NU Online News Service, Dec. 10, 2003, 9:23 a.m. EST, Anaheim, Calif. – An official from the U.S. General Accounting Office talked about the insurance market conduct system here at the winter meeting of the National Association of Insurance Commissioners, Kansas City, Mo.[@@]
Lawrence Cluff, the GAO’s assistant director-financial markets and community investment, told meeting attendees that an effective market conduct system has three components: a functional and comprehensive market analysis system; targeted examinations for companies that appear to need further attention; and a routine review of a company’s internal controls.
Understanding the meaning of “domestic deference” is a critical point, Cluff added.
Cluff said “domestic deference” means that one state has accountability, not that one state has complete authority over other states.