Members of the National Association of Insurance Commissioners voted here at the NAIC’s fall meeting to adopt 2 market conduct analysis statement program models and a number of other measures.
Other measures that passed include:
- A model regulating the use of professional designations by producers and others who are marketing financial services products to older consumers.
- Actuarial Guideline VA-CARVM which establishes more flexible reserving rules for variable annuities with guarantees.
- A Medicare supplement insurance standards model.
The 2 market conduct analysis statement models that were approved include a requirement that the NAIC would store state-specific data; a requirement that the need for additional data elements be discussed; a transition period starting in 2009; and a requirement that insurers start filing the first market conduct analysis statements, which would cover 2010, in 2011.
The commissioners have not yet decided whether the data should be collected through the annual statement or through a state’s market conduct program.
Data collected under existing market conduct authority could be more “robust” data collected through a market conduct analysis statement, some commissioners said.
The market conduct statement model votes drew were attacked by representatives from the American Insurance Association, Washington; the National Association of Mutual Insurance Companies, Indianapolis; and the Property Casualty Insurers Association of America, Des Plaines, Ill.
Consumer group representatives said the market conduct statement program is critical to improving the insurance marketplace.
A second proposal, Actuarial Guideline VA-CARVM, was adopted nearly unanimously.
Connecticut Insurance Commissioner Tom Sullivan expressed concern about dynamic hedging, saying an insurer would only be “as strong as one’s counterparties.”
Sullivan withdrew a vote in favor of the guideline that he cast during NAIC Life Insurance and Annuities Committee proceedings.
A third proposal, the senior designations model, which also came out of the Life Insurance and Annuities Committee, sailed through plenary, the body that includes all voting members of the NAIC.
The plenary also had an easy time adopting the Medicare supplement standards model.
The NAIC developed the Medigap model in response to a change in federal law which limits insurers’ ability to use consumers’ genetic information.
If state regulators fail to modify state standards to reflect the change, the law calls for the federal government to impose federal standards.