NAIC to Consider Revised GA Model Act

During an October 21, 2008, teleconference, the NAIC Model Act Revision Working Group (MARG) voted to adopt a revised Life and Health Insurance Guaranty Association Model Act. The key revisions to the Model Act include: (1) an increase in the coverage limit for long-term-care insurance from $100,000 to $300,000; (2) an increase in the coverage limit for allocated annuities (including structured settlement annuities) from $100,000 to $250,000; and (3) the addition of a coverage exclusion for Medicare Part C and D policies.

The revised Model Act was presented to the NAIC Receivership and Insolvency Task Force (RITF) during a teleconference on October 23. It is anticipated that RITF will vote to expose the revised Model Act for a 10-day comment period and then meet again by teleconference in November to vote on the revised model. Assuming RITF approves the revised Model Act, it will then be presented to the Financial Condition (E) Committee and NAIC Plenary for final approval.

Once the revised Model Act is adopted by the NAIC, NOLHGA's Legal Committee will prepare a summary of the revisions for guaranty association administrators.

GA Contact Information

Greg Morris, Executive Director of the North Dakota Life & Health Insurance Guaranty Association, can now be reached at the following address:

Gregory D. Morris
Chief Legal Counsel, U.S. Operations
Industrial Alliance Pacific Insurance and Financial Services, Inc.
17550 N. Perimeter Drive, Suite 210
Scottsdale, AZ 85255-0131
Phone: 480.473.5553

He can still be reached via e-mail at [email protected].