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State Insurance Legislators Meet in Nashville, PIA Participates

State legislators from across the country gathered at the National Conference of Insurance Legislators annual meeting in Nashville, Tennessee, on November 21 – 24 to discuss key issues facing the insurance industry...
November 27, 2013

State legislators from across the country gathered at the National Conference of Insurance Legislators (NCOIL) annual meeting in Nashville, Tennessee, on November 21 – 24 to discuss key issues facing the insurance industry. PIA National Assistant Vice President of Regulatory Affairs David Eppstein represented PIA at the meetings.

Commissioners at the NCOIL meetings attended a meeting with NAIC President Jim Donelon (LA). PIA is encouraged by the cooperation between the NAIC and NCOIL because when our state insurance regulators and legislators work together they can accomplish all our insurance regulatory modernization goals without the need for further interference from the federal government. Donelon updated the legislators on the NAIC’s Nov. 20 meeting with President Obama at the White House.

Rep. Jim Cooper (TN) gave the keynote address at NCOIL and provided attendees with a perspective from Capitol Hill. Cooper thanked the state legislators for their public service and encouraged them to run for Congress, saying that we need more good representatives in D.C.

Resolution Passed Supporting State Regulation

The legislators passed a resolution reaffirming support for the U.S. state-based system in international insurance regulatory discussions. It came in response to a recent Financial Stability Board (FSB) report that suggested the U.S. consider a more federalized regulatory approach. The NCOIL resolution requests that all representatives of the U.S. in international insurance regulatory discussions advocate positions that are consistent with U.S. state-based oversight.

PIA supports this resolution, and we appreciate the attention our state legislators are giving to these important international issues.

The legislators also passed a resolution sponsored by Senator Dan Morrish (LA) requesting Congress pass the Homeowners Flood Insurance Affordability Act which will delay the implementation of National Flood Insurance Program (NFIP) changes until two years after the Federal Emergency Management Agency completes the affordability study on the impact of the rate increases. The legislators also vowed to continue to work on state based mechanisms to help consumers protect themselves from the risks posed by floods.

Update on Certificates of Insurance

The NCOIL Property-Casualty Committee, chaired by Representative Matt Lehman (IN), continued its discussion regarding proof of coverage for use in large commercial property transactions. NCOIL passed a model law addressing certificates of insurance with substantial support from PIA. The legislators also crafted a binder model to try to alleviate concerns brought forth by some in the lending community that binders offer inadequate proof of coverage because it lacks basic coverage details and expires in some jurisdictions.

Having previously passed these two models to clarify the use of certificates and binders, the legislators asked the industry to try to alleviate any further concerns through the Association for Cooperative Operations Research and Development (ACORD). PIA supports the ACORD process for creating and/or amending insurance forms and we look forward to working with our industry partners to make sure lenders have access to adequate proof of insurance coverage. Kori Johanson, Chief Compliance and Government Affairs Officer at ACORD, updated the legislators on the latest developments during this meeting.

Representative Greg Wren (AL) assumed the role of NCOIL President during the NCOIL Executive Committee meeting.