NAMIC will advocate on several issues during the National Conference of Insurance Legislators (NCOIL) meeting that lasts through Sunday in Savannah, Ga.
State Relations Manager Neil Alldredge and Regulatory Affairs Vice President Roger Schmelzer will support a new resolution opposing state chartered worker’s compensation funds from forming a subsidiary to sell insurance in other states. This has already occurred in North Dakota. The resolution, sponsored by Rep. Terry Park of Illinois, would encourage other states to not follow North Dakota’s lead.
Along with industry colleagues, NAMIC will also actively educate legislators regarding negative aspects of lowering the collateral requirements of Alien reinsurers. Currently, foreign reinsurers are required to post collateral equal to 100 percent of their U.S. coverage amounts. All last year NCOIL considered lowering this standard and the International Issues Committee passed such a measure last November. All measures at NCOIL have to also pass the Executive Committee before endorsement. The Executive Committee did not take action at the November meeting and is not expected to at this meeting.
NAMIC said it will work diligently to educate members on the difficulty potentially faced by small companies if the required collateral is lowered. Indications point to a vote at the Summer NCOIL meeting. NAMIC will continue its strong opposition.
Another new issue is a model bill that would limit liability of small homebuilders or contractors. NAMIC has not taken an official position on this model but will likely be supportive. Since this is the first time the model has been considered legislators may well decide to vote on the bill at a later meeting.
Legislators will also hear updates on credit scoring, and regulatory modernization initiatives from around the country. In addition, a panel discussion will be held on tort reform and the NAIC life compact.
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