NAIC Legislative Liaison Committee
March 29, 2008
The NAIC/Legislative Liaison Committee met on Saturday, March 29, 2008.
During this meeting, the Committee:
- Received an update on the advancement of the Interstate Insurance Product Regulation Commission (IIPRC) from Commissioner Jane Cline . Cline began by welcoming Wisconsin, the newest member of the IIPRC. She also noted the IIPRC’s newly adopted ethics code, the latest filing statistics and introduced the new IIPRC staff. Representative Brian Kennedy requested that efforts be made to have Fran Arricale, Executive Director of IIPRC, testify at the anticipated House Financial Services Subcommittee Hearing on insurance regulation on April 16, 2008.
- Received an update on the efforts of the Producer Licensing Coalition from Commissioner Roger Sevigny. Sevigny announced that the recent state-by-state assessment has been completed and reviewed the findings. He also noted that the NARAB Working Group has been reconstituted and the NAIC continues to review the federal legislation on this issue. Legislative attendees requested a summary of the Coalitions efforts, specifically identifying those areas that legislators can help reform producer licensing.
- Received an overview of the National Insurance Producer Registry and its efforts to automate and streamline the producer licensing process from Director Linda Hall. Hall described how NIPR operates and how efforts to increase uniform state participation are proceeding.
- Received an update on reinsurance initiatives from Commissioner Steve Goldman. Goldman stated that the recent Reinsurance Task Force framework has been adopted and the task force continues to meet to address outstanding issues. The legislators in attendance requested the memo outlining the efforts of the most recent meeting of the task force which examined regulation of domestic reinsurance companies.
- Received an update on the national treatment of Berkshire Hathaway Assurance from Commissioner Sean Dilweg. Dilweg announced that the national application with uniform terms is moving forward quickly with 44 states approving the license to date for the newly formed financial guaranty insurance company.
- Received an update on principles-based reserving for life insurance from Commissioner Susan Voss. Voss stated that the NAIC continues to move forward with strong deliberation on this important issue and that as we move forward; we will require cooperation with legislators.
- Received an overview of various federal insurance initiatives. Ethan Sonnichsen provided an update on the status of various legislation regarding the creation of the National Association of Registered Agents and Brokers (NARAB), the restriction of use of credit scores in underwriting and rating of personal auto and homeowners coverage, reauthorization of the National Flood Insurance Program, and amending the Liability Risk Retention Act to include commercial property coverage.
Action Items:
1. No actions were taken during this meeting.