Commish's Huddle To Have 6 Newcomers

By Jim Connolly

NU Online News Service, Jan. 31, 2:00 p.m.EST--When state insurance commissioners meet Feb. 3-4 inDenver for their annual huddle and strategy session that sets thetone for the year, it will be a first time for sixparticipants.

Mike Pickens, the new president of the National Association ofInsurance Commissioners, Kansas City, Mo., spoke to NationalUnderwriter of the turnover and about major issues that willbe discussed at the session and advanced this year.

The freshman class of commissioners is the largest group in adecade. Currently, there are 13 new commissioners, but that numberis expected to reach up to 23 sometime this year.

Mr. Pickens said the NAIC is establishing a mentor program wherenew commissioners can work with a seasoned commissioner and getbackground on any issue.

Kiosks will also be made available so new commissioners canlearn more about NAIC services and resources, he added.

Mr. Pickens said that despite staff turnover at insurancedepartments, there can be a smooth transition, because "there aregood people behind those people that are willing to step up. Wehave a deep bench in the states."

If the NAIC is going to educate its own on the issues, it isalso going to undertake an education process of state and federallawmakers.

The NAIC, Mr. Pickens said, will continue to bring its messageto federal lawmakers through its Washington office and "willmaintain more of a presence" given issues that will come up inCongress.

For instance, he said that a discussion of a single federalregulator could come up this year.

NAIC is already part of the discussion on the Terrorism RiskInsurance Act of 2002 and continues to work on remaining questionssuch as whether captive insureds or self-insureds should beincluded under the scope of the act.

Another issue that is being raised is whether states performingmarket conduct examinations should be the "primary enforcers" formaking sure there is compliance among insurers with the USA PatriotAct's money laundering provisions.

At a grass roots level, Mr. Pickens said that a new program,ASSURE, will be introduced at the spring NAIC national meeting inAtlanta from March 8-11. The Alliance of Sound State UniformRegulatory Efficiency will be used as an education tool for stateand local lawmakers, he adds.

When the NAIC spreads the word about its work, the message willinclude some of last year's steadies:

? Interstate Compact, a project to develop a single point offiling for insurance products, spearheaded by immediate past NAICpresident and Iowa Insurance Commissioner Terri Vaughan.

? Market conduct and consumer affairs, headed up by NAICSecretary-Treasurer and Oregon Administrator Joel Ario.

? Work on ensuring proper payment of Holocaust claims, headed upby returning California Insurance Commissioner John Garamendi.

There will also be some new items that Mr. Pickens said the NAICfaces this year. For example, the General Accounting Office isexpected to deliver a report this spring or summer that could raiseconcerns about the market conduct process, he said.

"Now is the time to move market conduct and health issues to thefront of the line," he said.

In fact, health care will be a major focus this year, with agoal of focusing on cost drivers and finding market-basedsolutions, he added. Cost drivers he cites include medical care,pharmaceuticals and utilization.

Potential solutions, he explained, could include medical savingsaccounts, or health insurance purchasing pools that are notassociation health plans, but have features of AHPs which are smallgroup insurance pools that spread risks across a state.

In Arkansas, Mr. Pickens said, small employers can participatein purchasing pools and health consumers can choose a plan with orwithout state mandates depending on budget.

The pool, he continued, would be with a licensed healthinsurance company, which would help ensure solvency since it wouldhave to meet regulatory standards.

Such plans have been "fairly well received by the businesscommunity," Mr. Pickens said.

In April or May, he said NAIC will meet with regulators in Chinato determine their needs in order for more U.S. companies to gainaccess to the Chinese market. Insurance regulators also will beworking Vietnam, Brazil, Chile and Russia, Mr. Pickens said.

International efforts are being headed up by Ernest Csiszar,NAIC vice president and director of the South Carolina insurancedepartment.

Heading up the Health Insurance and Managed Care "B" Committeewill be Janie Miller, Kentucky insurance commissioner.