Oxley Lays Out A Federal Oversight Role

Oxley, they said, contemplates a “full federal-state partnership,” and in comments he pointed to the “excellent work” of both NAICs State Electronic Rate and Form Filing System and work on the interstate compact for life insurance product filing.

Asked about Oxleys reaction to the Market Conduct Surveillance model act just adopted by the National Conference of Insurance Legislators, those in attendance said that, in general, Oxley supports the NCOIL model.

Those interviewed expressed some optimism about support for state regulation of the industry. Terri Vaughan, Iowa insurance commissioner and NAIC past president, said Oxleys address took note of the NAICs Accelerated Licensing Evaluation Review Technique program for national treatment of companies. She said he was supportive of a partnership that would maintain a state regulatory system and current regulatory modernization efforts.

Larry Mirel, insurance commissioner for the District of Columbia, said he was “encouraged” with the remarks because Oxley was “very supportive of state regulation.” What was clear, he said, was that it was not just a system of federal oversight, but offered real support for state regulation.

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

Oxley “is a realist,” said 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.” The congressman is working with regulators and, consequently, regulators need to find common ground, he added.

Poolman said activity next month should be of strong interest to the industry when details of a federal bill or principles will be detailed, and state insurance commissioners will be discussing what should be the parameters of the NAICs response.

Reproduced from National Underwriter Life & Health/Financial Services Edition, March 19, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.