Faster Examinations A Focus Of Market Conduct Work
Work on market conduct streamlining is taking place on several regulatory fronts, including a coordinated market conduct exam among state insurance departments.
Regulators are stressing efficiency. “We need to target our resources appropriately,” said Joel Ario, administrator with the Oregon insurance department.
During the winter meeting of the National Association of Insurance Commissioners last month a pilot project was unveiled. In the pilot, four insurance departments will dramatically cut the time for market conduct exams, according to Ohio Director Lee Covington. Ohio, the department leading the exam, is participating in the pilot with Illinois, Nebraska and Oregon. A late January or early February time frame is anticipated.
Covington says the hope is to conduct the on-site market conduct review in two weeks, cutting down dramatically on a process that can normally take as long as two to three months. Pre-exam prep work will cut down on the on-site exam time.
The coordinated effort will use common standards for each issue looked at during the market conduct exam rather than four separate state standards. The common standards will include legal standards.