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September 11, 2008 at 11:48 AM
Birny Birnbaum has come up with a list of sample situations that could help National Association of Insurance Commissioners consumer representatives avoid potential conflicts of interest.
The regulators at the NAIC, Kansas City, Mo., and the Consumer Board of Trustees, a panel that oversees individuals who receive NAIC funding to represent consumers in NAIC proceedings, are trying to develop a policy that would prevent funded consumer reps from taking payments that could create conflicts of interest.
The issue surfaced after the NAIC adopted a conflict-of-interest policy for commissioners in March.
Birnbaum, a funded consumer rep and executive director of the Center for Economic Justice, Austin, Texas, stepped up after regulators and consumer board members said someone should develop compensation arrangement examples that could be used to develop funded rep compensation guidelines.
Birnbaum is offering the following examples:
- Compensation from regulated entities in the form of travel expense reimbursement to speak to a trade association of regulated entities (such as insurers, reinsurers or producers).
- Compensation from regulated entities in the form of travel expense reimbursement to testify on behalf of the individual or her organization on an issue before a state legislative or administrative body or other policy-making entity, such as the NAIC or the National Conference of Insurance Legislators, Troy, N.Y.
- Compensation from regulated entities in the form of travel expense reimbursement to testify on behalf of the individual or the individual’s organization on an issue before a federal legislative or administrative body or other policy-making entity, such as the NAIC or NCOIL.
- Compensation from a best practices organization in the form of travel expense reimbursement for serving on the board of directors of the best practices organization.
- Compensation from a regulated entity in the form of travel expense reimbursement for serving on the board of directors of the regulated entity.
