New York — NU Online News Service, Jan. 24, 2009, 7:35 p.m. EST
Two top officers of the National Conference of Insurance Legislators want insurance regulators to delay action on an American Council of Life Insurers capital and surplus proposal.
The leaders of NCOIL, Troy, N.Y., are preparing to send a letter urging the National Association of Insurance Commissioners, Kansas City, Mo., urging it not to vote on the proposal.
An NAIC working group plans to hold a hearing on the proposal Jan. 27, and the NAIC expects the executive committee and the plenary, the body that includes all voting members of the NAIC, to vote on each of the 9 components of the proposal Jan. 29.
The ACLI, Washington, presented the proposal to the NAIC in November 2008.
The ACLI and other proposal supporters say current rules require life insurers to hold unrealistically conservative levels of capital and surplus. Implementing the 9-point proposal would let insurers make more efficient use of their resources and help to keep them financially healthy and competitive, proposal advocates say.
Opponents say insurers have not offered real proof of the need for changes in capital and surplus rules. Opponents also are criticizing the process the NAIC has used to consider the ACLI proposal.