NAIC Provides Testimony on Implementation of Gramm-Leach-Bliley

Taking the National Association of Insurance Commissioner’s regulatory reform agenda before the Congress, NAIC President and Kentucky Insurance Commissioner George Nichols said during Congressional testimony Thursday that state insurance regulators are on track to implement and surpass the requirements of the Gramm-Leach-Bliley Act.

Testifying before the U.S. House of Representatives Commerce Subcommittee on Finance and Hazardous Materials Committee, Nichols underscored the commitment of NAIC members to improving the current system of state insurance regulation.

“State regulators are committed to uniform insurance regulation by eradicating outdated procedures that overly favor home-state autonomy at the expense of efficient interstate commerce,” he said. “Our ultimate goal of a national regulatory system based upon existing state authority goes well beyond the requirements of GLBA.”

Explaining the NAIC’s reform initiatives, Nichols said the NAIC is spearheading a set of national initiatives that will move state insurance regulation beyond the minimum requirements of GLBA in order to satisfy larger goals of regulatory uniformity and efficiency.

“Meeting the requirements of this act and the larger goals of regulatory uniformity will demand prompt action by several interested groups in addition to state insurance regulators, including state legislators and governors, Congress and insurance industry participants,” Nichols said.