The American Insurance Association said it is encouraged by the NAIC’s announcement that it has shared a roadmap it developed to achieve regulatory modernization with U.S. House Financial Services Committee Chairman Michael Oxley (R-OH).
“It is imperative that state regulators work closely with Congress and insurers as national standards for insurance regulation are developed,” commented AIA VP and assistant general counsel David Snyder, during the NAIC’s Industry Liaison Committee meeting.
“It is interesting that the NAIC chose the term ‘roadmap’ because this document is clearly not a detailed blueprint. There are many, many issues that need to be further developed, and AIA looks forward to working with the NAIC on this project going forward,” Snyder continued.
He stressed that the “AIA remains committed to enactment of a market-driven optional federal charter, we are pragmatic about the short-term opportunities for achieving that goal and the possibility of seeing significant improvement in some key areas through the targeted approach that the Oxley-Baker roadmap presents.”
The insurance association cited the three following principles as underlying its continued support of the roadmap:
1. The elimination of government price controls on rates in favor of an Illinois-style ‘free market’ pricing system.
2. Significant movement toward a uniform, market-oriented form review system at the state level, such as an ‘informational filing’ system or a ‘file and use’ approach with a 30 calendar-day review period based on clear statutory standards. Commercial lines policy forms should also be exempt from the filing and review process, so that insurers can deliver insurance products to all of their commercial customers, large and small, in a timely fashion.
3. And finally, an effective system for national dispute resolution.
“We appreciate and look forward to the NAIC’s continuing participation in the roadmap process, as well as its commitment to significant improvements in the state insurance regulatory structure,” Snyder concluded.
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