Rapid Adoption for NAIC Model Legislation
While legislation has not drastically shifted on suitability requirements nationwide, the insurance industry is seeing a rapid rate of adoption for NAIC model legislation that outlines suggested producer training requirements for annuity products. Twenty-two states have already implemented regulation based on the model, with another ten on the horizon.
In working with education vendors across the country, I&RS has completed enhancements to its Licensing and Appointment (LNA) service to support the communication of producer training completions amongst education vendors, carriers and distributors. I&RS can now take standardized data feeds from vendors and convert them into the industry-standard LNA process already being supported for license and appointment management. In addition, using ACORD XML technology, a proposed new I&RS Producer Management Portal will soon be able to provide real time producer sales authorizations for the training component by validating the parameters of an annuity sale against training completion data stored within the DTCC portal. The portal project is currently under development and expected to hit the market in the latter half of 2012.
In addition to supporting producer training information, I&RS looks to expand the Producer Management Portal to include additional authorization criteria such as license and appointment data.
- An order entry B2B process: for distributors using an electronic annuity application platform, the process will support receiving ACORD XML inquiries that include parameters of a sale, and returning “Yes” or “No” results on whether a producer is trained.
- A user interface: for distributors who are unable to support electronic processes, the web interface will return user-friendly results regarding a producer’s training based on the type of inquiry. The inquiry could specify parameters of a sale for a “Yes” or “No” response, or could broadly ask for all training detail for a particular producer.
- A daily batch: for distributors desiring bulk producer training completion data to be housed within their own fire walls.
“We provide multiple portal access solutions because of the diverse community of expected consumers of this data,” said Lana Macumber, Director of Strategy for DTCC I&RS. “We want to expand it to as many customers as possible to create transparency to the end users and maximize the carrier and distributor’s return on investment.”
Interested parties are encouraged to reach out to their DTCC I&RS Relationship Manager for more information regarding participation.