Posted on 15 Jul 2008
The National Conference of State Legislators’ (NCOIL) echoed the concerns expressed by insurers and adopted a resolution that opposes the National Association of Insurance Commissioners’ (NAIC) Market Conduct Annual Statement (MCAS) proposal, according to the Property Casualty Insurers Association of America (PCI). NCOIL’s State-Federal Relations Committee adopted the resolution Friday, July 11, 2008 at its Summer Meeting in New York. Now the resolution will be voted on by the Executive Committee.
The MCAS proposal requires the filing of market conduct data in conjunction with insurer annual financial statements. The resolution, sponsored by Rep. Robert Damron (KY), says that no state legislature has required such a fundamental change. It also expresses NCOIL’s concerns regarding NAIC authority to collect such market conduct data; 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.
PCI has continued to express strong concerns regarding the NAIC proposal and testified in opposition to it during the NAIC Summer Meeting in San Francisco and the Industry Liaison Meeting Tuesday July 1, 2008.
“NCOIL recognizes that there are significant issues and legal problems with this proposal,” said Deirdre Manna, vice president of industry, regulatory and political affairs for PCI. “With NCOIL adding their voice in opposition, we are urging the NAIC to reconsider the proposal and work with the industry in order to get a clear understanding about the harmful impact it would have on insurance companies from a competitive and public disclosure perspective.”
PCI is composed of more than 1,090 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39.8 percent of the nation’s property casualty insurance.