NAIFA’s Policy Director Roger Moore attended NAIC’s Fall National Meeting, November 16-19. During the meeting, NAIC committees and working groups discussed multiple topics of interest to NAIFA members, including long-term care insurance, privacy protections, the use of artificial intelligence in insurance, producer licensing, and annuity standards. Additionally, a slate of new officers was elected for 2025, including Commissioner John Godfried (ND) as President; Commissioner Scott A. White (VA) as President-Elect; Director Elizabeth Dwyer (RI) as Vice President; and Commissioner John Pike (UT) as Secretary-Treasurer. The new officers will assume their duties beginning January 1, 2025.Roger also attended the latest meeting of the National Insurance Producer Registry (NIPR) Board of Directors, where he continues to sit as a non-voting member. Beginning in 2025, Roger will become a voting member of the board. 

Big Data and Artificial Intelligence (H) Working Group

The (H) Working Group discussed how AI is used in insurance, including implementation challenges and lessons learned. Working group members heard a presentation that highlighted how generative AI can streamline the underwriting process by reducing the number of questions that must be asked to policyholders, but data collection may suffer from bias and lack of transparency, raising serious privacy concerns and unfair underwriting outcomes. The presentation also focused on the role of generative AI in claims management, where it can be used to automate the analysis of documentation, images, and past claims history to expedite processing, although accuracy and fairness issues are a concern here as well.  

Following the successful adoption of the NAIC AI Model Bulletin in 2023, the Working Group will focus on the use of AI and consumer outcomes. Possible priorities include how well the current regulatory framework works against the potential harms that can result from the use of AI and whether additional regulatory filings and disclosures to consumers are needed. 

Annuity Suitability (A) Working Group 

The (A) Working Group met to discuss comments received in response to the chair’s draft safe harbor guidance document on the safe harbor/comparable standards provision in the revised Suitability in Annuity Transactions Model Regulation (Model #275). NAIFA joined a coalition letter highlighting industry concerns with the draft document, which were discussed during the meeting. 

The four main themes of the coalition letter include 1) the draft guidance should provide greater clarity as to the distinctions between an insurer’s responsibilities under the safe harbor and the provision that permits insurers to contract with third parties to perform the insurer’s supervisory obligations and clarity on how insurers can satisfy their obligations under Section 6C(1) of Model #275 in either scenario; 2) the draft guidance should make clear that insurers do not need to separately determine compliance with a “comparable standard,” as defined under the model; 3) the draft guidance should make it clear that insurers reviewing recommendations falling under the safe harbor can rely on a screening system, as allowed under the model; and 4) the draft guidance should provide adequate flexibility for companies to develop compliance programs that meet their particular business models and circumstances.

Producer Licensing (D) Task Force

The (D) Task Force continues to review comments received on the draft 1033 waiver template for criminal convictions. The Task Force recognizes a person must seek written consent from their home state and that non-residents should not have to apply for a 1033 waiver. At the same time, there could be situations where a nonresident may seek a 1033 wavier, such as when the person’s home state does not issue any waivers, or when a state limits the scope of its waivers to activities within its jurisdictions. The Task Force also considered the definition of “conviction” within the 1033 waiver template. As it stands, the definition is consistent with the NAIC’s Uniform Licensing Application. The Chair requested that NAIC staff schedule a meeting with the state insurance regulators who submitted comments on the draft to present a revised draft for the Task Force’s consideration during the Fall National Meeting.

Privacy Protections (H) Working Group

The (H) Working Group continues to revise Model #672 aimed at standardizing and updating privacy protections for the collection, data ownership and use rights, and disclosure of information gathered during insurance transactions. The Working Group plans to complete revisions for all sections of #672 before compiling them into a full model for review. A request to extend the deadline for completion of #672 revisions until the end of 2025 was adopted.

NAIFA Staff Contact: Roger Moore – Government Relations Policy Director – at rmoore@naifa.org.