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February 12, 2004 at 07:00 PM
NU Online News Service, Feb. 12, 2004, 5:51 p.m. EST – Should arbitrators resolve disputes between insurers and state regulators over market conduct decisions?[@@]
The National Conference of Insurance Legislators, Albany, N.Y., has put its Market Conduct Surveillance model act draft on a fast track for adoption. The group could vote on the model at a meeting later this month. But NCOIL is still deciding what to do about arbitration.
Insurers fear that, without an arbitration provision, a state insurance department could act as a “prosecutor, judge and jury,” says Don Cleasby, assistant general counsel with the Property Casualty Insurers Association of America, Des Plaines, Ill.
Insurers need a cheaper alternative to full-scale litigation, Cleasby says.
An arbitration system would not be a delegation of a commissioner’s authority because it could only be used if a component of a market conduct review was outside of that authority, Cleasby says.
