Several key issues remain unresolved in the Criminal HistoryRecord Check Model Act proposed by the National Association ofInsurance Commissioners, according to the Property CasualtyInsurers Association of America. The issues at question must beresolved in connection with National Treatment in CoordinationWorking Group's efforts to revise the Uniform Certificate ofAuthority Application so that there are consistent and efficientcompany licensing requirements among the states, the associationbelieves.


“PCI understands the need for information on company officersand directors in connection with company licensing and othercorporate transactions,” said Lenore Marema, PCI's vice president,industry and regulatory affairs. “There also is a need, however, toconsider the overall details, timing, and costs for companylicensing so that the NAIC's reform efforts are exactly that,rather than expensive add-ons to the current system. If the NAICnow wants to move to a centralized system of coordinated criminalbackground checks for company officers and directors, it mustreopen the existing compromise in the UCAA on the biographicalaffidavit process.”


PCI has expressed concern that the current draft of the modelspecifies that company licensing processes under the UCAA requireboth criminal background checks and biographical affidavits.Because only a few states require fingerprints and criminalbackgrounds in company licensing transactions, the drafters of theUCAA rejected that requirement and, instead, included a processunder which license applicants submit the NAIC Uniform BiographicalAffidavit for their officers and directors, which then must bereviewed by third party vendors.

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