Special Accreditation (D) Working Group
Special Accreditation (D) Working Group Page
Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index

The Special Accreditation Standards (D) Working Group met via conference call May 13, 2009.

During this meeting, the Working Group:  

  • Focused on the minimum laws required for proper market regulation. Since the Working Group believed that most states have authority to conduct market conduct examinations, the discussion focused on whether states have the proper authority to perform market analysis and continuum actions other than examinations.
  • Discussed NAIC staff’s assessment of procedural laws and regulatory practices necessary for an effective market accreditation program. Part A of the assessment focused on whether a state has sufficient authority to regulate the market conduct practices of insurance companies operating within its jurisdiction through the collection of data, market analysis, regulatory interventions and collaboration with other states. Part B focused on substantive laws, such as if a state has the authority to regulate under the Unfair Trade Practices Act or authority to regulate under the Unfair Claims Settlement Practices Model Act. The Working Group asked for comments regarding the assessment.

The Special Accreditation Standards (D) Working Group also met June 14, 2009.

During this meeting, the Working Group:  

  • Discussed comments received regarding the components of the NAIC Market Conduct Surveillance Model Act needed for a Market Accreditation Program. The discussion centered on the requirement that states examine domestic companies once every five years and the deference that might be required in an accreditation program.
  • Received a presentation from NAIC staff that provided an overview of the NAIC Administrative Policies Manual of the Financial Regulation Standards and Accreditation Program.
  • Discussed the concept of “substantially similar” as it might be used for a market accreditation program.         
  • Discussed the numerous advantages of a market regulation accreditation program.

Action Items:

No action was taken during the meetings.
 

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