NAIC/IAIABC Joint (C) Working Group
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The NAIC/IAIABC Joint (C) Working Group met on June 13, 2009.

During the meeting, the NAIC/IAIABC Joint (C) Working Group:

• Received a first exposure of “Implementation Commentary,” a white paper to be of assistance to states in implementing the Guidelines for Regulations and Legislation on Workers’ Compensation Coverage for Professional Employer Organization Arrangements (NAIC PEO Guidelines). The development of the paper is considered important due to the complexity of the NAIC PEO Guidelines, adopted in 2007, and due to the number of challenges regulators face today pertaining to PEO matters. It was announced that a thorough vetting of the draft paper is to be scheduled for discussion by the Professional Employer Organizations Model Law Working Group by or before the Fall National Meeting.

• Received a first exposure draft of the National Conference of Insurance Legislators (NCOIL) independent contractor model law titled “Employee Misclassification Workers’ Compensation Coverage Model Act.” It was noted that NCOIL’s decision to draft the model law was in large part motivated by that organizations review of the NAIC/IAIABC Joint Working Group independent contractor white paper recently adopted by both the NAIC and the International Association of Industrial Accident Boards and Commissions (IAIABC) and titled An Overview of Workers’ Compensation Independent Contractor Regulatory Approaches.

• Received an update from the Large Deductible Study Implementation Working Group reporting on progress made in drafting its Third Party Administrator (TPA) Guidelines. The draft is currently being reviewed for feedback by the Regulatory Framework (B) Task Force.

• Received an update on HR 635 which proposes federal legislation that would authorize the creation of a National Commission on State Workers’ Compensation Laws. It was reported that a number of stakeholders have now come forward in opposition to HR 635 including the National Association of Professional Insurance Agents, the Property Casualty Insurers Association of America, and the U.S. Chamber of Commerce.

• Received an update on progress made by the Workers’ Compensation Large Deductible Subgroup of the Casualty Actuarial and Statistical Task Force from one of its members. The Subgroup has been evaluating whether to keep large deductible premium assessments based off of losses as they are now, or whether a new method based on premiums should be developed. A comment letter from the American Insurance Association was recently received and is being reviewed.  

• Agreed the Third Quarter 2009 meeting of the NAIC/IAIABC Joint Working Group would not be held due to conflicting dates between the IAIABC 2009 Annual Convention and the NAIC Fall National Meeting. The Working Group may hold a conference call(s), depending on concerns at that time.

Action Item:

None