One of the purposes of the PIB is to make sure that our readers maintain awareness of the insurance world, and to that end, there’s some interesting news out there for all life, P&C insurance producers, and securities brokers. Some of this news is particular to certain lines of insurance, but some addresses concerns of all in the financial services world. All of this information is courtesy of the National Underwriter. Read on for more information!
Just Say No!
The National Conference of Insurance Legislators (NCOIL) is seeking state support to stop a bill that would establish the “Federal Office of Insurance Information.” Reuters has a great article explaining the bill; click here for the article. The legislation, called the Insurance Information Act (H.R. 5840) would establish an Insurance Information office within the Treasury Department. It is designed to provide expertise to the federal government on insurance issues and work with the U.S. Trade Representatives in dealing with other countries.
According to the National Underwriter, NCOIL officials have expressed “strong opposition” to the bill, warning that it allows for the preemption of state insurance law and could serve as a precursor to the creation of an optional federal charter for insurance. The PIB previously contained an article that discussed the National Office of Insurance. Click here to review that article. Thoughts?
Are The Feds Going to Slash Funding for Medicare Advantage Plans?
At press time of the latest National Underwriter magazine, the U.S. Senate was debating whether to accept earlier legislation passed by the House with a veto-proof margin which would slash the Medicare Advantage program by $13.8 billion over the next 5 years. The legislation also codifies substantive restrictions on Medicare marketing, including a greater state role. Click here for the National Underwriter article.
New Proposed SEC Legislation on Indexed Annuities
According to the National Underwriter, members of the U.S. Securities and Exchange Commission (SEC) have voted 3-0 to propose a rule that would define some indexed annuities as securities. The National Underwriter article (click here for that article) states that the SEC would create a new rule that changes the way the SEC treats indexed annuities under section 3(a)(8) of the Securities Act of 1933. Click here for a basic discussion of article 3(a) of this act, courtesy of the University of Cincinnatti College of Law. Just so you remember, anything that would be classified as a security would require a securities license in order to sell!
Your thoughts and perspectives are welcome; we are always looking for good comments!