The officers of the National Conference of Insurance Legislators say a National Association of Insurance Commissioners coordination proposal would weaken state authority.
“We have grave and fundamental concerns with the substance, process, and politics of this proposal,” the officers of NCOIL, Troy, N.Y., write in a letter to the officers of the NAIC, Kansas City, Mo.
The NAIC developed the National Insurance Supervisory Commission proposal in response to complaints from insurers and others about variations in state insurance regulatory requirements and what critics say are delays in getting states to adopt and implement generally accepted rules and rule changes.
A NISC discussion draft calls for states to join NISC voluntarily. Once states joined NISC, NISC would oversee insurance regulation “without further state legislative action” in areas such as life insurance, producer licensing and company licensing, according to an NCOIL summary of the draft.
NISC would help the states work with the federal insurance office that Congress has proposed creating.