The National Association of Insurance Commissioners, Kansas City, Mo., has adopted a market conduct model law by a 31-20 vote here at its fall meeting.[@@]
The NAIC’s Market Conduct Surveillance Model Act is a revised version of a model adopted in February by the National Conference of Insurance Legislators, Albany, N.Y.
NAIC members changed the model to ease some regulators’ concerns that the model would restrict their ability to perform market conduct work. NCOIL had warned that it would adopt its original model if the NAIC failed to adopt the revised version of the model at the meeting in Anchorage.
Many of the elements in the model are incorporated in a new regulatory reform bill proposal released Aug. 19 by U.S. Reps. Michael Oxley, R-Ohio, and Richard Baker, R-La. Some have viewed streamlining the market conduct process as a way for state insurance regulators to demonstrate the effectiveness of state insurance regulation.
During discussions about the model, Jorge Gomez, Wisconsin insurance commissioner, said he still thinks some model provisions would make it more difficult to take market conduct action against companies.