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PIA National Lauds Koken, NAIC for Forming Task Force to Examine Commercial Broker Compensation

WASHINGTON, November 8, 2004 - The National Association of Professional Insurance Agents is lauding the National Association of Insurance Commissioners (NAIC) for moving...
November 7, 2004

WASHINGTON, November 8, 2004 - The National Association of Professional Insurance Agents is lauding the National Association of Insurance Commissioners (NAIC) for moving quickly to address public policy issues in the wake of actions by New York Attorney General Eliot Spitzer.

The NAIC has convened an executive task force comprised of 13 member states to address alleged criminal misconduct and violations of existing insurance laws involving insurance companies and insurance brokers. NAIC President Diane Koken said the task force, which she is chairing, is working to develop the facts and coordinate the efforts of state regulators on this critical issue.

In the letter to Koken, PIA expressed support for the work of the task force and encouraged current lawmakers to look to what has already been adopted by other states for use in other parts of the insurance marketplace, as a foundation and starting point in discussing and drafting public policy responses. 

"This builds upon the existing regulatory tools, requirements and authorities that these states have used successfully in these other market areas, providing all states with a consistent approach to which other details may be added for more robust policy and practice requirements for the insurance sector and the benefit of our customers across all lines of insurance," the PIA letter states.

PIA is completing the first phase of an information and policy discussion guide to be shared with the NAIC in the coming week. 

"We look forward to working with you on model solutions involving further refinement and additional requirements to these practices so that we can, with our PIA affiliates and PIA members, carry these needed reforms throughout the country for common adoption," the letter stated.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. Visit PIA at www.PIANET.com