NCOIL Summer Meeting Preview: July 10-13

The National Conference of Insurance Legislators (“NCOIL”) will hold its Summer Meeting from July 10-13, 2008 in New York City. 

The following NCOIL Committees are scheduled to meet:

• Subcommittee on Natural Disaster Insurance Legislation
• Financial Services and Investment Products Committee
• Workers’ Compensation Insurance Committee
• Life Insurance and Financial Planning Committee
• Insurance Legislators Foundation Board
• Industry Education Counsel Board

Of note:  Several amendments sponsored by Florida Senator Steven Geller will be considered by the Subcommittee on Natural Disaster Insurance Legislation in its review of  A Resolution Regarding a New Approach to State Catastrophe Funds and Federal Mega-Disaster Assistance.  As initially drafted, the resolution would support a system in which optional state/regional catastrophe funds could serve as pass-through mechanisms for distribution of interest-free federal loans—payable over the course of 20 years—following qualified natural disasters.

To view the tentative meeting schedule, click here.

Supplemental meeting agenda highlights are attached for your review.  Items include: 

• The Executive Committee will consider current proposals regarding reinsurance collateral requirements, including a National Association of Insurance Commissioners (“NAIC”) Reinsurance (E) Task Force (“Task Force”) regulatory modernization framework, in light of a proposed Approved List of Reinsurers Model Act that has been before the Committee since 2002.  The approved list—which has served as a placeholder for the Committee as it received reports from NAIC leadership regarding the progress of its Task Force on Reinsurance—would provide for reduced collateral requirements for non-U.S. reinsurers meeting certain financial solvency criteria. 

• During the Insurance Legislators Foundation (“ILF”) Board meeting, the select Study on State Authority Subcommittee, comprised of NCOIL officers and past presidents, will discuss efforts to implement recommendations contained in an ILF Study on State Authority.  The Subcommittee also will discuss a second report  examining state statutes to determine delegation of insurance authority.  Note:  NCOIL President Representative Brian Kennedy (RI)—following Executive Committee adoption of the study recommendations at the 2007 Annual Meeting—formed the Subcommittee and charged it with considering implementation.  The ILF also will consider a related resolution regarding NCOIL resources to enhance state insurance regulation.

• The Property-Casualty Insurance Committee will consider a Resolution Supporting State Regulation of the Use of Credit Information in Personal Insurance sponsored by U.S. Representative George Keiser (ND).  It also will review the NCOIL State Flood Disaster Mitigation and Relief Model Act and consider amendments sponsored by Representatives George Keiser and Frank Wald (both of ND) to the insurance producer education requirements that would reflect recent state activity. 

• The State-Federal Relations Committee will consider a Resolution Opposing an NAIC Plan to Utilize the Annual Statement for the Centralized Collection and Dissemination of Market Conduct Data sponsored by Representative Robert Damron (KY).  The resolution expresses NCOIL concerns regarding NAIC authority to collect such market conduct data, the costs of compliance and confidentiality. 

• The State-Federal Relations Committee will consider a Resolution Concerning the Recent Use of Legal Settlements as Public Policymaking Instruments in the Insurance Arena sponsored by Rep. Greg Wren (AL) and Rep. Rich Golick (GA).  The resolution, among other things, expresses concern regarding the public policy implications of recent legal settlements with insurers and reaffirms the authority of state legislators to set insurance public policy.  The Committee will also consider a friendly amendment sponsored by Representative Craig Eiland (TX) in the form of a substitute resolution.

• The Subcommittee on Natural Disaster Insurance Legislation will consider a Resolution Regarding a New Approach to State Catastrophe Funds and Federal Mega-Disaster Assistance, as well as several amendments sponsored by State Senator Steven Geller (FL).  As initially drafted, the resolution would support a system in which optional state/regional catastrophe funds could serve as pass-through mechanisms for distribution of interest-free federal loans—payable over the course of 20 years—following qualified natural disasters.

A member of this Firm will attend the NCOIL Spring Meeting and provide a report on the proceedings.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.