NAII, Alliance to Testify at Congressional Hearing on Regulatory Modernization

On Thursday, June 21, 2001, National Association of Independent Insurers (NAII) Vice President and Assistant General Counsel Bob Zeman will testify before the U.S. House Committee on Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises on the topic of personal lines regulatory modernization.

According to the NAII, this hearing marks the first congressional consideration Of effort to modernize state insurance regulation in the face of mounting federal pressure since enactment of the federal Gramm-Leach-Bliley Act.

Zeman will be accompanied by Rita Nowak, assistant vice president of the Alliance of American Insurers. In their joint congressional testimony, the NAII and the Alliance call for regulatory modernization efforts to be organized on a state-by-state basis.

Insurance regulators, academics and consumer special interest group representatives are also slated to testify at the hearing.

Much of Mr. Zeman’s testimony is based on the results of a survey of Member company state filers conducted by NAII late last year. NAII presented similar testimony to the American Legislative Exchange Council, the National Conference of State Legislators, the National Conference of Insurance Legislators and the National Association of Insurance Commissioners earlier this year.

As a result of NAII’s advocacy efforts, ALEC has adopted a model law calling for states to implement a use-and-file rate regulation system for personal lines. The Association is working to have the other legislative and regulatory groups adopt similar models.

The hearing is being held by the House Capital Markets, Insurance and Government-Sponsored Enterprises Subcommittee, chaired by Rep. Richard H. Baker (R-LA). This is part of a series of hearings planned by Baker to encourage states in developing uniform insurance laws.