Posted on 31 Jul 2009
The National Association of Insurance Commissioners (NAIC) utilizes pilot projects to improve the efficiency of company licensing regulatory review processes. This type of state-based collaboration addresses the needs of the marketplace while ensuring local consumer protection.
Through the expedited licensing pilot project, the NAIC seeks to streamline state-specific application requirements, including the need for hard copies of forms and supplemental information involved in the Uniform Certificate of Authority Application (UCAA). UCAA provides a standardized application process for insurers seeking to do business in multiple states.
“State regulators use these pilot projects to provide feedback on the licensing process and to help identify ways to make that process more efficient and effective,” said Roger Sevigny, NAIC President and New Hampshire Insurance Commissioner. “The expedited licensing pilot project provides the necessary steps towards promoting and maintaining competitive, healthy markets. Through this successful program, the NAIC will continue to assist eligible insurance companies by facilitating their swift foray into the marketplace during this critical time of need.”
Essent Guaranty, Inc., a mortgage guaranty company licensed in Pennsylvania, was recently approved as a pilot project UCAA electronic application.
“Providing consumers with an array of viable options for their insurance needs is a priority for state regulators,” said Joel Ario, Pennsylvania Insurance Commissioner. “In addition to assisting residents in Pennsylvania, the NAIC’s expedited licensing project will enable Essent to serve potential home buyers nationwide.”
Applicant companies in the pilot project must agree to use the UCAA electronic application and are asked to provide feedback on how the process is working. The NAIC’s National Treatment and Coordination Working Group then considers the matter and votes on whether to accept an application as a pilot project.