FOR IMMEDIATE RELEASE

NAIC ADOPTS 2010 BUDGET

SAN FRANCISCO (Dec. 7, 2009) — Members of the National Association of Insurance Commissioners (NAIC) today adopted its 2010 operating budget.

“We believe the NAIC budget represents a thoughtful and transparent proposal for 2010,” said NAIC President-Elect and West Virginia Insurance Commissioner Jane Cline. “The value of the NAIC to its membership and regulated entities is clear from the State Insurance Regulatory Toolkit – value which far exceeds the annual operating budget. The value of the NAIC’s centralized systems, products and services translate to tremendous efficiencies and cost savings to the regulated industry, greater uniformity in the state regulatory structure and a more coordinated and effective regulatory regime for the purpose of strong consumer protection.” 
 
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 for three new policy and business initiatives at the NAIC include:

• 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

NAIC staff began working on the budget in May and formally presented it to the membership in September. A public hearing was held in November to provide insurance trade associations and consumer representatives, as well as NAIC members, an opportunity to provide comments.

For more information about the NAIC budget, please visit www.naic.org/about_budget.htm.

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.