NAIC/Consumer Liaison Committee
March 29, 2008

The Consumer Liaison Committee met on Saturday, March 29, 2008.

During this meeting, the Consumer Liaison Committee:

· Received introductions of the Funded and Unfunded Consumer Representatives. There are 17 funded and 3 unfunded consumer representatives for 2008.

· Received a presentation on the subprime crisis and insurance scoring. The presentation focused on how the abusive and reckless lending practices have resulted in financial strain for many consumers. Because of insurance scoring, insurers will be increasing premium charges even though auto and homeowners insurance claims are stable or declining. The failure to ban insurance scoring for at least a three year period will result in unfair premium increases for many consumers and windfall profits for insurers. Because of this, insurance regulators were urged to ban the use of credit scores for the next three years and to take a more active role in regulating the use of credit scores.

· Received a presentation on consumer disclosure and transparency. The presentation reported on NAIC involvement with the Privacy Disclosure Notice Form being developed by eight federal agencies. A call was also made for the NAIC to increase its engagement in consumer disclosure and transparency issues. The Market Regulation & Consumer Affairs (D) Committee agreed to take up these issues during 2008.

· Received a presentation on the reporting and public disclosure of insurer market performance data. The presentation described the Home Mortgage Disclosure Act data reporting requirement for lenders, which consists of information on each loan application, including detailed geographic location, price and reason for denial. An analogous reporting program for homeowners insurance was proposed. The reporting of homeowner insurer market performance data was also placed in the larger context of regulatory transparency and public accountability of insurers and regulators and how the collection and public disclosure of market performance data is the essential foundation for market regulation based on market analysis. The Market Regulation & Consumer Affairs (D) Committee will be discussing these issues within the context of data collection for market analysis.

· Received a presentation on the Accountability & Transparency in Medicare Marketing Act of 2007. This presentation provided a brief update on the pending Federal legislation, Accountability and Transparency in Medicare Marketing Act of 2007. If passed, this bill will give states more power to regulate sales and marketing of Medicare Advantage plans and Medicare Prescription Drug Programs.

· Received a presentation on findmyinsurer.org. This presentation focused on the Center for Insurance Research's service to help consumers locate insurers tied to "orphaned policies."

Action Items: There were no action items.