NAMIC Commends Legislators’ Response to Controversial Market Conduct Data Proposal
The National Association of Mutual Insurance Companies (NAMIC) stated that action taken on Friday by state insurance legislators is in the best interests of insurance consumers and companies. At issue is a proposal by the National Association of Insurance Commissioners to require insurance companies to file market conduct data in conjunction with their annual financial statements.
“NAMIC has been highly critical of this proposal, as it could jeopardize the confidentiality of insurers’ information,” said Neil Alldredge, vice president for state and regulatory affairs. “The NCOIL has taken exactly the correct stand on this issue.”
A key panel of the National Conference of Insurance Legislators today adopted a resolution saying the NAIC should extend its consideration of the proposal to allow for further legislative and other input, and committing NCOIL to working with the NAIC and individual state regulators to determine a more appropriate method to collect market conduct information.
Among the concerns outlined in the NCOIL resolution were:
* The NAIC’s authority to collect market conduct data as part of annual statement filing.
* The costs of compliance outweighing the benefits to consumers, insurance companies, regulators, and state legislators.
* The confidentiality of market conduct data, since it has not before been made public.
* No state legislature has delegated public policymaking authority to the NAIC, according to a study by the Insurance Legislators’ Foundation.
The resolution was adopted unanimously by the NCOIL State/Federal Relations Committee and will go the Executive Committee for final approval.
“We commend NCOIL for taking a bold stand on this important issue,” Alldredge said. “We sincerely hope the NAIC will put the brakes on this proposal and give it the scrutiny it deserves.”
Source: Source: NAMIC Press Release | Published on July 14, 2008
Are you retail Agent Looking for a Quote?