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PIA Testifies on Cyber, Flood at NAIC Meetings

PIA’s Counsel and Director of Regulatory Affairs Lauren Pachman testified at the National Association of Insurance Commissioners’ Spring National Meeting in New Orleans, during the meetings of the Cybersecurity Task Force and the Property and Casualty Insurance Committee...
April 21, 2016

PIA’s Counsel and Director of Regulatory Affairs Lauren Pachman testified at the National Association of Insurance Commissioners’ (NAIC) Spring National Meeting in New Orleans, during the meetings of the Cybersecurity Task Force and the Property and Casualty Insurance Committee. At the April 4 Cybersecurity meeting, she discussed PIA’s concerns about the first draft of the Task Force’s Insurance Data Security Model Law.  The Task Force chair, North Dakota Commissioner Adam Hamm, has indicated interest in finalizing the model law by year-end and ultimately making it an accreditation standard.

PIA also advocated for its position at the April 5 Property and Casualty meeting, where Pachman discussed PIA’s position on the future of the National Flood Insurance Program (NFIP) and the possibility of its partial or complete privatization. Also at that meeting, a measure passed to collect data on private insurance policies, including primary, excess, and creditor-placed flood insurance, separately from those that are part of the NFIP, to provide policymakers with additional data on the private flood insurance market as they consider the future of the program. The NFIP is scheduled to sunset on Sept. 30, 2017.

In response to action in the House, the Producer Licensing Task Force will consider action to address the manner in which the state licensing of adjusters is done. The Catastrophe Insurance Working Group reported that the NFIP/Federal Insurance Office/stakeholder meetings will continue as the deadline to reauthorize the NFIP approaches.  During the Executive Committee meeting, in the context of a discussion about the currently-vacant position of NAIC CEO, Louisiana Commissioner Jim Donelon proposed a change to the NAIC’s bylaws that would require a cooling-off period for former members of the NAIC before they may become eligible for hire by the NAIC. Donelon intends to follow up by recommending a change to the NAIC’s bylaws to the Governance Review Task Force.

Other action at the NAIC meetings included the adoption of the National Insurance Producer Registry’s (NIPR) audit committee report, the rollout of a new NIPR logo by its board, and consideration by the Crop Insurance Working Group of the ongoing congressional threat to the federal crop insurance program.

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