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NAIC Seeks Talks with State Lawmakers On Its Controversial Commission Proposal

The National Association of Insurance Commissioners (NAIC) is saying it wants to continue discussions with two groups of state lawmakers that have criticized its proposal...
January 13, 2010

The National Association of Insurance Commissioners (NAIC) is saying it wants to continue discussions with two groups of state lawmakers that have criticized its proposal for a national insurance regulatory commission. The NAIC has called for the creation by Congress of a National Insurance Supervisory Commission (NISC). States would join the commission consisting of regulators, which would develop uniform regulatory standards in certain subject matters that states would later enact. But for states that fail to comply with the national standard, there would be federal preemption through a federal insurance office.

The NAIC's proposal has drawn sharp opposition from both the National Conference of Insurance Legislators (NCOIL) and the National Conference of State Legislatures (NCSL).

In a December letter to the NAIC, NCOIL officers wrote, "We see little, if any, role for legislators and other state officials who have partnered with you over these many years to ensure the health and welfare of consumers and insurance businesses in the states. Your willingness to turn your back on the state-based system and join with the federal government to secure a seat at the proverbial table is alarming."

The NCSL's Communications, Financial Services and Interstate Commerce Committee also last month unanimously voted to move forward on a working draft opposing the NISC. The NCSL draft calls the NISC proposal "a premature and misguided effort that will not appease those who only desire full federal control of the business of insurance." Committee Chairman and Rhode Island State Rep. Brian Patrick Kennedy said committee members "expressed extreme concern" about the NAIC plan and charged that the NAIC was "tackling this issue on their own and failing to address any input provided to them." Kennedy said legislators believe the best course would be to scrap the NAIC plan and "allow a neutral organization to draft a working document."

NAIC Seeks State Lawmaker Talks (National Underwriter 1/8/10)

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