NAIC/Legislative Liaison Committee

Mission

The mission of the NAIC/Legislative Liaison Committee is to discuss issues of common interest to regulators and state legislators.

NAIC 2008 Summer National Meeting

The NAIC/Legislative Liaison Committee met on Saturday, May 31, 2008. The following state legislators attended: Senator Ralph Hudgens (GA); Senator Delores Kelley (MD); Representative Brian Kennedy (RI); Rep. Ron Peterson (OK) and Representative Larry Taylor (TX). During this meeting, the Committee:

• Received an update on the advancement of the Interstate Insurance Product Regulation Commission (IIPRC) from Commissioner Jane Cline. Cline discussed the continued outreach to non-compacting states, the updated filing statistics and the recent amendment proposed to the IIPRC's Public Access Rule to open spending, withdrawn, and disapproved filings to full public access.

• Received an update on reinsurance initiatives from Commissioner Steve Goldman. Goldman stated that the recent Reinsurance Task Force meeting resulted in significant progress and he remained committed to a finalized proposal by year-end.

• Received an update on the NAIC's efforts on producer licensing from Commissioner Roger Sevigny including the work of the Producer Licensing Working Group, the NARAB Working Group and the NAIC/Industry Producer Licensing Coalition. Sevigny encouraged legislators to help support producer licensing reform by 1) continuing to push the NAIC Producer Licensing Model Act; 2) supporting the NAIC's recommendation that states eliminate the Secretary of State corporation registration requirements as a prerequisite to issuance of business entity insurance license; 3) continuing pursuit of full implementation of the NAIC resident uniform licensing standards; and 4) supporting efforts of trade organizations and regulators to work toward congressional empowerment. Representative Kennedy stated that NCOIL is fully supportive of NAIC's efforts to improve uniformity and reciprocity and offered to draft a model resolution dealing with the Secretary of State issue and producer licensing for consideration at their upcoming meeting.

• Commissioner John Morrison led a discussion on market conduct issues. Concerns were raised by the legislators about their not yet having fully reviewed the market conduct data proposal.

• Senator Kelley stated that NCSL has not taken a formal position yet, but would likely look favorably on the centralization of the data, but might have some concerns about what information was disseminated.

• Commissioner Sandy Praeger and Representative Kennedy discussed working together to bring legislators to the NAIC headquarters to learn more about how the NAIC operates and how we can work together. Senator Kelley stated that NCSL continues to work with matters of mutual concern, such as principles-based reserving and surplus lines reform, and would like to carry on discussing such issues at future meetings.

Action Items:
No actions were taken during this meeting.