The National Association of Insurance Commissioners has approved a conflict-of-interest policy for individuals who receive NAIC funding to speak for consumers in association proceedings.
The executive committee of the NAIC, Kansas City, Mo., and the plenary, the body that represents all voting jurisdictions, passed the funded consumer rep proposal unanimously here at the NAIC’s winter meeting.
The funded rep policy statement was developed by the NAIC’s Consumer Board of Trustees, which includes both NAIC funded consumer reps and state insurance regulators. The board is led by Wisconsin Commissioner Sean Dilweg.
The policy statement states that compensation from a “regulated entity” may compromise effective funded consumer representation.
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A regulated entity could include an entity regulated by state insurance regulators, a trade group, or individuals acting as agents or representatives of a regulated entity.
If a consumer rep or an immediate family member receives compensation that may be affected by the policy, then the rep must notify the Consumer Board of Trustees and the NAIC staff within 7 days of the receipt of the compensation or agreement to receive compensation. Items that will be looked at include expense reimbursement, employment income, receipt of gifts and honoraria.