Regulators might allow more time for debate before approving an Insurance Receivership Model Act. [@@]
The Financial Conditions “E” Committee at the National Association of Insurance Commissioners, Kansas City, Mo., plans to go over industry objections to the model Wednesday.
The “E” Committee also could consider the model in September, at the NAIC’s fall meeting in New Orleans.
The panel at first seemed eager to approve the model swiftly, but the panel has encountered considerable opposition from the insurance industry.
Virginia Commissioner Al Gross, the “E” Committee chairman, says the committee will be looking at objections to the model from regulators as well as from industry.
“And whether we take any action on it New Orleans will depends on what happens on Wednesday,” Gross says.
Mike Koziol, assistant vice president of the Property Casualty Insurers Association of America, Des Plaines, Ill., says the current model strongly favors liquidators over policyholders and other parties in liquidations.
Industry concerns include large deductible provisions and reinsurance recoverables.
Koziol also worries about the large grants of immunity to receivers and their contractors. “IRMA would prevent a claimant from suing a contractor who released personal information,” Koziol says. “That is going too far.”