NU Online News Service, Jan. 8, 2004, 5:55 p.m. EST – Insurers are holding a meeting today and Friday to discuss the market conduct meeting being developed by the National Conference of Insurance Legislators, Albany, N.Y.[@@]
NCOIL has asked insurance trade organizations to comment on matters such as definitions, deference to a company’s state of domicile and confidentiality of information shared by states.
NCOIL leaders say they are hoping the group will adopt the Market Conduct Surveillance model act at NCOIL’s next meeting, which will take place Feb. 26-29 in San Antonio.
Both NCOIL and the National Association of Insurance Commissioners, Kansas City, Mo., are working on the market conduct reform issue.
The work is at least partially in response to a call by the General Accounting Office for action to strengthen the current system of market conduct oversight.
Insurer representatives at the industry meeting will discuss points that they can agree on, so that legislators will be able to focus on the work that still needs to be done, Linda Lanam, vice president-annuities at the American Council of Life Insurers, Washington, said in an interview before the meeting started.
Life insurers want to see the model act create definitions that can support uniform, consistent standards, and they also want to see the model protect insurers that supply confidential information, Lanam said.
The confidentiality provisions should keep confidential information from becoming the subject of litigation and prevent companies that act badly from receiving the same protections given to companies that are doing the right thing, Lanam said.