A National Association of Insurance Commissioners panel approved a receivership model act today in a process insurance industry trade groups said was too rushed.
A joint letter signed by 6 insurance trade groups urged the Insolvency Task Force to adopt a longer comment period and a hearing at the summer NAIC meeting next month, instead of current plans to approve it at that time.
“As much support that exists for improving the statutory framework, there is equally great support for doing the job correctly,” the letter states.
The model would spell out a procedure for state regulators to follow when insurance carriers in their state become insolvent.
The letter cites the fact that the complex model was 78 pages long and was released on May 3.
“Could not such an ambitious project of such mammoth scope and financial significance benefit from a meaningful opportunity to obtain input from the stakeholders who would be affected by it?” the letter stated.
The American Council of Life Insurers joined other trade groups in urging the Task Force to move more slowly. ACLI has not taken a position on the document, a staff member says.