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NAIC Winter Meetings

PIA attended the winter meetings of the National Association of Insurance Commissioners (NAIC) December 3-6 in Chicago. PIA National Senior Vice President Patricia A. Borowski...
December 13, 2005

PIA attended the winter meetings of the National Association of Insurance Commissioners (NAIC) December 3-6 in Chicago. PIA National Senior Vice President Patricia A. Borowski and Director of State Affairs David Eppstein represented PIA, participating in sessions on key issues. Developments from the NAIC sessions in brief:

  • The D-Committee voted to continue work on the NAIC fingerprint and background checks models, with a full plenary vote scheduled in February.
  • The D-Committee will continue work on the Insurance Producer Premium Account model, as well.
  • The NAIC Task Force on Natural Catastrophes issued its first draft concept paper.  It will continue to work on a proposal. Elements will include:
    1. All natural catastrophes will be covered by this proposal, to include flood insurance;
    2. Insurers would be required to engage in the primary level of coverage for all natural catastrophes and with a mandated policy form (more than less) for homeowners;
    3. All states secondary level of attachment - not regional;
    4. The natural catastrophe proposal would not include TRIA, and will permit the usual and customary exclusions on mandatory policy per industry standards;
    5. Mitigation by local, state and federal entities to be "encouraged;"
    6. Recognizes the need for realistic rates, but balances the issues of uninsured and availability that currently plague natural catastrophe.

What It Means to Agents:  The actions by the D-Committee were in line with PIA's comments filed in advance advising that neither the fingerprint model nor the premium account model are ready for adoptive consideration and that both need more work.

PIA will publish a special edition of PIA National Newsline on Thursday, December 15 with a detailed wrap-up of the NAIC Winter meetings.