NAIC Changes Model Law Policy

The National Association of Insurance Commissioners’ executive committee voted to make changes to its process of adopting model laws.

The new framework requires the parent committee and the executive committee to approve, by simple majority vote, the development of a model law before drafting begins, according to a statement from the NAIC. Models will require a two-thirds vote in both the parent committee and the plenary in order to be adopted.

To be approved, the model law must both involve a national standard that requires uniformity among all states and receive the commitment of significant regulator and association resources to educate, communicate and support its state implementation, the NAIC statement says.