Personal Lines Market Regulatory Framework (EX) Working Group
October 25, 2007, November 7, 2007, & November 15, 2007
The Personal Ines Market Regulatory Framework (EX) Working Group met three times by conference call during the quarter. Two-hour conference calls were held on Oct. 25, 2007, Nov. 7, 2007 and Nov. 15, 2007. The Working Group made substantial progress on its efforts to finish work on a white paper containing recommendations for action related to the regulatory framework for personal lines products. During the conference calls, the Working Group:
- Considered comments received on its latest draft of the white paper. Written comments were received in the format requested from Alan Wickman (NE), Rae Taylor (OR), Lee Barclay (WA), the American Insurance Association (AIA), the Center for Economic Justice, Insurance Services Office, Inc. (ISO), the National Association of Mutual Insurance Companies (NAMIC) and the Property and Casualty Insurers of America (PCI). In addition general comments were tendered by the Center for Economic Justice, the Consumer Federation of America and the Empire Justice Center.
- Made a number of changes to the draft white paper and has reached a point where only a few items of dispute remain.
- Notes that there is disagreement regarding its draft related to a section that discusses insurance products as commodities and compares insurance products to other products that consumers purchase in open competitive markets.
- Notes additionally that there is disagreement about a section discussing the economic theory of competitive markets as it relates to insurance.
- Made an assignment to NAIC Staff Economist Davin Cermak to convene economists from the AIA, CEJ and NAMIC to reach a consensus on the commodities and economic theory sections and present a recommendation to the Working Group as soon as possible.