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June 08, 2008 at 04:00 PM
A controversial proposal to collect data and store it nationally with the National Association of Insurance Commissioners continued to draw criticism even as regulators insisted that it would be better for both consumers and insurers themselves.
Further discussion is planned and a vote is possible by the end of June, according to Sandy Praeger, Kansas insurance commissioner and NAIC president, who made her comments during the NAIC’s plenary meeting.
She noted the dissension on the issue but also said that in order for market conduct data to be included as a supplement to the annual financial statement, a decision would have to be made before July 1. The beginning of July is a deadline, she said, because vendors need to have information so they can begin preparing the financial statements, known as blanks, for Jan. 1, 2009 implementation.
Toward that end, the blanks committee created a place marker for the market conduct data page in case a proposal is approved by the full NAIC body.
The discussion started in the legislative liaison committee at the summer NAIC meeting here when legislators and regulators sparred over just how much vetting the proposal received.
Legislators were not included in the development of this project and were not allowed to provide valuable input, maintained Rhode Island state representative Brian Kennedy, D-Hopkinton, and president of the National Conference of Insurance Legislators, Troy, N.Y.
Kennedy said NCOIL has its own market data model and said that had regulators at the NAIC included them in the discussion, legislators could have provided valuable input.
Montana Insurance Commissioner John Morrison, chair of the Market Regulation and Consumer Affairs “D” Committee, reminded Kennedy that there was an open discussion during the spring NAIC meeting and then again on May 28 when the NAIC’s executive committee held a conference call to discuss the issue (see NU, June 2).
