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NAIC to Hold Quarterly Meeting

The National Association of Insurance Commissioners (NAIC) will hold its Fall quarterly meetings in Chicago on Sept. 13 through 16. Many of the issues that...
September 10, 2003

The National Association of Insurance Commissioners (NAIC) will hold its Fall quarterly meetings in Chicago on Sept. 13 through 16. Many of the issues that NAIC will take up will be of particular interest to PIA members and affiliates. These issues include:

  • Producer Licensing Uniformity:  While most states have passed legislation based on the NAIC Producer Licensing Model Act, the majority has a few state-based idiosyncrasies or interpret identical provisions differently.  The NAIC Producer Licensing working group will again meet to identify and hopefully begin to resolve these difference, particularly as they pertain to non-resident licenses.
  • Fingerprinting of Producers:  There continues to be great pressure to require criminal background checks of producers based on their fingerprints. The FBI and NASD will be present at an NAIC producer working group to address this topic. The NAIC has encouraged all NAIC members to send a representative to this meeting, regardless of whether that jurisdiction is a member of the working group.
  • Continuing Education Requirements:  The NAIC is attempting to standardize continuing education requirements across state lines. At present, there are many differences from state to state, including what constitutes "an hour" of CE, the number of hours required, the time period producers have for fulfilling the requirement, the types of classes that qualify for CE and what types of courses producers must take in order to maintain the different types of licenses.
  • Premium Pass-Through Accounts: With pressure mounting from the FBI and US Treasury (based on the Patriot Act) the NAIC Antifraud working group will be reviewing and taking comments on a preliminary draft model act on premium pass-through accounts. The model incorporates many modifications suggested by PIA on earlier drafts. PIA submitted additional suggestions last week.
  • Insurance Scoring:  Last week, the NAIC announced that its Insurance Scoring Working Group will meet to discuss conducting a study regarding "whether or not credit-based insurance scores are correlated with selected demographic characteristics."  This proposed study has been roundly criticized by the industry.  The American Insurance Association (AIA) asserts that the proposal is based on "both a shoddy methodology and disturbingly biased assumptions about the ability of minorities and other demographic groups to manage their personal affairs."
  • Other Issues:  Several other issues of interest to PIA members will be considered during the NAIC meetings, including market conduct, implementation of the Patriot Act, terrorism insurance, and regulatory modernization.

What It Means to Agents:  Many of the issues that NAIC will be debating later this week may result in model laws or studies that will be seen in the states in 2004.  Patricia Borowski and Alyssa Keehan will be attending the meetings and will provide a comprehensive report to PIA members.