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August 25, 2008 at 11:52 AM
The proposed Office of Insurance Information currently before Congress was among the issues state insurance commissioners discussed last week during their gathering in Chicago.
The meeting of the National Association of Insurance Commissioners, Kansas City, Mo., also picked over a proposal by the Securities and Exchange Commission, Washington, to bring indexed annuities under the SEC’s oversight.
The OII came up as part of a broader overview of bills that the NAIC continues to track, according to interviews with insurance commissioners at the meeting.
Roger Sevigny, NAIC president-elect and New Hampshire insurance commissioner, said that the group continues to work with Congress on the proposal.
The NAIC was working with Rep. Paul Kanjorski, D-Pa., and his staff to reach accord on language that defines an agreement in the bill, H.R. 5840, says Sevigny.
Crafting of the definition is considered important because it would limit authority that federal regulators already have and would not preempt current state authority.
Sevigny reiterated the NAIC’s “vehement” opposition to an optional federal charter proposal.
The commissioners’ meeting also discussed a proposed rule, 151A, which would define the terms “annuity contract” and “optional annuity contract” under the Securities Act of 1933.
The proposed rule also would exempt certain insurance companies from filing reports under the Securities Exchange Act of 1934 for indexed annuities and other securities registered under the Securities Act.
Susan Voss, Iowa insurance commissioner and NAIC secretary-treasurer, said that “we need to demonstrate to the SEC and unfortunately, many state securities regulators, that there is not a problem” with the sale of these products.Voss said Iowa represents 44% of that business.
The NAIC asked for a 90-day extension of the SEC’s comment period so that state commissioners could discuss the proposed rule at its fall meeting in Washington Sept. 22-24.
Although the comment period ends Sept. 10, the National Conference of Insurance Legislators, Troy, N.Y, requested in an Aug. 18 letter to the SEC a 120-day extension so that it also could discuss the issue during its annual meeting Nov.20-23.
