Alabama, California, Montana, Rhode Island and Washington will begin requiring insurance companies to file annual statement data as part of a growing effort to make market conduct exams more efficient that now includes 30 states.
The 30 states require companies writing at least $50,000 of premium in their state for private passenger automobile, homeowners, life or annuity premium to file Market Conduct Annual Statement (MCAS) data, according to the National Association of Insurance Commissioners.
“Good market data is required for good market analysis,” said Washington Insurance Commissioner Mike Kreidler, who chairs the Market Regulation and Consumer Affairs (D) Committee. “I am pleased to see states join Washington in this important market regulation project — and I encourage all states to adopt the NAIC Market Conduct Surveillance Model Law to facilitate the modernization of market regulation.”
The data will be due to the participating states by April 30, 2009, for property/casualty data and June 30, 2009, for life and annuity data.
Five states started the MCAS pilot project in 2000 to meet their need for uniform market-related data. One of the states, Ohio, agreed to provide the initial programming and support resources for the pilot project. In 2004, the NAIC membership voted to make the MCAS a permanent project.
Kreeidler said that because of the growing number of states participating in the program, the NAIC now wants to ahve the data-collection efforts centralized to increase the program’s efficiency and effectiveness.
Participating states request MCAS information via a call letter sent to each company. The call letters for the 2008 data year will be sent during November 2007. Every company required to participate in the MCAS project must provide a contact person responsible for the overall project. Companies must submit the required contact information on the Market Conduct Annual Statement Insurance Company Contact Form, located on the NAIC’s Web site at www.naic.org/committees_d_mcas.htm.
Participating states include: Alabama, Arizona, California, Colorado, District of Columbia, Florida, Idaho, Illinois, Indiana, Iowa, Louisiana, Kansas, Kentucky, Maryland, Missouri, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Virginia, Washington, West Virginia and Wisconsin.
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