National Association of Mutual Insurance Companies (NAMIC) testimony convinced state insurance legislators to object to the application of Sarbanes-Oxley to mutual insurers and to not adopt a loss history database model law.
State Affairs Director Neil Alldredge raised NAMIC’s objections before the National Conference of Insurance Legislators at its annual spring meeting in Hilton Head, S.C..
Alldredge testified that applying the provisions of Sarbanes-Oxley to mutual insurers by the National Association of Insurance Commissioners (NAIC) was a violation of legislative authority.
In committee discussion, legislators clearly indicated that they not only objected to the NAIC process, but also to the substance of the proposal.
After hearing Alldredge’s testimony, the NCOIL Executive Committee decided to send a letter to the NAIC objecting to the application of Sarbanes-Oxley to mutual insurers. NAMIC expects the letter to be sent this week.
Alldredge also objected to the treatment of Closed Without Pay claims language of a loss history database model law. NAMIC was the only property/casualty trade association to object to the language. The committee decided to continue to seek changes to the legislation as a result of NAMIC’s objections.
Alldredge also testified on a wide range of issues including rate modernization, market conduct reform, and TRIA reauthorization. Several issues were discussed including model legislation regulating broker compensation.
The NCOIL Executive Committee adopted an amended version of the Broker Compensation Model Act. The legislation requires disclosure when an intermediary receives compensation from both the consumer and the insurer. The language in the NCOIL amendment improves on language contained in a similar amendment adopted by the NAIC in December.
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