A survey of market conduct exams conducted by insurance trade groups among their member companies found the number of examinations has changed little, despite efforts to streamline the examination process.
The findings were discussed during the market conduct uniformity working group at the summer meeting of the National Association of Insurance Commissioners, Kansas City, Mo., here.
Groups that participated in the study were the American Council of Life Insurers, the American Insurance Association, America’s Health Insurance Plans, Blue Cross and Blue Shield Association, all in Washington; the National Association of Mutual Insurance Companies, Indianapolis; and the Property Casualty Insurers Association of America, Des Plaines, Ill.
According to statements from representatives of these groups, aggregate results show on-site targeted exams and on-site multistate exams declined slightly, while on-site single state comprehensive exams increased slightly. Desk audits, which are regulatory exams from an office, increased.
The respective results for 2003, 2004 and 2005 were as follows:
On-site single-state targeted examinations: 127 in 2003, 108 in 2004 and 111 in 2005;
On-site single-state comprehensive exams: 116 in 2003, 99 in 2004 and 122 in 2004;
On-site multistate exams: 5 in 2003, 7 in 2004 and 4 in 2005;
Desk audits: 58 in 2003, 64 in 2004, and 84 in 2005.
The duration of regulatory activity seemed to show a decline in longer market conduct examinations, the studies showed.