Why Aren’t More Insurers Using CARFRA For Filings?
Regulators and insurers met here to discuss why a pilot program for a single point of filing is not being used by more insurers and how the system can be improved in the coming year to make it more appealing for companies with new product filings.
The Coordinated Advertising Rate and Form Review Authority, a speed-to-market initiative of the National Association of Insurance Commissioners, is a project that establishes a single point of filing for products. To date, the 10-state pilot has had one product filing, a term product filed by Prudential Financial, Newark, N.J.
Michigan Commissioner Frank Fitzgerald, a co-chair of the CARFRA working group with Pennsylvania Commissioner Diane Koken, said there is concern that a system will be built and no one will come to it, but he believes the project will be a success with further work. That work, he said, includes determining how laws and regulations deviate from national standards.
Among the areas he said need to be reviewed are statutes, regulations and rules and desk drawer rules, which are unofficial requirements created by departments.