Market Regulation and Consumer Affairs (D) Committee
Market Regulation and Consumer Affairs (D) Committee Page
Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index

The Market Regulation & Consumer Affairs (D) Committee met June 16, 2009.

During this meeting, the Committee:  

• Discussed the current activities of the Market Conduct Annual Statement (MCAS), which includes a survey regarding state use of the data collected and ratios collected. States will begin submitting the MCAS data to the NAIC on a confidential basis June 18 for review and analysis.

• Received a report from NAIC staff on the Market Information Systems. This report included an overview of the state input and usage of the Market Analysis Review System, Market Initiatives Tracking System, Market Analysis Priorities Tool, Complaint Database System, Regulatory Information Retrieval System, Complaint Database System and Exam Tracking System. NAIC staff also provided their recommendations regarding ways to improve the future development and use of these systems.

• Received a report from NAIC staff on the April 2009 Government Accountability Office (GAO) Report, Insurance Reciprocity and Uniformity. NAIC staff reported that the GAO recognized the implementation of the MCAS, Market Actions Working Group and the development of core competencies for market regulation. At the same time, NAIC staff reported that the GAO recognized that continued improvement is still needed.

• Adopted the Complaint Database System Manual, which sets forth the codes and definitions for the NAIC’s Complaint Database System and state reporting of complaints to the system.

• Adopted the revisions to Chapter 25 of the Market Regulation Handbook—Conducting the Advisory Organization Examination—as adopted by the Property and Casualty Insurance (C) Committee.

• Adopted the report of the joint meeting of the Market Regulation and Consumer Affairs Committee and the Property and Casualty Insurance (C) Committee on credit-based insurance scores, the Antifraud Task Force, the Special Accreditation Standards Working Group, the Market Analysis Procedures Working Group, the Consumer Connections Working Group and the Market Conduct Examinations Standards Working Group.

• Received an updated on the Federal Model Privacy Form and discussed the need for the NAIC to submit additional suggested changes to the form by the middle of July. The Committee also discussed the impact of industry use of the form and state implementation issues.

• Discussed the scheduling of a joint public hearing with the Health Insurance and Managed Care (B) Committee on third-party vendors and usual & customary reimbursement rates.

Action Items:

• Adopted the Complaint Database System Manual, which sets forth the codes and definitions for the NAIC’s Complaint Database System and state reporting of complaints to the system.

• Adopted the revisions to Chapter 25 of the Market Regulation Handbook—Conducting the Advisory Organization Examination—as adopted by the Property and Casualty Insurance (C) Committee.

• Adopted the report of the joint meeting of the Market Regulation and Consumer Affairs Committee and the Property and Casualty Insurance (C) Committee, the Antifraud Task Force, the Special Accreditation Standards Working Group, the Market Analysis Procedures Working Group, the Consumer Connections Working Group and the Market Conduct Examinations Standards Working Group.