Reacting to efforts to federalize insurance regulation, anational legislators group said it will pay for a study of thecurrent state regulatory system.

Susan Nolan, executive director of the Troy, N.Y.-based NationalConference of Insurance Legislators, said a formal request for bidson a study was sparked in part “because of recent attempts by thefederal government to take a larger place in insuranceregulation.”

While state officials defend a non-federal system as the bestway to regulate insurance, Ms. Nolan said there is a “need to lookat it and make sure its running as well as it can.”

“Is it working well? Is there a way for it to work better? Wewant to make sure we're doing everything to make it work well,” sheadded, likening the study to a mechanic's check of an automobile.“We want to make sure all parts are working well.”

NCOIL–through its non-profit, non-partisan Insurance LegislatorsFoundation–has released a request for proposal for a report to beentitled “A Study on State Authority: Making a Case for ProperInsurance Oversight.”

Ms. Nolan said the cost of the study will not be known untilbids are evaluated. “We would be raising funds when we see what theamount is going to look like,” she explained.

In the past, the foundation has secured funding from federalagencies, industry groups and non-industry groups, she said.

The request for study proposals comes, NCOIL noted, after“recent events have blurred the lines of responsibility regardingstate insurance regulation.”

NCOIL said such developments include investigations into brokerdisclosure and finite reinsurance, as well as the introduction oftwo pieces of federal legislation–one calling for optional federalchartering of insurers, and other for federal benchmarks under theState Modernization and Regulatory Transparency Act.

The organization also cited the movement toward financialmodernization and increasing globalization of insuranceoperations.

NCOIL said its study would address:

o The nature and history of regulation over the business ofinsurance.

o Laws, rules and procedures that enumerate the jurisdictionalresponsibilities of officials in governing insurance policy andrelated consumer protections–including issues regarding theauthority that may be due non-profit corporations and similarentities.

o Case studies that help explain the evolution leading to thecurrent insurance regulatory environment, including the growth ofassets and of information utilization and security.

o The extent and effectiveness of intra-governmentalcommunication and cooperation regarding insurance law.

o The impact that functional regulation, as established by theGramm-Leach-Bliley Act of 1999, has had on insurance oversight andresponsibility

o The consequences of federal preemptive measures on insurancepolicymaking

o The role played in insurance public policy by organizationssuch as NCOIL the National Association of Insurance Commissioners(NAIC), the National Governors Association (NGA), and the NationalAssociation of Attorneys General (NAAG), among others.

Interested parties can contact Ms. Nolan by mail (385 JordanRoad, Troy, N.Y. 12180), telephone (518-687-0178), e-mail([email protected]) or fax (518-687-0401).

The request for proposal is on NCOIL's Web site, atwww.ncoil.org. The deadline for proposal submissions is Jan. 5,2007, at 5 p.m. EST.