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An American Perspective on the New EU Rules on Customer/Policyholder - - PowerPoint PPT Presentation
An American Perspective on the New EU Rules on Customer/Policyholder - - PowerPoint PPT Presentation
An American Perspective on the New EU Rules on Customer/Policyholder Protection Viewed Against the NAIC Model Acts Leo P. Martinez Albert Abramson Professor of Law University of California, Hastings College of the Law VIIth Association
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Inducements Suitability Conflicts Scope Consequences Disclosure
IDD
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Background
McCarran–Ferguson Act:
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The Result
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The United States is a loose confederation of states with divergent insurance law and regulation
Push to Uniformity
❖American Law Institute: Restatement
- f the Law of Liability Insurance
❖National Association of Insurance Commissioners: Model Laws
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The ALI/NAIC strive to select solutions that are:
Likely to be adopted by a significant number of states Correct Defensible
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NAIC Model Laws
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IDD statement of purpose:
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Points of Comparison
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Scope
- Comprehensive
- Directed at consumer protection
- Piecemeal – consumer protection
- Uneven adoption by the states
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Disclosure, Conflicts, Inducements
- Broad disclosure of fees and conflicts
- Directed at consumer protection
- Disclosure to Insurance Commissioner
- Disclosure of commission structure
- Context matters
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Suitability
- Article 30
- Suitability statements required
- Piecemeal approach
- More burden on the consumer
- Except for military, sparse adoption
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Consequences
- Restrained
- Open treatment of criminal sanctions
- Pragmatic
- Uneven
- Strict and prescriptive in places
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There remains work to be done
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