FOR IMMEDIATE RELEASE

2010 BUDGET BEGINS APPROVAL PROCESS
Budget Reflects Association’s Response to Economic Climate

NATIONAL HARBOR, MD (Sept. 23, 2009) — The National Association of Insurance Commissioners’ (NAIC) proposed 2010 budget began the approval process today, following months of development by NAIC leadership, the Internal Administration (EX1) Subcommittee, the Executive (EX) Committee and executive staff.

“Like all businesses in the current economy, the NAIC has also experienced certain impacts in its budget. In response, we have worked diligently to reduce costs and seek opportunities for revenue enhancement,” said Jane Cline, NAIC President-Elect and West Virginia Insurance Commissioner. “However, the 2010 proposed budget does not in any way compromise or diminish our unwavering commitment to serving regulators as they protect consumers and ensure solvency of the industry. In fact, the proposal reflects a budget that is responsible, realistic and transparent to all interested parties.”

The NAIC budget includes total revenues of $73.6 million and total expenses of $70.9 million, which represent a 0.7% increase and 0.8% decrease, respectively,
from the 2009 budget, for $2.7 million in projected net revenue.

Business and Fiscal Impact Statements are being proposed for three new policy and business initiatives at the NAIC, including:

• Market Conduct Annual Statement: proposal to replace the current Access database filing process with a Web-based front-end application for the collection of 2010 data in 2011 by all states
• Application Development and Testing Tools Expansion: proposal expands existing information technology tools for managing the testing and development of NAIC applications and databases
• Solvency Modernization Webinar: proposal to offer a new NAIC education and training course on Solvency Modernization

A complete version of the NAIC's proposed 2010 budget is available at http://www.naic.org/documents/about_budget_10budget_proposed_budget.pdf.
A public hearing has been scheduled for November 5, 2009, with written comments due by October 23, 2009.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

You are currently subscribed to the “NAIC News Release” electronic service. For information regarding this service, please contact the NAIC Communications Division, 2301 McGee Street, Kansas City, MO 64108, 816-783-8909.

To unsubscribe from NAIC Electronic Services, send a blank e-mail to
NAIC Opt Out services.