The following articles are available for your review.
Please contact us if you find any errors, or have any suggestions or comments. We welcome your submission of articles for inclusion. Please complete the Contact Us form or e-mail us at inquiry@firstconsulting.com
A Quick Review - Proposed Changes to Short-Term Limited Duration and Fixed Indemnity Insurance
If you sell or are insured under short-term limited duration health plans or excepted limited benefit policies, such as Hospital Indemnity, you will want to know about a proposed rule……
Written By: Kathy O'Farrell
Published: July 27, 2023
“Paws” and Decide – Is Pet Insurance in Your Future?
Is your company considering a role in pet insurance. As the pet insurance market continues to grow at a rapid pace, regulators are taking notice and the NAIC has now issued a Model Regulation on this insurance. Let’s explore the market and regulatory response.
Written By: Kathy O’Farrell and Sean Cox
Published: November 28, 2022, courtesy of PIMA (Professional Insurance Marketing Association)
Climate Risk Disclosure for Insurance Companies
The (NAIC) announced on April 8, 2022, that 15 states adopted a new standard for insurance companies to report their climate-related risks. This article summarizes the required survey and which carriers will apply to.
Written by: Kathy O'Farrell
Published: May 27, 2022
Nonforfeiture Law for Annuities - State Tracking Chart
First Consulting continues to monitor state changes in the Standard Nonforfeiture Law for Individual Deferred Annuities. States are reducing the minimum nonforfeiture interest rate from 1% to 0.15%, and we are happy to share our findings with our clients and friends. We hope that you will find this information valuable.
Written by: Kathy O'Farrell
Published: April 10, 2022 Updated: October 12, 2022
Nonforfeiture Rate Changes and Filings
A last-minute perfect storm may be brewing for carriers who write life and annuity business impacted by nonforfeiture interest rate changes. If you have not yet reviewed your policy forms and actuarial memorandums, you have only until December 31, 2021 to obtain life regulatory approvals. We hope that you will find this information valuable.
Written by: Kathy O'Farrell
Published: August 31, 2021
IRS Interest Rate Change Impacts Life Insurance
Section 7702 contains actuarial tests that a life insurance policy must pass to be considered life insurance and not an investment contract. The result is a change to the nonforfeiture interest rate that must be made to applicable policies being sold after 1/1/22. How many filings will you need to make?
Written by: Kathy O'Farrell
Published: March 25, 2021
NM Declares Moratorium on Approval of Commercial COVID-19 Policy Changes
In the spirit of protecting the public interest, the New Mexico Superintendent of Insurance issued a moratorium on approving specific commercial products and endorsements on December 4, 2020.
Written by: Kathy O'Farrell
Published: December 23, 2020
NAIC Updates Model Act to Expand Rebate Exceptions
The NAIC Executive Committee adopted a new amendment to the model language which allows for certain types of “rebates” to be offered to consumers in early December, 2020.
Written by: Kathy O'Farrell
Published: December 22, 2020
The New Mexico superintendent of insurance has issued a third bulletin addressing the partial lifting of the filing moratorium on specific “excepted benefit” products. This recently published bulletin contains good news regarding the filing of updated rates for previously approved dental, vision and disability excepted benefits.
Written by: Kathy O'Farrell
Published: December 10, 2020
There has been a flurry of bulletins from the New Mexico superintendent of insurance this year regarding the moratorium on filing forms and advertising of “excepted benefit” products. Yet another bulletin was recently published which contains good news for the industry regarding the filing of advertising.
Written by: Kathy O'Farrell
Published: November 9, 2020
New Mexico Lifts Approval Moratorium on Excepted Benefit Products
After eight months, the New Mexico Office of Superintendent of Insurance (OSI) has lifted its temporary moratorium on approvals of “excepted benefit” products because of a new rule that took effect on October 1, 2020. Lifting this moratorium will once again allow insurers to pursue approval of their excepted benefit products.
Written by: Kathy O'Farrell
Published: October 14, 2020
The Impact of Valuation and Nonforfeiture Rate Changes on Life Insurance Products
Market interest rates have dropped to unprecedented low levels over the last few months, creating a substantial financial impact on insurers’ life portfolios. Will you need to file policy forms and actuarial memorandums?
Written by: Kathy O'Farrell
Published: October 5, 2020
Navigating Confusing Insurance Regulations
COVID-19 is causing headaches but offers an opportunity to improve business systems and compliance practices.
Written by: Ann Dieleman and Sean Cox
Published: August 20, 2020 courtesy of Insurance Thought Leadership
Advertising Compliance in the “New Normal”
Company’s and Agent’s are utilizing new marketing methods to reach customers who are more and more reluctant to have face to face meetings. Utilizing online marketing methods is becoming the “New Normal”: Zoom, Social Media, Emails. This article addresses those new compliance considerations and best practices.
Written by: Anita Dulmes
Published: June 3, 2020
First Consulting is monitoring potential DOI limitations and delays during this time, and we would like to share our findings with our clients and friends. You can find this information in this tracking chart. We hope that you find this information valuable.
Written by: Sean Cox
Published: March 24, 2020; Updated: April 21, 2020
TPA Licensing - Drafting a Plan of Operations
A core component to any quality TPA Licensing submission is the development of a clear Plan of Operations. The Plan of Operations often introduces a TPA to the regulator so it's important to provide documentation of your qualifications to hold a TPA license in the state in which you are applying.
Written by: Jason Robbins
Published: October 28, 2019
Do' and Don'ts of Completing the NAIC Biographical Affidavit
The NAIC Biographical Affidavit is a key element of TPA applications in several states. While some states have developed their own affidavit, the majority will accept the form published by the NAIC. Generally, biographical affidavits need to......
Written by: Jason Robbins
Published: October 28, 2019
5 Ways to Avoid TPA Licensing Speedbumps
Nearly every week, we at First Consulting & Administration hear from a third party administrator (TPA) exploring a new business opportunity, but they often have the same problem: they aren’t licensed in that jurisdiction yet. That realization is immediately followed by the following question......
Written by: Jason Robbins
Published: October 28, 2019
4 Ways to Identify and Resolve Compliance Challenges
The Interstate Insurance Compact has taken strong steps to consolidate compliance issues surrounding life, annuity, and other health products, but the overall compliance landscape continues to become more complex. A combination of outside increased scrutiny of corporate compliance regulations, and evolving insurance marketing practices resulted in more rules than ever for the insurance industry.
Written by: Sean Cox
Published: October 7, 2019
Corporate Governance - Board of Director Evaluations
States continue to adopt the National Association of Insurance Commissioners (NAIC) model act (#305) and regulation (#306) on Corporate Governance Annual Disclosure (CGAD) reporting requirements. Putting the Board and committee evaluation protocols in place now will better position your company to submit a robust report when it comes due.
Written by: Joe Bieniek
Published: May 21, 2019; Updated December 23, 2019
Compact Update – District of Columbia can be added soon
First Consulting is excited to bring you the latest news with the insurance Compact. Last year D.C. passed D.C. ACT 22-514 which paved the way for this jurisdiction to join the Compact. There were a few hurdles D.C. had to clear before they could join the Compact, but on March 6th, the final hurdle was achieved. The Compact will begin accepting D.C. as part of Compact filings on March 21, 2019.
Written By: Claire Miller
Published: March 2019
Is the District of Columbia on your IIPRC radar?
On November 13, 2018 the District of Columbia passed D.C. ACT 22-514 that paves the way for their addition to the Interstate Insurance Product Regulation Commission (Compact). There are a few final hurdles to be cleared before this becomes official, but it is anticipated that an effective date will be announced in February or March of 2019.
Written By: Claire Miller
Published: January 2019
The IIPRC Announces Its Own Version of a TSA Pre-Check Program for Life and Annuity Product Filings
The Compact announced its Pilot Program for Expedited Review this month. The Pilot Program will run from January through June 2019. This program is for experienced Compact filers or, if you will, “frequent flyers” with the Compact. If your Company qualifies for the Expedited Review program you can get a filing reviewed and approved in as few as ten days.
Written By: Claire Miller
Published: January 2019
The Pinnacle of Compliance
First Consulting was excited to contribute to this excellent article on building a culture of compliance, how best to staff for a compliance lead, and the potential ramifications of non-compliance. This article should be of particular interest to those interested in insurance regulatory compliance and compliance staffing considerations including co-sourcing and outsourcing.
Published: Winter of 2018, with permission from NAMIC
How the “Tax Cuts and Jobs Act of 2017” Impacts Your Products
Many of us were quick to determine the impact of the recent tax plan on our paychecks, but have you considered how this tax plan also affects your company’s products?
Written By: Sean Cox
Published: June, 2018, with permission from the AICP
Risk Intelligence: Increase Your Analysis of Applicants
Insurance companies face increasing regulatory requirements and scrutiny in their Corporate Governance, in particular the evaluation of the effective oversight of their Board of Directors. Boards of Directors have a higher standard of due diligence in the industry, including suitability of its directors, than ever before. Some leading practices for an insurance company Board are explored here.
Written By: C.J. Rathbun
Published: March, 2018, with permission from the AICP
What Happens to Incentive Trips Under the DOL Fiduciary Rule?
This is Part 4 of a series of articles taking a deep dive into what the annuity world will look once the Rule takes effect next April.
Written By: Kevin W. Mechtley, J.D.
Published: October 11, 2016, with permission from the LifeHealthPro
DOL 101: The fiduciary rule's impact on IMOs
This is Part 3 of a series of articles taking a deep dive into what the annuity world will look once the Rule takes effect next April.
Written By: Kevin W. Mechtley, J.D.
Published: July 12, 2016, with permission from the LifeHealthPro
DOL 101: The fiduciary rule's impact on Annuity Carriers
This is Part 2 of a series of articles taking a deep dive into what the annuity world will look once the Rule takes effect next April.
Written By: Kevin W. Mechtley, J.D.
Published: June 20, 2016, with permission from the LifeHealthPro
DOL 101: The fiduciary rule's impact on insurance-only agents
The Department of Labor’s new “Fiduciary Rule” is the most significant industry game-changing development we have seen since the tax reform to annuities in the early 1980s. This is Part 1 of a series of articles taking a deep dive into what the annuity world will look once the Rule takes effect next April.
Written By: Kevin W. Mechtley, J.D.
Published: May 31, 2016, with permission from the LifeHealthPro
10 compliance challenges annuity providers will face in 2016
As if the finalized Department of Labor fiduciary rule is not enough of a challenge for the annuities market to tackle, several other regulatory and compliance issues are still important for carriers, producers and independent marketing organizations to focus on this year.
Taken from NAFA webinar presented by Kevin W. Mechtley, J.D.
Published: April 7, 2016, with permission from the LifeHealthPro
What You Should Know About NAIC’s Corporate Governance Disclosure Regulation Mandate
Last summer, the NAIC adopted a Corporate Governance Annual Disclosure Model Act and supporting Model Regulation, which provides a way for insurance regulators to receive, on an annual basis, additional information on the corporate governance practices of U.S. insurers.
Interview with CJ Rathbun of First Consulting
Published: 7/17/15 issue of the American Fraternal Alliance, President’s Blog, with permission.
The Clock Is Ticking on Corporate Governance Reporting
In less than a year, insurers – regardless of size, premium volume or their lines of business – will have to provide regulators concise information about their corporate governance practices, including insights into their corporate governance structure, board of directors practices, management policies and areas of risk.
Interview with Carol Stern of First Consulting
Published: 6/22/15 issue of Insurance Compliance Insight, with permission.
Best Compliance Practices for Social Media
Social media is part of everyday life. Organizations that do not embrace social media in their marketing, do so at their peril. But it is not without its challenges. A careful analysis and strategy is needed for success.
Written By: Jerry Wickersham
Published: Winter 2015 issue of ConnXions, with permission from the Professional Insurance Marketing Association.
12 Important Factors to Consider When Developing Effective Key Risk Indicators
In working with companies over the past year to help implement their ERM frameworks and also prepare to file a report for the Own Risk & Solvency Assessment (ORSA) requirements, we gathered some expertise and knowledge about the development of key risk indicators. These 12 Factors are useful to all companies in assessing whether their risk monitoring has any gaps.
Written by: Carol Stern
Is Reputation Risk Your Number One Risk?
When reputation risk is the Company’s highest risk, senior management can set a tone at the top that will establish an excellent environment to advance a culture of compliance and ethics.
Written by: Carol Stern
The Intersection of Risk Management and Corporate Governance
This article discusses the significant impact on all insurers from the interrelation of Own Risk Solvency and Assessment (ORSA), Enterprise Risk Management (ERM) and the recently adopted NAIC Corporate Governance Annual Disclosure Model Act (CGAD) and supporting Model Regulation.
Note, this article has also been published by CEFLI and their members can view it at cefli.org.
Written by: Carol Stern and C.J. Rathbun
ERM, ORSA and Corporate Governance: The Small Company Challenges
“Challenges for small companies in 2015 and beyond will require new focus on improving corporate governance structures, refining risk management governance, and ensuring that knowledgeable and qualified Board members make these decisions. The NAIC push to enact new model laws and regulations that do not exempt small companies or fraternal insurers will require some dramatic structural and procedural changes that take time and resources to implement.
Written by: Carol Stern
Published: Winter 2015 issue of The Regulator; Insurance Regulatory Examiners Society (IRES).
Summary of the NAIC Summer National Meeting 2014
An overview of the Summer National Meeting is intended as a brief summary of some of the meetings, decisions and issues addressing the insurance industry during the Summer National Meeting.
Written by: Joe Bieniek
ORSA: Three Ways It Can Up YOUR Game
This article highlights the Own Risk Solvency and Assessment (ORSA) model and its reporting requirements. The reports help to evaluate material risks of an insurance company and its holding company structure including an Enterprise Risk Management (ERM) framework.
Written by: Carol Stern
Published:
Spring 2014 issue of The Regulator; Insurance Regulatory Examiners Society (IRES).
December 2013, Compliance Matters, Regulatory & Legislative Interest Group Committee of the CPCU Society.
ERM + FSGO = CRM: A powerful combination to help keep your CEO out of jail
The article reviews how senior management involvement in an Enterprise Risk Management (ERM) program and the Federal Sentencing Guidelines for Organizations (FSGO) can combine into a holistic Compliance Risk Management (CRM) opportunity whereby the company makes strategic decisions and align capital accordingly with keeping the CEO out of jail.
Written by: Carol Stern and C.J. Rathbun
Published: Compliance & Ethics Professional, appears here with permission from the Society of Corporate Compliance & Ethics
ORSA: A Prospective View of Solvency
An overview of Own Risk Solvency & Assessment (ORSA) and the requirements of an Enterprise Risk Management (ERM) framework that monitors, assesses, and reports all areas of risk within the insurer to insurance departments is provided in this article. ORSA is viewed as a cultural change for both regulators and insurance companies.
Written by: Carol Stern and C.J. Rathbun
Published: LIMRA Regulatory Review Issue 2014-1a (January 2014)
An Update on TRIA
The Terrorism Risk Insurance Program Reauthorization Act of 2007 is set to expire on December 31, 2014. The article will provide a summary of the Terrorism Risk Insurance Act (TRIA) including concerns expressed with reauthorizing TRIA.
Written by: Joe Bieniek
Published:
Summer-Fall 2013 issue of The Regulator; Insurance Regulatory Examiners Society (IRES).
December 2013, Compliance Matters, Regulatory & Legislative Interest Group Committee of the CPCU Society.
Four Keys to Successful Health Exchange Filings
An element in the Patient Protection and Affordable Care Act (PPACA) was the creation of state exchanges. Policies need to provide the essential health benefits mandated by PPACA. This article covers the four key areas to make successful Plan Management and Health Insurance Oversight System (HIOS) filings.
Written by Sean Cox
Published: June 2013, Journal for Insurance Compliance Professionals; Association of Insurance Compliance Professionals.
Corporate Risk
“The scope of risk management extends all the way from the boardroom to the mailroom. The overall impact to the organization, though, is first addressed at the management level by the chief compliance officer (CCO). This article discusses the “next steps” for the CCO after a risk is identified, including the report, company responses due to a decision about the risk, and considerations for ongoing management of the risk.”
Written by C. J. Rathbun
Agent Advertising
The question of, “Who is responsible for compliance review of advertising created by independent agents?” seems to be one of those grey areas of advertising compliance. If an ad might sell one of your company products, will regulators hold you responsible? This article sheds light on what states really expect for oversight and compliance based on C. J.’s experience with agencies, insurers and regulators.
Published:
March 2013 Journal for Insurance Compliance Professionals; Association of Insurance Compliance Professionals.
Spring 2013 The Regulator; Insurance Regulatory Examiners Society.
June 2013, Compliance Matters, Regulatory & Legislative Interest Group Committee of the CPCU Society.
Market Conduct of Title Insurance
An overview of how market conduct examinations of title companies and agencies should be performed is presented.
Reprinted with permission from The Regulator by the Insurance Regulatory Examiners Society (IRES) Fall 2011
Written by Joe Bieniek
Demystifying Title Insurance
An explanation of title insurance and the various acronyms heard in the business are included.
Reprinted with permission from The Regulator by the Insurance Regulatory Examiners Society (IRES) Summer 2011
Written by Joe Bieniek
Best of Both Worlds: Combining Annuity and Long-Term Care Products
A review of the Pension Protection Act of 2006 (PPA) with combining annuity and long-term care products is reviewed.
Written by First Consulting staff
How Transparent Should Insurers be with Regulators?
Insurance companies are encouraged to provide information to regulators and to collaborate with regulators when the insurance company realizes it made a mistake. Reprinted with permission from The Regulator by the Insurance Regulatory Examiners Society (IRES) November 2006
Written by Joe Bieniek
The Cost of Regulatory Compliance
A technique to accurately quantify the costs related to compliance is presented. Reprinted with permission from The Regulator by the Insurance Regulatory Examiners Society (IRES) July 2006
Written by Joe Bieniek
An Insurance Fairy Tale
A Fairy Tale on how friends can help the Average Insurance Company become the Better Insurance Company. An article originally published in The Journal of the Association of Insurance Compliance Professionals (AICP) June 2008
Written by Debby Paris
Planning for the Worst and Hoping for the Best: How Early Compliance Intervention Can Save Money
This article indicates how experienced compliance experts can help find solutions and be particularly useful in different situations.
Written by First Consulting staff
Compliance is King: 3 reasons to consider a third-party review for your marketing materials
Today’s marketers are also jugglers who must educate, curate and entertain in an ever-expanding, increasingly global marketplace. It’s a tall order, and one that, in the insurance industry, comes with serious strings attached. For advisors, client-facing marketing materials are subject to close scrutiny from both state insurance departments and federal regulators. This means that every word must be weighed carefully, not only in brochures, newsletters and seminar materials, but also in social media posts and web communication.
Written by Nichole Morford
Change in Reserve & Nonforfeiture Interest Rate
New maximum interest rates for reserves and nonforfeiture will effect life insurers.
Written by John Palmer
The Pros and Cons of Outsourcing Policy Filings for an Insurance Company
An overview of the rate, rule and form filing process and the challenges a company faces in determining how to get a filing approved.
Written by Sean Cox
Co-Sourcing
The article indicates how the Co-Sourcing approach is flexible so it can be customized to the specific needs of each insurance company and project.
Written by First Consulting staff
A Refresher: Insurance Advertising Rules & Compliance
A short article highlighting some of the more important advertising rules according to the NAIC Model Rules. This article was originally published in the Winter, 2012 ConnXions publication by the Professional Insurance Marketing Association.
TPA Licensing - Drafting a Plan of Operations
TPA Licensing - Drafting a Plan of Operations