The National Association of Insurance Commissioners will work in 2008 to develop an insurance regulation standardization proposal for Congress.
Sandy Praeger, Kansas insurance commissioner and the new president of the NAIC, Kansas City, Mo., talk about the effort here at the NAIC’s winter meeting.
Praeger emphasized that the effort will enhance state regulation and not abrogate state authority.
In the past, Praeger said, the NAIC has worked with federal authorities on similar efforts, in connection with issues such as Medicare supplement insurance the producer licensing records.
The NAIC will consider a number of approaches during its annual weekend gathering in February 2008, Praeger said.
Texas Insurance Commissioner Michael Geeslin described one proposal today during the government relations leadership council session.
During the session, Geeslin discussed the idea of developing a Federal Standardization Act of 2008 model.
A single convention or organization could get involved with policy, product or licensing issues that appear to be in need of standardization, Geeslin said.
The organization could be the NAIC or another body, and it could incorporate the new Interstate Insurance Product Regulatory Commission, which recently started approving product filings for life insurance products, Geeslin said.
The new standardization body or convention could help with putting standardization efforts on a “clock” and with “giving ownership to the task of standardization,” Geeslin said.
The proposal would include lines of business for which there would be a fair certainty of success in standardization, Geeslin said.