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New NAIC Model Law Framework

The recent NAIC meeting was the first where the NAIC's new model law process was implemented. The NAIC's Executive Committee adopted a new Model...
June 12, 2007

The recent NAIC meeting was the first where the NAIC's new model law process was implemented.  The NAIC's Executive Committee adopted a new Model Law Development Framework earlier this year in an effort to streamline the model law process and better align it with membership priorities and initiatives.

The new Framework calls for the parent committee and Executive Committee to approve, by simple majority vote, the development of a Model Law before drafting begins. To be approved, the Model Law must involve a national standard that requires uniformity amongst all states and receive the commitment of significant regulator and association resources to educate, communicate and support its state implementation.

If the issue or matter does not meet the Model Law criteria, it will be developed as a Guideline, and will range in scope from laws, regulations, best practices, bulletins and other guiding principles that states may use though do not necessarily require uniform adoption.

There was some confusion amongst the regulators and interested parties at the meeting as to exactly how this new procedure will affect the model law process. PIA will continue to monitor the effect of this new policy and comment as needed.