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Friday, September 26, 2014

This Week at the CFPB

A summary of this week's news about the CFPB from the ABIA and ABA Dodd-Frank Tracker:

Attendees at ABIA's Annual Conference, taking place in San Antonio September 28-30, will be able to hear from industry experts on the CFPB's recent actions that affect banks that sell insurance and learn how to avoid legal pitfalls.

The ABIA has a Task Force of members that work on issues related to the CFPB's regulation of insurance products. If you are an ABIA member and would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.

Thursday, September 25, 2014

Federal Insurance Office Releases 2014 Annual Report on Insurance Industry

The Federal Insurance Office released its 2014 annual report on the insurance industry.  The report mentioned three main problems in the insurance market:

  1. Very low interest rates have ahd an effect on life company reserves.
  2. Shrinking numbers of life agents contributed to a contraacting market.
  3. Non-uniform suitability standards: The NAIC's model law has not been adopted in all states and has had an impact on consumers.
Read the report.

For more questions, please contact ABIA's Kevin McKechnie.

ABIA Holds Compliance Webinar on Annuities

Today, the American Bankers Insurance Association held a Compliance Webinar on Annuities.  Chrys Lemon of McIntyre & Lemon, PLLC discussed annuity sales practices.  Other topics discussed included:
  • New CFPB TILA/RESPA Small Bank Compliance Guide
  • Complying with state suitability requirements
  • FINRA safe harbor
  • Annuity disclosures
  • Contingent defered annuities
View the presentation.

Download the recording.

Tuesday, September 23, 2014

NY Insurance Regulator Questioning Insurers Over Indexed Universal Life Policies

The New York Department of Financial Services is examining the marketing tactics used by life insurers to sell indexed universal life policies.  The agency sent a letter to 134 insurance companies on September 10 requesting details about their indexed universal life products and materials used to advertise them to potential buyers.  The agency's concern is the policies' are being presented to consumers in an inappropriate manner.  Financial Services Superintendent Benjamin Lawsky is investigating whether some insurance companies are taking advantage of consumers by misrepresenting the policies' potential returns.

Electronic Disclosures: Are You in Compliance?

By ABIA Outside Counsel, Chrys D. Lemon, McIntyre & Lemon, PLLC

Electronic disclosures are a good way to provide required disclosures to consumers.  The Federal E-SIGN Act (15 U.S.C. §§ 7001 et seq.) permits consumers to be provided disclosures electronically when the consumer has consented to receive disclosures electronically. However, the consumer must be provided with specific information before electronic disclosures can be provided.   
To learn about those specific requirements and complying with the use of electronic disclosures, read the full compliance article. 

Indicates ABIA members-only material. Not an ABIA member? Contact Jennifer Hatten to learn about the benefits of membership and ways to join here. Visit our membership page to learn more.

Are you an ABIA member but not yet on our ABIA Network? Contact Deanne Marino for an invitation.