The Property Casualty Insurers Association of America (PCI) expressed disappointment recently with the latest direction taken by the National Association of Insurance Commissioners’ (NAIC) Financial Conditions (E) Committee regarding the Insurer Receivership Model Act (IRMA). The NAIC committee’s latest discussion on the proposal took place during a conference call last week.
“PCI is extremely disappointed at the latest round of review on IRMA by the NAIC Financial Conditions (E) Committee,” said Mike Koziol, assistant vice president and counsel for PCI. “After this call, it is hard to carry any hope that the substantive industry proposals and concerns will be satisfactorily addressed at the NAIC meeting in September. In many ways, the proposed model was better prior to this call. Even then, it strongly favored the liquidators in insolvency. Now, the proposal favors liquidators more than ever.”
The almost 80-page document was released in early May as a final draft for exposure and comment. Industry groups were then given less than two weeks to review the model and to formulate comments before swift adoption by the NAIC’s Receivership and Insolvency Task Force.
PCI and others have been diligent in expressing their dissatisfaction with the proposal and have been actively seeking a number of substantive revisions including the inclusion of a large deductible provision, modification of the reinsurance recoverables provisions and modification of immunity provisions to name a few.
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