Summary
On February 22, 2012, a working Subgroup of the NAIC recommended to the NAIC’s Life Insurance & Annuity Committee that contingent deferred annuities (CDAs) be regulated as life insurance products and not as financial guarantee insurance. The Subgroup recognized that CDAs resemble variable annuity guaranteed lifetime withdrawal benefit riders (GLWBs) and also recommended the formation of a new working group to evaluate for both CDAs and GLWBs appropriate solvency and consumer protections.
Regulatory Developments
Report of the CDA Subgroup.