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PIA National Participates in Fall NAIC Meetings in Washington, D.C.

The National Association of Insurance Commissioners (NAIC) held their fall meetings in Washington, D.C. September 28 - October 1. PIA National attended many...
October 2, 2007

The National Association of Insurance Commissioners (NAIC) held their fall meetings in Washington, D.C. September 28 - October 1. PIA National attended many of the meetings. Regulatory Affairs Committee Chairman Don Flanders, Senior Vice President Patricia Borowski and Director of State Affairs David Eppstein formed the PIA delegation.

Flanders attended at the invitation of New Hampshire Commissioner and NAIC Vice President, Roger Sevigny. His participation in the meetings comes just two weeks after the Regulatory Affairs Committee met in Albuquerque, New Mexico and follows two meetings then-PIA National President Donna Pile held with NAIC Commissioners, staff and industry colleagues to discuss solutions to the lack of uniformity in the non-resident licensing system.

A more detailed report on the results of the NAIC fall meetings will be sent later this week, but for now here's a brief summary.

The National Insurance Producer Registry (NIPR) Board of directors met on Friday, September 28. PIA National holds a voting member seat on the board.  The main focus of the discussion was the reengineering project currently underway that will allow NIPR to facilitate transactions faster while maintaining their current high degree of accuracy.  The board also discussed an innovative new tool that will allow producers to process attachments through the NIPR system.  This new service will allow agents who might have to file supplemental information with departments to do so electronically.

The Surplus Lines Insurance Multi-State Compliance Compact also met on Friday, September 28. Surplus lines brokers need an interstate compact because they face multi-state tax problems.  A state compact would require compliance in the home state for surplus lines placements and mandate a uniform tax allocation formula for all compacting states.  PIA has supported the use of state compacts to achieve efficiency and uniformity in state regulation for many years.  We therefore support an interstate compact for the regulation and taxing of surplus lines brokers. 

The NAIC also held an open hearing on catastrophe modeling. Catastrophe models use computer-assisted calculations to estimate the losses that could be sustained by a catastrophic event such as a hurricane or earthquake.  The hearing discussed the benefits of using these models as well as the potential downside.  Some consumer groups assert that there is little regulation over how these models are used yet they have a great deal of influence over the price of certain policies.  Insurance companies claim restrictions on the use of these models in ratemaking could discourage availability of coverage in catastrophe prone areas.  PIA will continue to monitor this debate; however, we are supportive of innovative tools used by insurance carriers to help them assess the risk they are able to bear, particularly in catastrophe prone areas like the Gulf Coast.