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PIA Lauds NAIC Endorsement of TRIA Renewal

The National Association of Insurance Commissioners (NAIC) Government Relations Leadership Council unanimously passed a resolution supporting the reauthorization of the Terrorism Risk Insurance Act (TRIA), which is set to expire in December 2014...
September 5, 2013

The National Association of Insurance Commissioners (NAIC) Government Relations Leadership Council unanimously passed a resolution supporting the reauthorization of the Terrorism Risk Insurance Act (TRIA), which is set to expire in December 2014. The action came during the NAIC’s summer meeting in Indianapolis.

PIA National President Andrew C. Harris attended the meetings along with Assistant Vice President of Regulatory Affairs David Eppstein, Esq. PIA National also supports the reauthorization of TRIA and appreciates the NAIC’s resolution, which followed a similar resolution passed by the National Conference of Insurance Legislators (NCOIL) during its summer meeting. We would like to see Congress address this issue well before the current TRIA program expires, so we can avoid market disruptions.

“We strongly urge members of Congress to reauthorize this critical piece of legislation,” said NAIC President-Elect and North Dakota Insurance Commissioner Adam Hamm. “In addition to providing essential coverage for commercial policyholders, this federal backstop remains an invaluable part of the industry’s ability to preserve its financial protection and maintain risk management.”

Also during the NAIC meetings:

NAIC Praises GAO Report: The NAIC’s Financial Policy and Legislation Counsel Tony Cotto repeatedly referenced the recent Government Accountability Office (GAO) report analyzing how the insurance industry weathered the recent financial crisis (see previous item). Cotto noted that this was the most favorable GAO report regarding the success of state insurance regulation and that it was great news that GAO recognizes the NAIC’s expertise on insurance matters. PIA was instrumental in working with Congress to facilitate the production of this GAO report and we are pleased with the recognition the insurance regulators received from the GAO that their stewardship helped mitigate the effects of the financial crisis on the insurance industry.

The Interstate Insurance Product Regulation Commission (IIPRC) also met in Indianapolis and welcomed Arkansas and Montana as its newest members. Arkansas enacted the Compact legislation in April, which became effective in August, so companies can now add Arkansas to new, pending and previously approved product filings as of August 29.
With the help of State Sen. Fred Thomas (R), a past president of PIA National, Montana also enacted the Compact legislation, which will become effective in October for life and annuities uniform standards and product lines.

The IIPRC now has 43 Compacting states, including Puerto Rico, representing a combined 72% of the nationwide premium volume written for asset-based insurance products, including life, annuities, long-term care and disability income.

The Producer Licensing Task Force, chaired by Commissioner Roger Sevigny (NH), discussed the role of navigators and producers under the Affordable Care Act (ACA). The regulators agreed that in light of new regulations, their white papers governing this subject should be updated. PIA will be involved in this process as the NAIC moves forward with further guidance for states on how to best implement provisions of the ACA.

The NAIC Property and Casualty Insurance Committee, led by chairman Commissioner Mike Chaney (MS), received a presentation from Brad Kading with the Association of Bermuda Insurers and Reinsurers (ABIR) and Dennis Burke with the Reinsurance Association of America (RAA) testified that reinsurance capacity is at a very healthy level, and the ability to diversify risk worldwide helps reduce insurance costs.

Regulators heard updates from New Jersey and Rhode Island on Hurricane Sandy claims. The vast majority of claims are now closed. A couple of takeaways include the high percentage of auto losses and that many people, particularly flood claimants, thought they had more coverage than they did.
: The National Association of Insurance Commissioners (NAIC) Government Relations Leadership Council unanimously passed a resolution supporting the reauthorization of the Terrorism Risk Insurance Act (TRIA), which is set to expire in December 2014. The action came during the NAIC’s summer meeting in Indianapolis.

PIA National President Andrew C. Harris attended the meetings along with Assistant Vice President of Regulatory Affairs David Eppstein, Esq. PIA National also supports the reauthorization of TRIA and appreciates the NAIC’s resolution, which followed a similar resolution passed by the National Conference of Insurance Legislators (NCOIL) during its summer meeting. We would like to see Congress address this issue well before the current TRIA program expires, so we can avoid market disruptions.

“We strongly urge members of Congress to reauthorize this critical piece of legislation,” said NAIC President-Elect and North Dakota Insurance Commissioner Adam Hamm. “In addition to providing essential coverage for commercial policyholders, this federal backstop remains an invaluable part of the industry’s ability to preserve its financial protection and maintain risk management.”

Also during the NAIC meetings:
NAIC Praises GAO Report: The NAIC’s Financial Policy and Legislation Counsel Tony Cotto repeatedly referenced the recent Government Accountability Office (GAO) report analyzing how the insurance industry weathered the recent financial crisis (see previous item). Cotto noted that this was the most favorable GAO report regarding the success of state insurance regulation and that it was great news that GAO recognizes the NAIC’s expertise on insurance matters. PIA was instrumental in working with Congress to facilitate the production of this GAO report and we are pleased with the recognition the insurance regulators received from the GAO that their stewardship helped mitigate the effects of the financial crisis on the insurance industry.

The Interstate Insurance Product Regulation Commission (IIPRC) also met in Indianapolis and welcomed Arkansas and Montana as its newest members. Arkansas enacted the Compact legislation in April, which became effective in August, so companies can now add Arkansas to new, pending and previously approved product filings as of August 29.
With the help of State Sen. Fred Thomas (R), a past president of PIA National, Montana also enacted the Compact legislation, which will become effective in October for life and annuities uniform standards and product lines.

The IIPRC now has 43 Compacting states, including Puerto Rico, representing a combined 72% of the nationwide premium volume written for asset-based insurance products, including life, annuities, long-term care and disability income.

The Producer Licensing Task Force, chaired by Commissioner Roger Sevigny (NH), discussed the role of navigators and producers under the Affordable Care Act (ACA). The regulators agreed that in light of new regulations, their white papers governing this subject should be updated. PIA will be involved in this process as the NAIC moves forward with further guidance for states on how to best implement provisions of the ACA.

The NAIC Property and Casualty Insurance Committee, led by chairman Commissioner Mike Chaney (MS), received a presentation from Brad Kading with the Association of Bermuda Insurers and Reinsurers (ABIR) and Dennis Burke with the Reinsurance Association of America (RAA) testified that reinsurance capacity is at a very healthy level, and the ability to diversify risk worldwide helps reduce insurance costs.

Regulators heard updates from New Jersey and Rhode Island on Hurricane Sandy claims. The vast majority of claims are now closed. A couple of takeaways include the high percentage of auto losses and that many people, particularly flood claimants, thought they had more coverage than they did.