In an interim meeting this week, the National Association of Insurance Commissioners (NAIC) adopted a bulletin that outlines regulators’ expectations regarding filing of rates, policy form language and disclosure notices to policyholders in light of passage of the Federal Terrorism Reinsurance Act signed by President Bush earlier in the week. The NAIC will hold its winter meeting in San Diego, Dec. 7-10.
“Discussion of the bulletin and other aspects of NAIC’s ongoing involvement in implementation of the federal law will certainly continue at the winter NAIC meeting in San Diego,” National Association of Independent Insurers (NAII) senior vice president, State Government Affairs Robert Zeman said. “Although some of the new federal law preempts state insurance regulators’ authority, much of the implementation will depend on regulators’ defining parameters for insurers, particularly regarding the offering of terrorism
coverage to policyholders where none was available before and setting of rates for such coverage. This issue is expected to be one of several priority topics at this meeting.”
Another hot topic, according the NAII, is the proposed amendments to the model privacy regulation pertaining to notices for workers’ compensation risks that will discussed at the Executive Committee meeting.
“The industry has joined together to ask the NAIC to reconsider these amendments to their privacy model,” Zeman remarked. “Most states already have their privacy laws in place and many have excluded workers’ compensation completely. These amendments would be burdensome, inappropriate and confusing.” Zeman added that another proposal to reconsider release of zip code data, defeated in committee earlier this year but proposed by Commissioner Terry Vaughn, will also be on the agenda of the Executive Committee.
NAII added that insurance credit scoring will continue as a controversial issue at the December meeting. The NAIC has abandoned a model or “best practices” approach in favor of a regulatory options paper along with a consumer information brochure that would be posted to their Web site. The NAII has submitted suggested changes for both the options paper as well as the brochure and expects to offer further comments at the NAIC Credit
Scoring Working Group, according to Zeman.
The hardening market continues and will also be addressed by the regulators.
“The new Market Conditions Working Group created during the last meeting will hear testimony and reveal results of a preliminary data analyses for medical malpractice, the first troubled line slated for discussion,” Zeman said. “This discussion will also center around affordability and availability issues raised by consumer advocates on medical malpractice as well as other lines of business, including homeowners insurance.”
Zeman added that speed to market issues and market conduct reform, including the proposed market conduct annual statement, will also be high priority issues for NAII.
NAII expects to participate and work with regulators on all of the priority issues, Zeman concluded.
Topics Catastrophe Natural Disasters
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