State insurance regulators are telling state legislators that they are not out to use annual statement instructions to impose tough new financial reporting standards.[@@]
Doug Stolte, deputy commissioner of the Virginia Bureau of Insurance, has written a letter emphasizing that members of an accounting standards working group at the National Association of Insurance Commissioners, Kansas City, Mo., respect the traditional rulemaking process.
Because of the significance of the financial reporting changes that the working group is proposing, the working group will recommend that states adopt the changes through statutes or through regulations, Stolte writes in the letter.
“The working group is in no way trying to impinge on any state’s legislative process by making substantive policy judgments,” Stolte writes.
The controversy deals with working group efforts to incorporate some of the financial reporting requirements in the Sarbanes-Oxley Act of 2002 in changes to the NAIC’s Model Audit Rule.
Rep. Craig Eiland, a Texas lawmaker who is active in the National Conference of Insurance Legislators, Albany, N.Y., wrote in March that states would use changes in annual statement instructions to implement the changes.