ICAE – Washington, DC – Fall 1999 Exchange – Life & Health Breakout Session
Out-of-State Trusts & Associations
- Not all DOIs regulate trusts or associations claiming out-of-state jurisdiction.
- One state DOI reported having extraterritorial laws governing group health plans when a covered person resides within the state. They require stiff front-end compliance to ensure the organization is bonafide. So far, none has met the criteria.
Viaticals
- Viatical companies purchase a “terminally ill” customer’s policy and make promises based on ROI. If the person outlives the agreement, premiums must continue to be paid, causing complaints.
- Many insurers already make this service available directly to their policyholders with accelerated death benefit riders.
- Web watch: Viatical companies are offering to buy current policies of healthy individuals as long as they have a life expectancy of more than 12 years.
Internet Marketing
- A regulatory attendee said their state DOI recently added staff to monitor Internet marketing activity.
- Some insurers monitor their own online marketing. One reported having an agent contracting system on the Internet with information on branch offices, agent contracts, recruitment, and securities registration.
