A new, simpler Fingerprint Model Act and preliminary industry findings on a market analysis program were among market-conduct initiatives aired during the spring meeting of the National Association of Insurance Commissioners here.
The simplified Fingerprint Model Act was unveiled by Iowa Insurance Commissioner Susan Voss and North Dakota Insurance Commissioner Jim Poolman during a session of the Market Regulation and Consumer Affairs “D” Committee. Voss is chair of the committee.
The model was adopted out of committee to the Executive Committee and Plenary.
The new model would eliminate the requirement officers and directors of companies submit to the fingerprint requirements producers will be required to provide. The new model also would not include provisions for a central repository of fingerprints housed with the NAIC. And the stripped-down version would eliminate an exemption for producers registered with the National Association of Securities Dealers, Washington.
These provisions had caused consternation among industry trade groups. Recently, when a request was made to advance the model, no regulator made the required motion to do so.
In describing the changes, Poolman said that “everyone had added an ornament to the Christmas tree,” and the simplified version removed those ornaments.
During the spring meeting, trade groups also offered preliminary results from member polls on the effectiveness of the NAIC’s market-conduct analysis program.
Preliminary data suggests the number of examinations have come down slightly, reported one industry representative, Linda Lanam, vice president-annuities of the American Council of Life Insurers, Washington.
There is some reduction in the total number of examinations, she continued, but there are still a significant number of them. But she said information still needed to be collected and evaluated before a full report of the findings can be made.
Lanam said the goal for both regulators and companies should be the same: how to improve companies’ results when market conduct criteria are applied. To achieve this, insurers need a clearer idea of what the data means, she explained.
Another issue that continues to be of concern, is the confidentiality of market conduct data for companies, according to Lanam.