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NCSL Developing Statement on P&C Regulation

The National Conference of State Legislatures (NCSL) Executive Committee Task Force to Streamline and Simplify Insurance Regulation will give its final recommendations for modernizing insurance...
July 8, 2003

The National Conference of State Legislatures (NCSL) Executive Committee Task Force to Streamline and Simplify Insurance Regulation will give its final recommendations for modernizing insurance regulation during NCSL's summer meetings during the week of July 22.

In preparation for that meeting, the task force has held several conference calls to finalize its recommendations. These recommendations include suggested amendments to NAIC's Interstate Insurance Product Regulation Compact (which would cover life insurance, annuities, disability income, and long-term care insurance) as well as a Statement of Principles for the Regulation of Property and Casualty Insurance. The Principles reaffirm NCSL's commitment to state regulation of insurance: encourage state legislators to consider product regulation systems that rely increasingly on competitive market forces to determine rates and promote introduction of new products; and urge state legislators to support their insurance commissioner's effort to improve market regulation and anti-fraud efforts.

What It Means to Agents: As NCOIL and NCSL wrap up their work on the NAIC's proposed interstate compact, these organizations are redirecting their attention to regulation of the P&C sector. They, along with the NAIC, intend to document for Congress that the states remain the best regulators of insurance and that the states can streamline the regulatory process while maintaining appropriate consumer protections.