The American Insurance Association (AIA) said it looks forward to an open dialogue with state legislators regarding the recent hurricanes and their ramifications for the insurance industry during the annual meeting of the National Conference of Insurance Legislators (NCOIL) Nov. 17-20 in San Diego.
Most of NCOIL’s committee meetings will include a discussion of how the hurricanes affected particular segments of the marketplace, and a natural catastrophe seminar is scheduled for Nov. 19. “We welcome a constructive discussion with legislators on what can be learned from the recent spate of natural disasters,” said Raymond Farmer, AIA assistant vice president, Southeast Region.
“NCOIL revised its agenda for this meeting to focus on the horrendous effects of Hurricanes Katrina, Rita and Wilma, which is certainly appropriate, but there are other matters of importance to the industry that will be discussed at this NCOIL session as well,” explained Farmer.
The NCOIL Credit Scoring Model Act is up for reauthorization, which NCOIL’s bylaws require every two years, noted David Snyder, AIA vice president and assistant general counsel. “The model preserves the benefits of using credit information, while also responding to concerns that have been raised. This model has been adopted by more than half the states, and is one of NCOIL’s most successful efforts. We have urged that it be reinstated for the next two years.”
AIA is also concerned about a proposed Certified Aftermarket Crash Parts Model Act, which will be considered during this meeting. “We will not be supportive of any action that restricts competition in auto repair. Most states currently allow competition, which is important to maintain because it helps hold down the cost of auto repairs and physical damage coverage – costs that make up nearly 50 cents of every auto insurance premium dollar,” Snyder stated.
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