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Kreidler Proposes More Power for Larger States in NAIC

Washington State Insurance Commissioner Mike Kreidler is proposing that the National Association of Insurance Commissioners (NAIC) scrap the concept of one-state, one vote and go...
November 14, 2006

Washington State Insurance Commissioner Mike Kreidler is proposing that the National Association of Insurance Commissioners (NAIC) scrap the concept of one-state, one vote and go to a system of proportional representation that would give bigger states more power in the organization. Speaking to the Property Casualty Insurers Association of America's (PCI) annual meeting, Kreidler said the shift would make the organization, "much more responsive to large premium states," and that without it, the NAIC cannot remain a viable regulatory group and avoid efforts to shift control to a federal regulator. "You can't have the Northern Marianas Islands with the same vote as the 19 million population of New York. It isn't reasonable," he remarked.

What It Means to Agents:  While Kreidler's idea should receive serious discussion, it does not necessarily follow that giving larger states more clout would necessarily speed the process of modernization. In the past, smaller and midsize states have often been quicker to implement reforms than larger states. Then, there's the basic fairness issue of whether larger states should be able to impose changes on smaller states simply because they're larger.

Give Big States More Clout: Kreidler (National Underwriter 11/9/06)