Filed Under:Life Insurance, Life Planning Strategies

Life Digest--NY's Lawsky, DOL proposal, Marijuana investments

The Wall Street Journal: NY's Lawksy eyes new standards for life insurance deals

“New York's top financial regulator has been much in the public eye in recent months. His latest move to strengthen rules governing acquisition deals -- specifically by requiring buyers of life insurance businesses to adhere to stiffer disclosure requirements about corporate structure, ownership and some aspects of operations -- follows an announcement in late march to reduce reserving requirements on term life policies. The amount of reduction: an estimated 30 to 35 percent starting in January 2015, the decrease determined by formulas rather than the “principles-based-reserving” (PBR) approach being considered by the National Association of Insurance Commissioners.”
—Warren S. Hersch
New York’s top financial-services watchdog is proposing to extend new and stiffer standards to acquisition deals across the life insurance industry. New York’s Department of Financial Services blessed the three deals last year after the insurers agreed to special rules aimed at safeguarding consumers who depend on income from long-term savings products bought from the insurers.

DOL proposal could put employers on the hook for bad retirement investments

“The DOL's proposed fiduciary standard respecting worksite retirement plans clearly is rubbing the wrong way with a lot of people. Not least among them: the estimated one-third of small businesses that say they would drop their employee retirement plans if the standard made them liable for investment choices. A study released in April, published by the policy group Quantria Strategies, also indicated that a DOL fiduciary standard could reduce retirement savings of some American workers by 20 percent to 40 percent. The study came to this conclusion on the basis that workers who leave their jobs would be more likely to cash out their retirement plans if financial professionals are barred from advising them on what to do with the accounts.
—Warren S. Hersch
Nearly a third of U.S. small businesses say they would drop their employee retirement plans under a proposed federal rule that could make them liable for the plans' investment choices, according to a survey by U.S. Close to 50 percent of small businesses that don't have retirement plans said the regulation that has been proposed by the U.S.

SEC Urges Caution For Marijuana Related Investments

“As this SEC warning makes clear, investors would do well to apply due diligence before making any marijuana-related investments. Less scrutiny is needed when it comes to pot smokers investing in a protection product like life insurance. Though marijuana is still classified as a Schedule I controlled substance under federal drug laws, insurers' underwriters typically disregard the question of legality and view the practice as a habit similar to tobacco use.”
—Warren S. Hersch
The Securities Exchange Commission issued a warning Friday for investors hoping to take advantage of shifting pot laws at the state level by investing their money in marijuana related businesses. “Fraudsters often exploit the latest innovation, technology, product, or growth industry – in this ...
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