During a recent conference call, Kansas Insurance Commissioner Sandy Praeger, West Virginia Insurance Commissioner Jane Cline, and Oklahoma Insurance Commissioner Kim Holland warned against proposals that would create interstate insurance options that could result in higher costs and destabilize local markets. The interstate plans would permit insurers to circumvent state laws and choose to have their products approved in states with little oversight. “Those plans will ultimately cost more,” Praeger said. “It really destabilizes the market ... and allows for adverse selection and cherry-picking.”

The regulators said large insurers already can write policies across state lines — if they abide by each state's laws and regulations. They also opposed federal oversight of insurance rates, saying states are better able to make those decisions. “If we think the rate’s excessive, we can deny it,” Praeger said.

Insurance Chiefs Warn of Interstate Options (Wichita KS Eagle 2/27/10)

March 9, 2010