The Property Casualty Insurers Association of America (PCI) told legislators at the recent meeting of the National Conference of Insurance Legislators (NCOIL) in Florida that it would not support the Market Conduct Surveillance Model Act in its current form in 2005 state legislative sessions.
NCOIL adopted the Market Conduct Surveillance Model Act earlier this year with some key amendments suggested by regulators. But according to PCI, NCOIL did not address all of the concerns the insurance association had raised about the model.
“Regrettably we would have to oppose this model in state legislatures,” said Robert Zeman, PCI senior vice president, industry and regulatory affairs. “As written the model still does not include sufficient due process or provide statutory parameters for insurance examiners. The original version of the NCOIL model did not go far enough to address these problems and unfortunately to date that reality remains.”
Zeman said that PCI will continue to work with NCOIL on any proposed amendments to the market conduct model in the coming months, but cannot commit to supporting the model during the 2005 legislative sessions.
Other actions taken at the NCOIL meeting included the unveiling of a proposed CLUE Model Act. Legislators stated the issue should be on next year’s agenda for further study.
“PCI agrees that this issue could use more careful consideration,” Zeman said. “CLUE cannot be compared to the insurance credit scoring issue relative to the scope of legislative and regulatory interest or controversy.” PCI recommended that the legislators review whether a model is necessary on CLUE issue. “We look forward to a more thorough discussion on CLUE at the NCOIL meeting in March, 2005.”
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