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PIA Participates in NAIC Fall Meeting

The National Association of Insurance Commissioners (NAIC) fall meeting concluded on Sunday in National Harbor, MD just outside Washington, DC...
December 5, 2012

The National Association of Insurance Commissioners (NAIC) fall meeting concluded on Sunday in National Harbor, MD just outside Washington, DC. PIA National assistant vice president of regulatory affairs and staff attorney David M. Eppstein, Esq. attended the meetings, representing PIA.

In addition to insurance regulators, 24 legislators from 19 jurisdictions joined the meeting to participate in the discussions. The legislators and regulators discussed many issues of importance to independent agents including natural catastrophe policy, licensing efficiency and health exchanges.

On Sunday, December 2, the NAIC Property and Casualty Insurance Committee, chaired by Mike Chaney (MS), held a hearing on natural catastrophe issues. The committee examined reactions to recent catastrophes and ways industry and regulators can work together to benefit consumers. PIA recently passed a natural catastrophe resolution and is working with all interested parties to continue developing a coordinated national natural catastrophe plan.

The Producer Licensing Task Force, chaired by Commissioner Roger Sevigny (NH), passed several new business entity standards that should help states become more uniform in their regulation of producer licensing. PIA supported the new standards that include not requiring individual agency branch locations to be licensed. Non-resident states should also not require business entities to submit organizational documents or register as a foreign corporation as a condition of obtaining or maintaining a non-resident insurance license. PIA also supports electronic licensing as a means to facilitate further efficiency.

The NAIC Health Committee, chaired by Commissioner Sandy Praeger (KS), continues to discuss implementation of the Affordable Health Act (ACA). The NAIC has been assisting states who wish to move forward with an exchange by providing guidance on suggested best practices. PIA National will continue to work with our affiliates in areas interested in establishing an exchange to make sure agents are included and can continue to be compensated fairly.

PIA wishes Terri Vaughan well as she transitions into a new phase of her career. We were thrilled to see her selected as the CEO of the NAIC and we are sorry to see her go but she left the NAIC a better organization than when she started and we commend her for her great work. Dr. Vaughan released a statement that included strong support for state regulation:

“Those of us who value state regulation appreciate its benefits, but the system will always be judged by whether the benefits outweigh the costs. In an increasingly global world, there will continue to be pressure to have a single decision maker in the U.S. It is my fervent hope that U.S. insurance regulators will resist that call, while doing your best to strengthen collaboration and streamline and eliminate unnecessary inefficiencies. Whether the system survives depends on you and your ability to work together.” We at PIA could not agree more.

The National Conference of State Legislatures (NCSL) is scheduled to hold their Fall Forum in Washington DC. December 5-7. PIA National will be there as the legislators discuss health implementation, the farm bill, natural catastrophes and more.