Market Regulation and Consumer Affairs (D) Committee

The following task forces and working groups report to the Market Regulation and Consumer Affairs (D) Committee:

• Antifraud Task Force
• Consumer Connections Working Group
• Market Actions Working Group
• Market Analysis Procedures Working Group
  • Market Analysis & Research Development Focus Group
• Market Conduct Examination Standards Working Group
• Special Accreditation Standards Working Group

The mission of the Market Regulation and Consumer Affairs (D) Committee is to monitor all aspects of the market regulatory process. This includes overseeing (1) the collection of market data, (2) the Market Information Systems, (3) automated applications, (4) the use of desk audits, examinations, interrogatories, investigations and other resources for monitoring market activities, and (5) the analysis of data relevant to market issues. In addition, the Committee will help identify and develop uniform regulatory standards and solutions to problems related to market issues. As part of this function, the Committee will facilitate interstate communication and coordinate collaborative state regulatory actions. The Committee will also review and make recommendations regarding the underwriting and market practices of insurers and producers as those practices affect insurance consumers, including availability and affordability of insurance.

Ongoing Support of NAIC Programs, Products, or Services:

1. Finalize policy recommendations regarding centralized data collection and storage at the NAIC and monitor implementation— Essential
2. Finalize formal accreditation standards for market regulation— Essential
3. Appoint a Market Actions Working Group of 16 individuals to facilitate interstate communication and coordinate collaborative state regulatory actions— Essential
4. Appoint a Market Analysis Procedures Working Group to identify, develop, prioritize and coordinate data collection and analysis techniques, including enhancements to the NAIC’s Market Information Systems, the Market Conduct Annual Statement and other centralized data collection techniques— Essential
5. Appoint a Market Conduct Examination Standards Working Group to develop uniform market regulatory procedures and core competencies— Essential
6. Appoint a Consumer Connections Working Group to: (1) provide a forum for dialogue among the state consumer service representatives to share best practices and enhance consumer advocacy efforts; (2) provide a forum for dialogue among state consumer service representatives, consumer groups, and industry regarding current marketplace issues; and (3) provide policy oversight for the NAIC’s Consumer Information Source.— Essential
7. Monitor activities of the Antifraud (D) Task Force— Essential
8. Monitor the underwriting and market practices of insurers and producers, and conditions of insurance marketplaces, including urban markets, to identify specific market conduct issues of importance and concern and hold a public hearing on these issues at the NAIC Fall National Meeting— Important

New Objectives and Goals (representing new NAIC programs, services, or initiatives) :

1. Work collaboratively with the Property and Casualty (C) C ommittee to conduct a public hearing to:
• Define what constitutes a credit-based insurance score;
• Evaluate how insurers use credit-based insurance scores; and
• Determine how current economic conditions have affected policyholder premiums related to credit-based insurance scores.

Provide a report documenting findings and including recommendations for regulatory or legislative action, if warranted. Complete the report by the 2009 Fall National Meeting.