NAIC Property and Casualty Committee Conference Call Recap
May 23, 2007
On May 23, 2007 we attended a conference call held by the National Association of Insurance Commissioners (NAIC) Property and Casualty Committee (“Committee”).
The Committee is comprised of various state insurance regulators.
Kevin McCarty, the Florida Insurance Commissioner, led the conference call discussion, which covered insurance model law development procedures, requests for the development of five (5) model laws and a charge to study catastrophic modeling.
Model Law Development
Commissioner McCarty noted that there is a two-prong test that must be met in order for a model law to move forward for development: The issue involving the model law must necessitate a national standard and the issue must require uniformity among all states.
Model Laws Considered
Below is a list of the five (5) proposed national model laws that the Committee considered and the action taken on each:
1. Third Party Administrator Model Act- the Committee voted to proceed with the Act as a national guideline, but not a model.
2. Workers’ Compensation Coverage for Professional Employer Organization Arrangements Model Regulation- the Committee voted to proceed with the Regulation as a national guideline, but not a model.
3. Medical Malpractice Closed Claim Reporting Model Law- the Committee voted to proceed with this Law as a national model.
4. Title Insurers Model Act–the Committee did not take any action regarding this Act.
5. Title Insurance Agent Model Act–the Committee did not take any action regarding this Act.
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The first three items will next be considered by the NAIC Executive Committee.
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Catastrophic Modeling Study
Commissioner McCarty noted that the Committee would discuss whether to proceed with a study on catastrophic modeling during the upcoming NAIC meeting in San Francisco scheduled June 1 – 4, 2007.
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The above information is intended to be a general review of the developments that took place during the conference call. It is not intended to be a comprehensive analysis of any particular item. Should you have any questions or require additional information regarding this matter, please do not hesitate to contact this office.