AIA LIKES NCOIL’s MOVES IN STATE REGULATION

According to the Alliance of American Insurers (AAI), the National Conference of Insurance Legislators (NCOIL) took a giant step toward improving uniformity in state regulation by formally adopting model legislation based on the AAI’s Company Licensing Model Act. The action took place during the group’s summer meeting in Boston July 11-14. The action was one of several measures the group took that will kick-start modernization of insurance regulation in the states, according to an Alliance representative that attended the meeting. “The Alliance’s Model Act promotes consistency by creating common licensing requirements, forms and procedures among the states,” John Lobert, Alliance senior vice president of state government affairs, said. “It accomplishes this by repealing all company licensing requirements and all licensing forms not contained in or required by the National Association of Insurance Commissioners’ Uniform Certificate of Authority Application. The Alliance Model also gives state insurance commissioners the authority to reject new requirements and forms if they are found not to be in the best interests of the public or are unduly burdensome to insurers.” Lobert noted that the Alliance has been active in educating state legislators on the need for regulatory modernization. In other modernization action, the group of insurance-focused state legislators defeated proposed amendments to NCOIL’s previously-adopted Property Casualty Insurance Modernization Act that reportedly would have weakened the act considerably.

Topics Legislation