Pennsylvania Insurance Commissioner Diane Koken, in her capacity as the state regulator for the insurance industry, has signed an agreement establishing protocols for sharing and protecting confidential information between other state insurance departments.
Developed by the National Association of Insurance Commissioners (NAIC), the agreement will reportedly help maximize resources and effectiveness of state insurance regulators by facilitating and streamlining the exchange of sensitive information. At the same time, safeguards are established that will protect this confidential information from being disclosed.
“Each day, insurance departments around the nation look for new and innovative ways to protect their consumers and efficiently regulate those entities conducting the business of insurance in their state,” Koken said. “By establishing uniform procedures for requesting and protecting confidential information, this new agreement gives us the ability to quickly exchange even the most sensitive information with insurance officials in other states to protect our most valuable customers – our consumers.
“Among other things, the agreement opens the lines of communication for sharing things like company financial solvency data and investigative materials regarding unlicensed insurance entities. Increasing the dialogue increases the reaction time we have to help a company that is financially troubled, revoke the license of a producer who is operating outside the scope of our laws and regulations, and prosecute those who are transacting the business of insurance without the authority to do so.”
As a member of the NAIC, Koken co-chairs the Coordinated Advertising Rate and Form Review Authority (CARFRA) working group, a committee designed to promote a more uniform state regulatory system by speeding up the process of bringing products into the marketplace, and serves on many other working groups and committees, such as consumer protections, privacy issues, senior citizens, workers’ compensation, and accounting practices, to name a few.
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