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September 28, 2008 at 04:00 PM
A market conduct analysis program that had generated enormous controversy was affirmed by the National Association of Insurance Commissioners during its fall meeting here.
The MCA Statement was one of a number of proposals that state insurance commissioners made official NAIC policy. Others included: a model regulating the use of senior designations; the adoption of Actuarial Guideline VA-CARVM, which establishes more flexible reserving for variable annuities with guarantees; and a model regulation to implement Medicare supplement standards.
By far the most controversial of the measures adopted was the MCAS, which received extensive back and forth from commissioners voting on the issue.
Two versions of the MCAS were adopted by commissioners. Combined details of the 2 models affirmed by the NAIC include: provisions that have been discussed, such as a state specific data requirement that would be stored by the NAIC and require discussion for additional data elements. A transition period in 2009 would be created and filing for 2010 would start in 2011.
Significant debate resulted in it being left open as to whether data would be collected through the annual statement or through a state’s market conduct program. One reason cited was that data that could be developed under existing market conduct authority would be more “robust” than it might be under an MCAS.
