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April 09, 2008 at 12:53 PM
Honey works better than vinegar for insurers undergoing market conduct exams, panelists said here at a New York City Bar Association insurance regulation conference.
When involved with market conduct exams, “treat examiners the way you would want to be treated,” David Kenepp, manager of market conduct services Liberty Mutual Group, Boston, said at a conference session on the exam process. “If you start off in a bad position, it is very hard to get back on track.”
One key to maintaining a strong relationship is to respond to requests for information in a timely manner or to give a reason why that is not possible, Kenepp said.
Kara Baysinger, vice chair of the insurance practice group in the San Francisco office of Sonnenschein Nath & Rosenthal L.L.P., also talked about the need to avoid starting off an examination with a confrontational attitude.
“Sloppy half answers” and a “treasure hunt” for documents that an examiner needs are things that a company should try and avoid, Baysinger said.
But Baysinger said an insurer might have to take a more rigorous approach as an exam progresses, and panel participants agreed that the quality of the examiners – and especially contract examiners – varies widely.
Some examiners are learn quickly about a company and its products, but others “have a vendetta against the company or a huge ramp up time,” Baysinger said.
Rosanne Mead, assistant insurance commissioner with the Iowa Insurance Department, recommended that insurers take a balanced approach to handling concerns about examiners.
