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NAMIC Expresses Concerns About NAIC Transparency, Growth

The National Association of Mutual Insurance Companies has filed a comment letter expressing concerns about the proposed 2014 budget of the National Association of Insurance Commissioners...
November 20, 2013

The National Association of Mutual Insurance Companies (NAMIC) has filed a comment letter expressing concerns about the proposed 2014 budget of the National Association of Insurance Commissioners (NAIC). The current draft NAIC budget is set at $93 million in operating revenues, a 3.68% increase over the current budget.

A formal comment letter filed by NAMIC Chief Financial Officer James Woody said the 2013 projections in the budget and the 2014 proposal show NAIC “to be on a steady path of self-sustaining growth and expansion, which makes it subject to criticism by those who do not support the preservation of a state-based insurance regulatory system. The best way to counter critics of state regulation and the NAIC is to introduce transparency around NAIC actions and operational/financial decisions and adopt sound and open governance practices.” Woody proposed a budget item to fund an independent consultant who could examine NAIC processes and its policy statement on open meetings. Insurance industry officials have long complained about the NAIC’s level of transparency.

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