Alliance Urges NAIC to Move up Regulatory Modernization Efforts

The Alliance of American Insurers is urging the National Association of Insurance Commissioners (NAIC) to advance their timetable for getting all 50 states to modernize their regulatory processes from the current 2006-2008 deadlines.

Commenting at the Dec. 6 Industry Liaison Committee meeting at the NAIC’s Winter Meeting in Anaheim, Alliance Vice President of Legal & Regulatory Affairs, Lenore Marema, said recent Congressional oversight hearings certainly should have suggested to state regulators that Congress may not be willing to wait that long to see real improvement in state insurance regulation.

“The NAIC needs to act sooner rather than later on key areas such as rate and form filing, company licensing, agents’ licensing, and market conduct,” said Marema. “From our vantage point, it appears the commissioners are focusing their budget and strategy on defending state regulation in the nation’s capital. While a defensive agenda may be necessary, we believe more time should be spent in the state capitals affirmatively enacting and implementing the state modernization agenda already on the table.

“We don’t think the threat of federal oversight is going to go away until the states act to improve their regulatory efficiency and effectiveness, so we would like to see more state- specific plans that identify the items from the NAIC’s Statement of Intent Agenda that need to be implemented in each state and that set time frames for the next action. If the NAIC and the states do not have this kind of game plan in place, the time to do so is now.

“We have a common end-goal with state regulators – an efficient regulatory system at the state level. We have our own state agenda and plans, but would benefit from input and direction from the commissioners’ own plans for what can be done at the state level.

“It’s time to start benchmarking some real progress at the state level.”