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October 22, 2008 at 12:00 PM
Insurance industry representatives are questioning some of the items in the budget proposed by the National Association of Insurance Commissioners.
The 2009 budget comment period ended Friday.
The NAIC, Kansas City, Mo., will hold a public hearing on the budget proposal Nov. 5, and the NAIC’s executive committee will consider the budget Dec. 6.
The NAIC is projecting that revenue will increase 7.1%, to $73.1 million, and expenses will increase 6%, to $70.5 million.
Sources of revenue growth should include an increase in revenue from the System for Electronic Rate and Form Filing, an increase in royalties from data redistributors, and an increase in revenue from the state producer licensing system, according to Roger Sevigny, the NAIC president-elect and New Hampshire commissioner.
Expenses could include a 3.5% increase in employee salaries and benefits, to $411,873 and an additional $748,000 in insurance department travel subsidies, Sevigny says.
The NAIC also will be paying for a severance package for Cathy Weatherford, the former chief executive, who left in August; the formation of a new market conduct analysis program; and implementation of efforts to move the NAIC’s executive team to Washington.
The NAIC has not published information about the size of the settlement with Weatherford or information about projected compensation for the NAIC’s next chief executive.
