During a conference call of the NAIC D-Committee held on Friday January 20, 2006, the Authorization for Criminal History Record Check Model Act failed when no committee member would make a motion to adopt it and send it to the NAIC’s Executive Committee.

During the committee’s deliberations, a series of motions were made which failed: a motion to delete a central repository provision; a motion to delete an SEC/NASD provision; and a motion to delete carrier officers & directors from the model act’s requirements. A separate motion to make provisions regarding carrier officers and directors optional was approved.

On January 13, PIA National submitted formal comments to the NAIC D-Committee, advising that while PIA has been assisting the NAIC on this issue since 1996, this model had become complicated and convoluted. In our filing, PIA National strongly recommended that the NAIC not consider the model at this time.

What it Means to Agents:  D-Committee essentially took PIA’s advice. This version of the Authorization for Criminal History Record Check Model Act is, for all intents and purposes, dead. However the subject is not, and a new model approach to this issue will be discussed during the upcoming commissioners’ conference February 5-8 in Naples, Florida. It is likely that another version of the model will be attempted by the NAIC, probably directly from the EXCOM level.

PIA National will continue to work with the NAIC to ensure that any fingerprint model that may be developed satisfies the needs of our members. The PIA National Regulatory Affairs Committee wishes to thank PIA members and PIA affiliates for their input regarding the model, which was very helpful in bringing about this result.

January 24, 2006