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February 23, 2005 at 07:00 PM
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Model laws adopted by the National Association of Insurance Commissioners are being taken up in state legislatures around the country.
Among the models being introduced in state houses are the Interstate Insurance Product Regulation Compact model law, changes to the Producer Licensing model act, and the Actuarial Opinion and Memorandum model regulation.
The compact, according to the NAIC, is enacted in 9 statesColorado, Hawaii, Iowa, Maine, New Hampshire, Rhode Island, Utah, Virginia and West Virginia. It is under consideration in 22 more.
During a recent discussion on the issue, Colorado Insurance Commissioner Doug Dean said at least 13 states have introduced the compact into legislation in this session and New Jersey has carried a bill forward from last session.
Alabama has reintroduced the compact bill and Arkansas anticipates introducing it, but representatives for both insurance departments say they anticipate resistance from the Trial Lawyers Association. The remarks were made during a discussion of the NAICs compact implementation task force. In Montana, constitutional questions are also expected to be raised by trial lawyers, according to a discussion among regulators.
Dean also says insurance departments introducing the compact will need to educate legislators. The National Conference of State Legislatures, Denver, has stated that it will help with that process.
Indianas senate adopted the compact bill in a 47-1 vote on Feb. 28, says Jim Atterholt, Indianas acting commissioner. The compact will go through the house committee process starting in the next week or two, he adds. The version that is advancing is the NAIC version with the “full force and effect” wording, according to Atterholt. A previous attempt had been sidetracked because legislators had sovereignty concerns, he says.
