Oregon Insurance Administrator Joel Ario says state insurance regulators and the American Council of Life Insurers may need to gather more information about the market conduct examination process.[@@]
The remarks came up here recently during a Market Regulation and Consumer Affairs Committee session at the winter meeting of the National Association of Insurance Commissioners, Kansas City, Mo.
Regulators conduct 2 types of exams: targeted exams resulting from specific regulatory concerns and non-targeted exams of companies that appear to be doing well.
Linda Lanam, a vice president at the ACLI, Washington, said she is hearing anecdotes from life insurers suggesting that there has been little reduction in the number of non-targeted market conduct exams.
The ACLI is trying to conduct a survey to assess companies’ exam experience over the past 3 years, Lanam said.
Ario, vice chairman of the market regulation committee, said he has seen reports suggesting that 30 states are conducting very few non-targeted exams.
Because targeted exams usually take less time than non-targeted exams, many states are saying they can conduct 4 or 5 targeted exams in the amount of time needed to conduct 1 non-targeted exam, Ario said.
But Ario suggested that both the ACLI and regulators should gather more information, so that neither will have to rely on anecdotal information about the exam issue.