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NCOIL Considers Resolution on Settlements as Public Policy, Auerbach on Panel

On July 20, the State-Federal Relations Committee considered a proposed Resolution Concerning the Recent Use of Legal Settlements as Public Policymaking Instruments in the Insurance...
July 31, 2007

On July 20, the State-Federal Relations Committee considered a proposed Resolution Concerning the Recent Use of Legal Settlements as Public Policymaking Instruments in the Insurance Arena, sponsored for discussion by Rep. Greg Wren (AL) and Rep. Rich Golick (GA).  The resolution, among other things, expresses concern regarding the public policy implications of recent legal settlements with insurers and reaffirms the authority of state legislators to set insurance public policy. 

PIA National strongly supports this resolution and voiced our support at the meeting.  This proposed NCOIL resolution is the perfect vehicle for state legislators to affirm that the authority to implement insurance policy changes is theirs alone. NCOIL decided to postpone consideration of this resolution until their annual meeting this fall.  

PIA's Vice President and Treasurer, Ken Auerbach presented PIA's our views on the dangers of using legal settlements to alter and/or establish insurance regulations during a panel discussion on July 21. The discussion was scheduled to be general in nature, but the panelists focused on the recent case in which some AGs and regulators were attempting to impose new disclosure procedures on producers. 

Auerbach said that Legislation via settlement agreement is a bad way to make public policy, has none of the checks and balances of legislatures and undermines state sovereignty.  His message was well received by an audience consisting mainly of supporters of state regulation.

PIA's Auerbach Says Main Street Agents Being Unfairly Penalized By Mega-Broker Settlement Agreements (PIA Press Release, July 23, 2007)