CPCU Society Weighs Self-Regulatory Option for P/C Industry to Help Restore Public Image Hurt by Brokerage Issues
National News • March 21, 2005
The property casualty industry's leading educational society is weighing what role to play in helping the industry restore its image after months of charges about bid rigging and contingent ...
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Subject: Insurance Industry Self Regulation
Posted On: March 22, 2005, 3:52 pm CST
Posted By: RolfNeu a CPCU
Comment:
Self-regulation is what most industry groups prefer as it keeps the government out of their hair. But as we have witnessed over and over again 'self-regulation' is not really effective to protect consumers.
The CPCU Society should not waste its time or interject itself in the subject of industry/carrier regulation. Their focus should be on teaching and encouraging ethical and legal behavior by their members.
NAIC, the state attorney generals and the U.S. Justice Department should monitor and enforce the proper/legal conduct by the industry. When they violate the law, they should be punished and the individuals involved should lose their license, pay restitution and/or go to jail.
Civil law suits will also help to keep the industry in-line because they will undescore in a real monetary way that violating the law will be expensive. That unfortunately is how American business is most often kept in-line.
Subject: Insurance Industry Self Regulation
The CPCU Society should not waste its time or interject itself in the subject of industry/carrier regulation. Their focus should be on teaching and encouraging ethical and legal behavior by their members.
NAIC, the state attorney generals and the U.S. Justice Department should monitor and enforce the proper/legal conduct by the industry. When they violate the law, they should be punished and the individuals involved should lose their license, pay restitution and/or go to jail.
Civil law suits will also help to keep the industry in-line because they will undescore in a real monetary way that violating the law will be expensive. That unfortunately is how American business is most often kept in-line.