Market Conduct Examination Standards (D) Working Group
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Joint Executive (EX) / Plenary Committee Summary Report
Fall 2009 Meeting Summaries Index

The Market Conduct Examination Standards (D) Working Group did not meet at the Fall National Meeting. Instead, the Working Group held three interim conference calls Sept. 2, July 30 and June 24.

During the Sept. 2 conference call, the Working Group:

• Adopted the minutes of the July 30 conference call;
• Discussed the revised Chapter 18—Conducting the Title Insurance Company and Title Insurance Agent Examination.
• Discussed updates to Chapter 16—General Examination Standards and Chapter 17—Conducting the Property and Casualty Examination with regard to new/revised models adopted January 2007 to December 2008 related to producer/adjuster licensing. The producer/adjuster licensing revisions to Chapter 16 were adopted.
• Discussed updates to Chapter 16—General Examination Standards, Chapter 19—Conducting the Life and Annuity Examination, Chapter 20—Conducting the Health Examination, Chapter 21—Conducting the Medical Supplement Examination and Chapter 22—Conducting the Long Term Care Examination with regard to new/revised life and health-related models adopted January 2007 to December 2008. The revisions to Chapters 16, 19, 20, 21 and 22 were adopted.
• Discussed the revised Chapter 25—Conducting the Statistical Agent Examination adopted by the Property and Casualty Insurance (C) Committee in December 2008 and subsequently adopted by the Market Regulation and Consumer Affairs (D) Committee at the Summer National Meeting. Since Chapter 25 was unable to be placed into the 2009 Market Regulation Handbook due to publication timing issues, the Working Group recommended the revised Chapter 25 be posted on-line for regulator access.
• Discussed that NAIC staff identified for regulator review several areas of missing text within the Market Regulation Handbook which go back several years.
• Discussed a proposal to include risk-focused (corporate governance) methodology in the Market Regulation Handbook. The market analysis-related areas of the proposal are with the Market Analysis Procedures Working Group for review, discussion and comment.

During the July 30 conference call, the Working Group:

• Adopted the minutes of the June 24 conference call.
• Discussed revisions to Chapter 18—Conducting the Title Insurance Company and Title Insurance Agent Examination.
• Adopted revisions to the commercial property/casualty standardized data request.
• Adopted revisions to include language regarding contract examiner oversight to Chapter 12—Scheduling, Coordinating and Communicating.
• Adopted a new Standard 18 for inclusion in the Operations/Management section of Chapter 16—General Examination Standards, which incorporates reference to the Medical Professional Liability Closed Claim Model Reporting Law (#77).
• Discussed updates to Chapter 16—General Examination Standards and Chapter 17—Conducting the Property and Casualty Examination with regard to new/revised models adopted January 2007 to December 2008 related to property/casualty insurance.
• Discussed a proposal, which Ohio had submitted for Working Group review, which would include risk-focused methodology (corporate governance) in the Market Regulation Handbook. The Working Group referred the documents that were market analysis-related to the Market Analysis Procedures Working Group for review, discussion and comment.
  

During the June 24 conference call, the Working Group:

• Discussed revisions to Chapter 18—Conducting the Title Insurance Company and Title Insurance Agent Examination.
• Discussed revisions to the commercial property/casualty standardized data request.
• Discussed updates regarding new/revised models adopted January 2007 – December 2008 related to life and health and property/casualty insurance.
• Discussed the incorporation of guidelines into Chapter 12—Scheduling, Coordinating and Communicating with regard to insurance department oversight of contract examiners.
• Discussed the possibility of incorporating risk-focused methodology (corporate governance) into the market conduct examination-related sections and the market analysis-related chapters of the Market Regulation Handbook.