Iowas Terri Vaughan: 10 Years A Regulator
After a decade as a leading insurance regulator, outgoing Iowa Insurance Commissioner Terri Vaughan spoke with National Underwriter about her career and the future of state insurance regulation.
Vaughan began her stint as an insurance commissioner on Aug. 1, 1994, and on Dec. 31 will return to academia when she becomes a professor at Drake University, Des Moines, Iowa. She has been named the Robb B. Kelley distinguished professor of insurance and actuarial science and will mark her return to teaching this spring with an MBA risk management course.
Among the major efforts she spearheaded is the development of an Interstate Compact for product filing while she was president of the National Association of Insurance Commissioners.
Currently 9 states have enacted the statutory framework for a single point of filing and, according to Vaughan, she is hopeful the additional 17 states needed can be assembled in 2005 to make the compact operational.
The impetus for the compact started in February 2002 during the annual commissioners weekend, she said. During a lengthy discussion, according to Vaughan, the commissioners decided that three options were available to them: continue as is, approach federal lawmakers in Washington, or develop an approach that would create a single point of filing.
Vaughan said there were times at the beginning of the compact effort that she was not completely confident it was the right approach. However, she became more confident as work continued and commissioners expressed support.
Yet when the compact was fully adopted by the NAIC in December 2002, Vaughan said she was not surprised by the contentious debate that preceded the vote given that “this was a major change and really a new way of thinking about state regulation. So, I expected an exchange.”
What she liked about her tenure, she said, was the variety of issues and “the ability to dig in deep” into those issues.
One of those issues that regulators currently are facing is how to establish guidelines for broker compensation.