New York Superintendent of Insurance Neil D. Levin announced yesterday that the New York DOI has recently completed all the requirements set forth by the State Regulation 2000 program by implementing the Producer Information Network, an electronic communication network that links state insurance regulators with the entities they regulate. This link will facilitate the electronic exchange of producer information. New York is the first major state to attain total compliance with SR2000.
“The Department is pleased to announce that the process of implementing SR2000 is complete. These initiatives will streamline, strengthen, and enhance the state regulation of insurance in the new millennium and beyond,” Levin said. “The SR2000 technology initiative will not only enhance efficiency and communication between regulators and the industry, but it will also increase uniformity.”
Last week, the Department processed its first live PIN transactions. The system will allow insurance companies to send Appointment and Termination transactions via the Internet to the National Association of Insurance Commissioners. These transactions will then be transferred electronically to the New York Insurance Department, be processed, and a confirmation sent to the initiating company.
The NAIC will be performing the processing and notification confirmation of the Appointment or Termination on the Department’s behalf.
SR2000 is a program sponsored by the NAIC that encompasses aggressive initiatives to encourage state insurance departments to become more effective and efficient regulators. Highlights of SR2000 include:
ALERT (Accelerated License Evaluation Review Techniques), a process designed to allow foreign insurers to file copies of the same application for admission in numerous states. While each Uniform State still performs its own independent review of each application, the need to file different applications, in different formats, has been eliminated for all states that accept the Uniform Application.
CDS (Complaints Database System), a nationwide database used for referencing and analyzing consumer complaints filed with state insurance departments. Complaints reported to insurance departments are submitted to the NAIC database thus enabling regulators to review this information during market conduct exams to compare complaint experience with premium volume and other insurance companies.
PDB (Producer Database), a database consisting of information relating to insurance agents and brokers. PDB links participating state regulatory licensing information into one common repository of producer information and sends an electronic notification to states if administrative action is taken against a licensed producer in their state or if a producer no longer holds an active resident license.
PIN, an electronic communication network that links state insurance regulators with the entities they regulate to facilitate the electronic exchange of producer information. Benefits of PIN include reduction in paperwork and data entry, development of national standards regarding electronic transmission of licensing data, and faster turnaround time. RegCast, a distribution channel for pending state regulations and pending NAIC model laws for review and feedback.
RIRS (Regulatory Information Retrieval System), a nationwide database containing adjudicated actions against producers. This system allows regulators to track the regulatory history of an individual or firm seeking licensure in their state.
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