Very good article on a complicated subject but most important to anyone that can say insurance. These are the roots that will develop into a mighty oak.
It’s obvious that the lawmakers and judicial branch know the private organizations can not be making law like they do. So, do they pull in the reins or get thrown off the horse?
Really! Unlike the AMA, the NAIC is the oldest state executive association and its board is made up solely of State Insurance Commissioners, either elected or appointed by all of the member states (50 states, plus some territories). I am reasonably certain the AMA’s board is made up of private physicians, so there is in fact no basis to equate the two organizations. It has long been accepted that the NAIC is the defacto national standard setter for the insurance industry and has an excellent track record of avoiding some of the major financial failures experienced by the banks and securities firms regulated by the federal government. With all due respect for legislators and legislatures, they are not equipped to formulate complex insurance regulations that often apply nationally and require national uniformity. The IBR process is an effective and efficient means of implementing uniform regulation on a national basis, as opposed to 50 independent bodies of widely varying expertise each doing their own thing.
Very good article on a complicated subject but most important to anyone that can say insurance. These are the roots that will develop into a mighty oak.
It’s obvious that the lawmakers and judicial branch know the private organizations can not be making law like they do. So, do they pull in the reins or get thrown off the horse?
Really! Unlike the AMA, the NAIC is the oldest state executive association and its board is made up solely of State Insurance Commissioners, either elected or appointed by all of the member states (50 states, plus some territories). I am reasonably certain the AMA’s board is made up of private physicians, so there is in fact no basis to equate the two organizations. It has long been accepted that the NAIC is the defacto national standard setter for the insurance industry and has an excellent track record of avoiding some of the major financial failures experienced by the banks and securities firms regulated by the federal government. With all due respect for legislators and legislatures, they are not equipped to formulate complex insurance regulations that often apply nationally and require national uniformity. The IBR process is an effective and efficient means of implementing uniform regulation on a national basis, as opposed to 50 independent bodies of widely varying expertise each doing their own thing.