NAIC Panel Approves Receivership Model

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.