NAIC Life Committee Approves Senior Designations Model Regulation
Issue: Senior Designations
Date: July 15, 2008
Action Taken: The NAIC’s Life Insurance and Annuities Committee has given its final approval to the Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities. The new NAIC model regulation tracks the approach followed in the model rule adopted on April 1, 2008 by the North American Securities Administrators Association (NASAA). The model is designed to stop the use of misleading senior-specific designations, while outlining the standards by which regulators can identify legitimate designations that provide producers with the expertise necessary to advise seniors. The model prohibits the use of designations that have not been legitimately earned, that are nonexistent, or that misrepresent a level of expertise or education that does not exist. It also specifies those organizations that are recognized as accrediting valid senior-specific designations -- institutions of higher education, The American National Standards Institute and the National Commission for Certifying Agencies.
Background: Through meetings between NAIFA’s leaders and the NAIC leadership, written comment letters and testimony at NAIC meetings, NAIFA had urged the NAIC to become actively engaged in this issue and to develop a model regulation based on the NASAA model. NAIFA, along with The American College, had submitted written comments on both the NAIC and NASAA proposed models, and the final NASAA model rule and NAIC model regulation include many of the revisions suggested by NAIFA and The College.
The bill blocks a 10.6 percent cut in doctors’ fees and would increase Medicare payments to doctors by 1.1 percent next year. But the physician increases would be offset by a reduction in payments to private Medicare Advantage plans.
Next Step: The NAIC model will be voted on for final adoption by the full NAIC membership in late August/early September. The text of the model regulation will be posted in the “Advocacy” section of the NAIFA website under the issue heading “Regulating the Use of Designations” as soon as it is released by the NAIC.
NAIFA Staff Contact: For additional information, please contact Gary Sanders at GSanders@naifa.org.
Back to NAIFA GovWatch