The NAIC Insurance Producer Premium Accounts Working Group met by phone last week to review requests by interested parties for changes to the current draft model. A request from a law firm to consider extensive changes that would impose a specific set of obligations on producers that normally would appear in the agency-insurer agreement (as well as currently are handled differently among different insurers) was rejected after much discussion. We anticipate that another draft will be issued for comment early this week, and the model to be adopted by the NAIC Working Group and moved to the full D-Committee for its consideration in September. The NAIC will adopt a model bill on this issue by the end of this year.

August 16, 2005