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

Susan Nolan, executive director of the Troy, N.Y.-based National Conference of Insurance Legislators, said a formal request for bids on a study was sparked in part “because of recent attempts by the federal government to take a larger place in insurance regulation.”

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

“Is it working well? Is there a way for it to work better? We want to make sure we're doing everything to make it work well,” she added, 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 Legislators Foundation–has released a request for proposal for a report to be entitled “A Study on State Authority: Making a Case for Proper Insurance Oversight.”

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

In the past, the foundation has secured funding from federal agencies, 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 regarding state insurance regulation.”

NCOIL said such developments include investigations into broker disclosure and finite reinsurance, as well as the introduction of two pieces of federal legislation–one calling for optional federal chartering of insurers, and other for federal benchmarks under the State Modernization and Regulatory Transparency Act.

The organization also cited the movement toward financial modernization and increasing globalization of insurance operations.

NCOIL said its study would address:

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

o Laws, rules and procedures that enumerate the jurisdictional responsibilities of officials in governing insurance policy and related consumer protections–including issues regarding the authority that may be due non-profit corporations and similar entities.

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

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

o The impact that functional regulation, as established by the Gramm-Leach-Bliley Act of 1999, has had on insurance oversight and responsibility

o The consequences of federal preemptive measures on insurance policymaking

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

Interested parties can contact Ms. Nolan by mail (385 Jordan Road, Troy, N.Y. 12180), telephone (518-687-0178), e-mail (info@ncoil.org) or fax (518-687-0401).

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

Special Reports /

Bids Sought For State Insurance Regulation Study

Related Stories

Recommended For You