NU Online News Service, June 22, 2:15 p.m. — Washington
House Financial Services Committee Chairman Mike Oxley, R-Ohio, warned that, if insurance regulation is not reformed, Congress will step in.
“Make no mistake about it,” he said at a hearing, “true reform is necessary. It is my hope that our state legislators and insurance commissioners can enact such reform. If not, Congress will return to this issue with our own solution.”
Representatives from both the National Association of Insurance Commissioners, Kansas City, Mo., and the National Conference of Insurance Legislators, Albany, N.Y., responded that they can and will get the job done.
“State insurance regulators recognize that traditional methods of insurance regulation need to be modernized to allow the insurance industry to keep pace with its competitors and to ensure that regulators are able to serve the best interests of insurance consumers,” said Michigan Insurance Commissioner Frank Fitzgerald.
“I am excited to report that we remain strongly committed to the product speed-to-market modernization initiative with unprecedented consensus,” he said.
Ohio Insurance Commissioner Lee Covington said the NAIC has a two-track approach under way aimed at improving speed-to-market.
Under the Coordinated Advertising Rate and Form Review Authority, he said, there will be a single point of filing based on an agreed upon set of national product standards.
CARFRA is currently being tested in 10 states and focuses on life and health products. But it will soon be expanded to cover more products and states, Covington said.