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NCOIL Takes Steps to Defend State Insurance Regulation

The National Conference of Insurance Legislators unanimously adopted several resolutions during their July 13 Executive Committee Meeting...
July 16, 2014

The National Conference of Insurance Legislators (NCOIL) unanimously adopted several resolutions during their July 13 Executive Committee Meeting. The three resolutions seek to strengthen the role of state insurance regulators and legislators in international insurance issues.

Legislators adopted a resolution regarding the involvement of states in the development of international capital standards. The resolution on capital standards cautions against imposing capital requirements on U.S. companies that may erode policyholder protections.

“There is significant and understandable concern that foreign entities may create a one-size-fits-all international capital standard that would fail to recognize jurisdictional differences and successes, including the U.S. approach, and would do little to effectively prevent future financial disasters,” said State Sen. James Seward (NY), chair of the International Issues Task Force – Capital Standards Working Group. “Our resolution is an important step to address these concerns, but it is just our first.”

Another resolution voiced strong support for state sovereignty in global trade negotiations.

“State legislators need to be heard in international dialogues, particularly when it comes to initiatives that may be imposed upon the states, since legislators are the officials who effect insurance laws that govern markets around the country,” said NCOIL President Neil Breslin (NY), who chairs the group’s International Issues Task Force. “Acting on behalf of state legislators, NCOIL will continue to press the importance of this with state, federal, and international entities ongoing.”

A third resolution sponsored by Sen. Jason Rapert (AR), chair of the International Issues Task Force – Coordination and Transparency Working Group, called for the creation of a meaningful mechanism for state stakeholders to participate in international insurance discussions.

PIA is represented on the Advisory Council to the NCOIL International Issues Task Force and the NCOIL Coordination and Transparency Working Group by Jennifer Webb, PIA National Counsel and Director of Regulatory Affairs.

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