PCI Issues Insurers for Action Alert on July 8 NAIC Meeting

 

The Property and Casualty Insurers Association of America (“PCI”) has issued an Insurers for Action Alert regarding a proposal scheduled to be heard at the National Association of Insurance Commissioners (“NAIC”) Executive Committee/Plenary meeting on Tuesday, July 8, 2008.  

The proposal would give the NAIC the authority to collect current Market Conduct Annual Statement (“MCAS”) Data through a supplemental filing to the NAIC Annual Statement Blank.

PCI requests that state insurance commissioners be urged to vote “no” on this proposal. 

To view state-by-state insurance commissioner contact information, click here.

 

The NAIC Executive Committee/Plenary meeting information is as follows:

Date: Tuesday, July 8, 2008

Time: 3:00 p.m. (EST)/2:00 p.m. (CST)

Items scheduled to be discussed include:

• Regulation and Consumer Affairs (D) Committee proposal for centralized data collection
• Consideration of the Medical Professional Liability Closed Claim Reporting Law for adoption

This teleconference is open to the public.  Interested parties must pre-register register to attend the teleconference and have an IP code to join the call.  

A member of this Firm will attend the meeting and provide a report on the proceedings. 

 

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

 

Insurers for Action Alert – NAIC Market Conduct Annual Statement (MCAS) Proposal

Add an important voice…PCI needs your help to stop a proposal that would give the National Association of Insurance Commissioners (“NAIC”) the authority to collect current Market Conduct Annual Statement (MCAS) Data through a supplemental filing to the NAIC Annual Statement Blank. The MCAS data would be reported on a state-specific basis with companies reporting data for each state in which they write homeowners and private passenger auto business and the NAIC would store the filed information in a centralized database.

Currently, the data is collected under a state’s market conduct exam or market analysis authority and is confidential under those laws. The new proposal being pushed by the NAIC greatly expands the program and raises fundamental privacy and confidentiality issues.

The NAIC Executive Committee and Plenary Session will consider adopting the proposal on Tuesday, July 8. Because this is a Plenary Session all fifty one commissioners will vote on the issue.

What you can do…Please contact your insurance commissioner today and urge him or her to vote NO on this proposal. Click here for state-by-state commissioner contact information.

Key points to communicate to your commissioner:

1. Requiring market conduct information to be submitted as a supplement to the public Annual Statement blank instead of the confidential MCAS abandons NAIC’s critical commitments to the insurance industry.
2. The inclusion of market conduct information in a supplement to the Annual Statement alters the scope and purpose of that form.
3. The public disclosure of information proposed raises fundamental privacy and confidentiality issues.
4. The information currently collected by the MCAS is not public and if made public would harm insurers competitively.
5. By becoming the repository of market conduct data that companies file with their state regulators, the NAIC is opening up the much larger question of its authority to collect and make available industry data.
6. While there maybe a need to develop a sustainable method for the collection and storage of MCAS data, further exposure and consideration of the options available before pursuing the creation of a NAIC Market Data Collection System need to be discussed. The NAIC must allow for a full vetting of the concerns in an open forum with interested parties to ensure a full and open discussion regarding the safeguarding of proprietary insurer data.

 

To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com