NAIC Legislative Liaison Committee
December 2, 2007
The NAIC Legislative Liaison Committee met on December 2, 2007.
During this meeting, the Legislative Liaison Committee:
- Received a presentation on the System for Electronic Rate and Form Filing (SERFF) from Julie Fritz. The presentation highlighted the goals of SERFF and outlined how those goals are being met. The goals are (1) speed to market, (2) reduced cost, (3) greater uniformity, (4) improved work flow, and (5) better communication. The presentation concluded with a brief example of how filings are prepared under the SERFF interface. It was pointed out that this methodology saved resources for both state regulators and industry.
- Received an update on the Interstate Insurance Product Regulation Commission (IIPRC) from the organization’s Executive Director, Francis Arricale, who focused her comments on ongoing efforts within the states to encourage broader membership. State Representatives Damron (KY) and Kennedy (RI) reiterated their unwavering support for the IIPRC and their commitment to help educate other state legislators and encourage them to join the IIPRC.
- Received an overview of state legislative agendas. Representatives Damron and Kennedy indicated that the two issues of major concern for state insurance legislators during the next year will be market conduct examinations and stranger owned life insurance.
- Received an update on reinsurance initiatives from Commissioner John Oxendine. Oxendine outlined the three recommendations included in the recent Reinsurance Task Force framework, which are (1) mutual recognition, (2) a single state regulator for domestic reinsurers, and (3) a single state regulator for foreign reinsurers.
- Received an update on the efforts of the Producer Licensing Coalition from Commissioner Roger Sevigny. Sevigny announced that the state by state assessment of the reciprocity requirements for producer licensing is underway. Assessments have finished in fifteen states and the remaining states will be reviewed by the end of January 2008. The Coalition expects to have their report finalized early next year.
- Received an overview of various federal insurance initiatives. Brett Palmer provided an update on the status of various legislation regarding natural catastrophe insurance, terrorism risk insurance and HHS funding as well as a review of a number of congressional hearings on a state insurance regulation, credit scoring and Holocaust survivor insurance claims.
- Discussed the recent Insurance Legislators Foundation report, A Study on State Authority: Making a Case for Proper Insurance Oversight, and its recommendations. The recommendations include: (1) increase funding resources and membership of the National Conference of Insurance Legislators (NCOIL), (2) enhance insurance regulators’ authority, (3) increase legislative oversight of insurance regulation, (4) open all NAIC meetings to attendees, (5) expand the interstate compact, and (6) create an independent commission to review insurance regulation. It was noted that state regulators were not consulted in the drafting of the report and Representative Kennedy stated that input from NAIC members would be welcomed as NCOIL reviewed those recommendations.
Action Items: There were no action items.