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NAIC Considers New Policy For Model Laws

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The National Association of Insurance Commissioners may start to require that two-thirds of members vote for a proposed model law before the NAIC will adopt the model.

The NAIC, Kansas City, Mo., also may require that commissioners who vote for a model commit to working to get the model adopted in their own states.

Insurance regulators and others discussed the proposed policy change Tuesday in Atlanta, during a session at a life insurance conference organized by LIMRA International, Windsor, Conn.; LOMA, Atlanta; the Society of Actuaries, Schaumburg, Ill.; and the American Council of Life Insurers, Washington.

Supporters of the two-thirds majority rule would like to get it in place in time for the NAIC’s summer meeting in San Francisco, which will start June 1, according to Georgia Insurance Commissioner John Oxendine.

NAIC President Walter Bell, the Alabama insurance commissioner, has supported the two-thirds majority initiative to reduce the likelihood that NAIC models adopted in the future will become law in only 1 or 2 states, Oxendine said in a telephone interview.

If commissioners vote for a model after the new rules take effect, they will have to “make a personal commitment to do everything they could to get it adopted in their states,” Oxendine said.

Discussions about procedural changes are still under way, and no action has been taken, NAIC spokesman Scott Holeman said in a separate telephone interview.