Posted on 19 Oct 2010
The American Insurance Association (AIA) will emphasize the importance of promoting regulatory effectiveness and efficiency at the National Association of Insurance Commissioners’ (NAIC) fall meeting in Orlando, Florida this week.
AIA is urging the NAIC and individual state insurance commissioners to proactively respond to national and international regulatory developments that compel the need for greater regulatory streamlining. Commercial lines rate and form modernization, an AIA priority, serves as one of the many examples that will be cited at the fall meeting.
“American businesses, to be globally competitive and create new jobs, must have prompt access to insurance coverage that meets their needs,” said David F. Snyder, AIA vice president and associate general counsel. “Yet the current regulatory system burdens the commercial insurance process with repetitive filing requirements and differing state-to-state standards. Modernization of commercial rate and form regulation ought to be a common goal for the NAIC, commissioners and insurers alike.”
Additionally, AIA plans to raise the issue of property-casualty commercial lines rate regulation modernization at the NAIC’s Industry Liaison meeting.
AIA believes that commercial lines modernization encourages greater market competition and enables insurers to more quickly respond to businesses’ insurance needs. Enhancing regulatory effectiveness and efficiency across the property-casualty commercial and personal lines markets would ultimately benefit consumers, employers, regulators and insurers alike.
“AIA is appreciative of the efforts to bring greater uniformity to the business entity licensing and appointments process,” said Pam Young, AIA associate general counsel and director, surplus lines. “But, it will ultimately require consensus to better facilitate their adoption across the country. Achieving uniformity will greatly reduce the current administrative burden of complying with a multitude of differing jurisdictional licensing standards.”
Also scheduled at the fall meeting are discussions at the Producer Licensing (EX) Task Force meeting. AIA and other trades have joined producer organizations in urging several new additions to the NAIC's producer licensing "Uniform Standards" to simplify and create greater uniformity in the business entity licensing process.
The NAIC’s Fall 2010 National Meeting runs from October 18 – 21 in Orlando, Florida.