Oxley: Congress Might Create Regulatory Tools

When asked about Oxley’s support for the Market Conduct Surveillance model act just adopted by the National Conference of Insurance Legislators, Albany, N.Y., those in attendance had different takes on the degree of support. Most interviewees agreed that, in general, Oxley supports the model. One interviewee suggested more ardent support and the likelihood that the model would be considered in a federal tools approach.

Those interviewed expressed some optimism following the address. The address mentioned the NAIC’s ALERT program and was supportive of a partnership that would maintain a state regulatory system and current regulatory modernization efforts, says Terri Vaughan, Iowa insurance commissioner and NAIC past president.

Larry Mirel, insurance commissioner for the District of Columbia, says he was “encouraged” by the remarks, because Oxley was “very supportive of state regulation.”

Ernst Csiszar, South Carolina insurance director and president of the NAIC, told attendees during the opening session that commissioners were offered a clearer idea of thinking in the House, although the Senate’s position was less clear. Much of the work being sought is already being done, he says. With or without the threat of federal intervention, Csiszar says, initiatives such as the interstate compact and market conduct efforts should proceed.

“The chairman is a realist,” says Jim Poolman, North Dakota commissioner and NAIC vice president. “He wholeheartedly supports state regulation but wants to prod us along in our reforms with legislation.”