NU Online News Service, Aug. 16, 3:13 p.m.EDT

SEATTLE–Looking to avoid a repeat of the problems thatnearly took down American International Group, a regulator saidinsurance commissioners are looking to state legislators to provideauthority to obtain information about a holding company'snon-insurance entities.

Citing the fall of American International Group, Ann Frohman,director of the Nebraska Department of Insurance, said that whileregulators are not seeking to regulate those non-insurance assets,they do need to be in a position to collect the information andmake some determination if those assets can adversely affect theinsurance entities.

This would then allow regulators to "have a discussion" aboutthose assets with the holding companies in an effort to avoid theAIG debacle, Director Frohman said.

Her comments came during the NAIC Summer National Meeting heldhere.

"You can't stop failure," she said, "but we can catch things andchange the thinking upstream."

Director Frohman also spoke to the NAIC's planned dealings oninternational issues with a new Federal Insurance Office (FIO),which will be established within the Treasury Department as part offinancial services reform.

She said working with the FIO would be a positive step becausethe industry needs a single voice on insurance trade issues.

"We need their assistance; it does make a lot of sense," shesaid. "Our job is to educate [the FIO]."

NAIC President and West Virginia Insurance Commissioner JaneCline said it is a "proud achievement" that insurance regulationhas been left in the hands of the states in the wake of theDodd-Frank bill. She added, though, that the industry can expect"much more engagement with our colleagues in D.C." with thecreation of the FIO.