The NAIC is forming a working group to study the new market of contingent annuities and similarly designed products from an actuarial and policy standpoint, as various parties in the industry diverge on how the product should be classified and if, indeed, they should be sold under existing statute or model law.
At the NAIC fall national meeting outside of Washington this week, regulators heard the American Academy of Actuaries and Prudential Financial argue that contingent annuities should be treated as annuities, while MetLife and a key actuary from the NAIC life actuarial workforce revealed deep reservations.
Dupont spoke before the NAIC and also provided a statement to reflect the company’s opinion. “These difficulties contributed to MetLife’s decision not to offer contingent annuities,” he said.
Moreover, DuPont noted that the then- New York Insurance Department (now the combined Department of Financial Services) asserted in 2009 that contingent annuities are financial guaranty insurance under New York law.