Consumer Reps Discuss Whistleblower Provision

The removal of a whistleblower provision should not have a major impact on insurance regulation because so many states already have whistleblower laws, Hennosy says.

If a need for a whistleblower provision does develop, a separate model can be created, Hennosy adds.

But Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, says the whistleblower provision is important and should be put back in the model because it can help regulators identify agents who are not acting properly.

The current model “is a grab bag for insurers for putting up roadblocks in front of regulators,” Birnbaum says.

What the model should be doing, according to Birnbaum, is making sure that there is a minimum level of resources for regulation and making sure that the commissioners get the information that they need.