Johnson and Sununu Reintroduce National Insurance Act

On May 24, 2007, United States Senators Tim Johnson (D-S.Dak.) and John Sununu (R-N.H.) reintroduced the optional federal charter legislation entitled the National Insurance Act, similar to the bill they introduced in April 2006. The legislation is modeled after the dual-charter system in the banking industry, allowing insurers operating in multiple state jurisdictions to choose whether or not to be regulated at the national level, the goal being to reduce the cost and improve the delivery of insurance products.

Johnson and Sununu are both members of the Senate Banking Committee. In a statement, Sen. Sununu said, "this legislation provides a choice for insurers if they wish to become chartered at the national level, enabling them to work under a uniform set of regulations and an effective federal regulator. Some institutions may choose not to do so, and this bill does not weaken or undermine the current state system for these firms." Sen. Johnson said, "insurance regulation is not a simple issue, and therefore, there is no simple solution. That said, there is increasingly widespread consensus that the status quo for insurance regulation is unacceptable. I am pleased to be reintroducing with Senator Sununu the National Insurance Act of 2007, a bill that we believe is the right and reasonable approach to insurance regulation modernization."

The press release announcing the bill says the following about the guaranty association provisions in Title VI of the bill: "Additionally, National Insurers, as a general rule, must belong to the State guaranty associations in each State in which they offer insurance. These associations assume obligations to policyholders, up to certain limits, when an insurer is placed into receivership. If a State guaranty association does not provide policyholders with a level of protection equivalent to NAIC model standards, a National Insurer must join the National Insurance Guaranty Corporation (established under the NIA) which would provide such protections to policyholders. The Corporation would have separate accounts for life insurance and property and casualty insurance, and similar to State guaranty associations, would be post-funded with assessments of its member companies."

For a complete copy of the press release and the text of the proposed bill, please contact Meg Melusen at [email protected].

Legal Seminar Addresses Marketing to Baby Boomers

Tony Canini, CFP (a wealth management advisor in Merrill Lynch's San Francisco office) and Chris Peterson (a regional vice president with Northwestern Mutual Investment Services LLC, a wholly owned subsidiary of Northwestern Mutual Life Insurance Company) will speak at NOLHGA's upcoming 15th Annual Legal Seminar about marketing products to the Baby Boomer generation. Their presentation will focus on which traditional and new life products are available to current and soon-to-be retirees and what factors should be considered when evaluating the suitability of retirement products. In connection with specific hypothetical consumers, Canini and Peterson will also discuss the application of those suitability principles.

The Legal Seminar will be held July 12-13, 2007, in San Francisco at the Stanford Court Hotel. The meeting Web page features a link to the Stanford Court Hotel as well as other meeting information, and it will feature information on the July 11 MPC meeting when such information becomes available. The site also offers online registration for the Legal Seminar ($595 per attendee, with a $35 discount if you register before June 8) and MPC meeting (free registration).

The NOLHGA room rate for the meeting is $199/night plus tax, and the "Hotel Information" section of the meeting Web page features a link that allows attendees to book their room(s) online and obtain the special NOLHGA rate. The cut-off date for hotel reservations is June 19, but attendees are encouraged to book their rooms as soon as possible.

If you have any trouble accessing the meeting Web page, please contact Dan Hicks at [email protected] or 703.787.4112. Questions concerning the Legal Seminar should be directed to Meg Melusen at [email protected] or 703.787.4130.

Travel Advisory for July Legal Seminar & MPC Meeting

Due to the recent collapse of the Bay Bridge intersection and the ongoing repair work in Oakland, NOLHGA strongly advises attendees of July's Legal Seminar and MPC meeting to use San Francisco International Airport when making their travel arrangements. If air travel into Oakland International Airport is necessary, attendees should consider using BART (Bay Area Rapid Transit) to avoid significant traffic delays when returning to the airport.

New Material Added to Committees Section of NOLHGA Site

The Committees section of the NOLHGA Web site, which contains the rosters of all NOLHGA Board-appointed committees as well as relevant committee documents (reports, meeting minutes, etc.), has been expanded to include a description of each committee's mission. In addition, minutes from the February 2007 NOLHGA Board of Directors meeting have been posted.

Only guaranty association users can access the Committees section. If you have any troubles obtaining access to the section, please contact Sean McKenna at [email protected].