On Friday, July 11, PIA National President-elect Ken Auerbach told a group of insurance legislators from across the country PIA will continue to work with them to modernize the state system and that they can count on PIA for support in their state on needed reforms. Auerbach’s remarks came during the summer meeting of the National Conference of Insurance Legislators (NCOIL), which was held in New York July 10-13. The NCOIL sessions covered a range of issues including producer licensing, federal regulation, insurance scoring, reinsurance collateral and catastrophe funds.
NCOIL’s State-Federal Relations Committee, chaired by Representatives Greg Wren (AL) and Robert Damron (KY), led a discussion of needed improvements to the state licensing system. Auerbach emphasized PIA’s longstanding opposition to federal preemption of state insurance regulation and our support for a modernized state system.
Just prior to Auerbach’s presentation to the committee, NAIC President Sandy Praeger (KS) told the Committee that the NAIC is still strongly opposed to federal regulation. NAIC President-Elect Roger Sevigny (NH) assured the legislators that the NAIC Producer Licensing Coalition would increase their efforts in the coming months. NIPR President Linda Hall (AK) showed the committee a PowerPoint presentation highlighting the progress made by NIPR.
Auerbach met with NCOIL President Brian Kennedy (RI) and NCOIL Vice President Robert Damron (KY), to discuss our shared goal of preserving and improving state insurance regulation. The three agreed that it is going to be important for PIA and the legislators to work together on making the necessary improvements in the states now.
Insurance Foundation Study Extended - When Auerbach last met with representatives Kennedy and Damron, it was to deliver a contribution from PIA’s Insurance Foundation to NCOIL to help them fund a study on state authority. On the first day of the summer meeting, NCOIL’s special ILF Study Subcommittee met to discuss ways to implement recommendations in the study, including a series of long-term policy changes ranging from increased legislative oversight of insurance regulation to redirecting fees now going to the NAIC from NCOIL itself. After a lengthy discussion on the importance of this groundbreaking study, the legislators unanimously voted to extend the study. The next phase of the study will focus on detailed subjects such as data confidentiality and state compacts.
NCOIL’s Natural Disaster Subcommittee debated a resolution offered by Representative Geller (FL) regarding a national natural disaster plan. PIA submitted comments to strengthen the resolution and make our position clear during the meeting. While several of our positions were included in a compromise draft offered by Representative Keiser (ND), the resolution did not pass.
NCOIL’s State-Federal Relations Committee On July 11, the State-Federal Relations Committee also passed a resolution expressing concern about an NAIC proposal to require filing of market conduct data in conjunction with an insurer’s annual financial statements. The NCOIL resolution noted that no state legislature has required such a fundamental change. It also expressed concerns regarding the NAIC’s authority to collect such market conduct data; the costs of compliance; and confidentiality. NCOIL, the resolution says, believes the NAIC should extend its consideration of the market conduct proposal to allow for further legislative and other input, and commits NCOIL to working with the NAIC and individual state regulators regarding an appropriate collection of market conduct information.
July 16, 2008