A new, simpler Fingerprint Model Act and preliminary industry findings on the effect of a market analysis program were a few of the market conduct initiatives that received an airing during the spring meeting of the National Association of Insurance Commissioners here.
During the Market Regulation and Consumer Affairs “D” Committee, the simplified Fingerprint Model Act was unveiled by Iowa Insurance Commissioner Susan Voss, chair of the Market Regulation and Consumer Affairs “D” Committee and North Dakota Insurance Commissioner Jim Poolman. After an overview of the changes, the model was adopted out of “D” Committee to the Executive Committee and Plenary.
The new model will eliminate the requirement that officers and directors of companies submit to fingerprint requirements that producers will be required to provide. The new model also will not include provisions for a central repository for fingerprints housed with the NAIC. And, the stripped down version of the model eliminates an exemption for those 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 motion was made by regulators.
In describing the changes, Poolman said that “everyone had added an ornament to the Christmas tree” and the simplified version of the model 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 results are showing mixed results, according to Don Cleasby, vice president, regional manager and counsel with the Property Casualty Insurers of America, Des Plaines, Ill.