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NAIC Releases Its Annual Report Calling itself the “Home” of Regulation

Those who aren’t keeping up with this may miss the somewhat subtle point that the NAIC is making
March 6, 2012

Those who aren’t keeping up with this may miss the somewhat subtle point that the NAIC is making. On March 3, a fairly routine press release went out announcing the release first digital version of the 2011 annual report of the NAIC. The title is, “NAIC: The Home of U.S. Insurance Regulation.”

NAIC CEO Dr. Therese M. (Terri) Vaughan, PhD., stated: “Given the unique challenges and successes of 2011, we thought it was fitting to use the theme of ‘home’ to illustrate the foundational strength of our regulatory system.”

Simple, right? Only the title was used just days after Rep. Ed Royce (R-Calif.), a senior member of the House Financial Services Committee, asked the NAIC to explain the legal reasoning behind its decision to describe itself as a “standard-setting organization” rather than a trade group. Royce’s request came in a letter to Kevin McCarty, Florida insurance commissioner and president of the NAIC, and Vaughan.

Whatever semantic differences may be at play here, one thing must be remembered: Rep. Royce is a firm advocate of federal regulation of insurance, who once described a proposed optional federal charter (OFC) approvingly as a “first step” to federal regulation. On the other hand, the NAIC has been supportive of our national, state-based system of insurance regulation. PIA supports state regulation of insurance and opposes federal insurance regulation.

Read NAIC's statement on insurance regulation: NAIC 2011: Home of Insurance Regulation (NAIC 3/3/12)

See what Rep. Royce thinks of the NAIC: U.S. Rep Asks NAIC to Explain Status (National Underwriter 2/28/2012)