Lawmakers will be looking at market conduct this weekend in Chicago at the summer meeting of the National Conference of Insurance Legislators, Albany, N.Y.[@@]
Other topics likely to surface include corporate governance and efforts to extend the Terrorism Risk Insurance Act of 2002.
The American Council of Life Insurers, Washington, says it will try to persuade lawmakers to stop intermediaries from linking life insurance insureds with beneficiaries who have no clear interest in the lives of the insureds.
But the market conduct discussions may be getting the most attention. NCOIL members will be reviewing the changes made by the National Association of Insurance Commissioners, Kansas City, Mo., to NCOIL’s Market Conduct Model Surveillance Model Act.
Insurers are supposed to pay for the market conduct examinations themselves. One open question is whether insurers ought to get cost estimates before the exams start or firm budget figures.
Legislators also will talk about whether a company should be allowed an administrative or an informational hearing if it disagrees with the findings of an examination and how state regulators should handle acceptance of other states’ market conduct exam results.
Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, says NCOIL should accept the changes that the NAIC made in its model. NCOIL also should continue to work with the NAIC to ensure the success of market conduct reform, he says.
A commissioner’s explanation for determining a market conduct examination is sufficient and should not be contested through an administrative hearing, Birnbaum says. This approach prevents the creation of “significant roadblocks for regulators attempting to address market conduct problems,” according to Birnbaum.