NAIC/Consumer Liaison Committee
December 2, 2007
The Consumer Liaison Committee met on Sunday, December 2, 2007.
During this meeting, the Consumer Liaison Committee:
- Received a presentation on Consumer Driven Health Plans. This presentation highlighted that such plans are ambiguous and complex, making it difficult for consumers to predict out of pocket expenses and potentially resulting in less adequate coverage. The presentation concluded with the following recommendations for the NAIC: (1) establish better standards for health insurance contracts; (2) work to standardize the language of insurance contacts; (3) work to standardize the features of these plans; and (4) prohibit unfair terms.
- Received a presentation on Residential Property Insurance Data Disclosures showing the geographic distribution of residential FAIR Plan policies for New York. The presentation illustrated that the distribution has a disparate impact on African-American and Hispanic communities. The presentation concluded with the following recommendations for the NAIC: (1) develop a model residential property insurance data disclosure law to provide consumers with public disclosure to show to whom and where insurers are writing policies and (2) develop a model FAIR Plan Law, which provides positive and negative incentives for private insurers to write policies in traditionally underserved areas.
- Received comments on the Public Accountability of the NAIC, including open meetings, open records and public participation procedures. The following specific issues were raised: (1) the use of executive sessions when not dealing with confidential matters; (2) the failure of the NAIC to file an IRS 990 non profit tax return; and (3) the failure of the NAIC to have public involvement in the development of the model law procedures and conflict of interest statement. The comments concluded with a recommendation for the NAIC to review its current procedures to ensure meetings addressing public policy issues are open to all parties.
- Received an update on the development of the model privacy notice form being developed in response to the Financial Services Regulatory Relief Act. The presentation concluded with a recommendation for the NAIC to actively engage in the privacy notice process with the eight Federal agencies working on the notice form and to provide the leadership to make the model notice form appropriate for insurance.
- Received a presentation on the marketing abuses associated with Medicare Advantage & Prescription Drug Plans. This presentation concluded with a recommendation for the NAIC to discuss and address the following abuses: (1) cross-selling of Medicare products; (2) up-selling from a Prescription Drug Plan to a Medicare Advantage Plan; (3) telemarketing, including cold-calling; and (4) providing cash or other monetary rebates as an inducement for enrollment.
Action Items: There were no action items.