Findings of a market conduct survey developed by PricewaterhouseCoopers were part of a discussion at the summer meeting of the National Conference of Insurance Legislators earlier this month.
The survey found that:
–13 states use contract examiners to perform market conduct exams.
–The average number of contract examiners used is 4, but one chief examiner reported using 44 contract examiners.
–Approximately 25% of state insurance departments charge time related to staff members’ on-the-job training to insurers.
–The majority of market conduct exams are targeted exams.
–Approximately 25% of departments have staff or others pose as consumers to assess insurers’ market practices.
–Twenty-nine percent of chief examiners and 27% of examiners-in-charge say they never share the work plan or time budget with insurers.
–Insurers say the work plan is not shared 42% of the time and the time budget is not shared 67% of the time.
Reproduced from National Underwriter Life & Health/Financial Services Edition, August 6, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.