Broker Activities (EX) Task Force
Executive (EX) Committee

The mission of the Broker Activities (EX) Task Force is to be the central forum and coordinator of NAIC activities relating to producer compensation disclosure and state inquiries into potential fraud, conflicts of interest and inappropriate activity between insurance producers and insurance companies. Since its inception in late 2004, the Task Force has pursued a three-prong action plan designed to coordinate multi-state interest and inquiries, leverage state expertise and resources and engage consumers.

The first prong of the Task Force’s action plan, encouraging greater transparency in broker compensation, was achieved in December 2004 with the NAIC’s adoption of an amendment to the Producer Licensing Model Act. The Task Force continues to monitor legislative activities related to compensation disclosure.

The second prong of the Task Force’s action plan, coordinating full inquiry and other multi-state activity, continues to be an area of focus for the Task Force. In late 2004, uniform “templates” were created for states to use to query their significant domestic insurers and top brokers. The Task Force has also developed multi-state settlement agreements with industry members to correct anti competitive practices and reimburse policyholders for allegedly inflated pricing.

The third prong of the Task Force’s action plan, enhancing fraud reporting, was achieved in January 2005 with the launch of the Online Fraud Reporting System. This system empowers consumers to report “tips” of unscrupulous business practices for investigation by the states.

2007 Charges

1. Continue to monitor and analyze developments in the marketplace regarding producer compensation issues.
   
2. Continue to serve as a coordinating body for facilitating relevant multi-state examinations, investigations and resolution of issues.