The National Association of Insurance Commissioners hasdisbanded a working group on class action litigation, apparentlysatisfied that such suits against the insurance industry do notpose a serious threat to the regulatory process.

The action came during the group's winter meeting earlier thismonth, when it disbanded the Class Action Litigation WorkingGroup.

Steve Parton, a representative from the Florida Office ofInsurance Regulation, said the lack of compelling evidence from aRand study currently underway on the subject indicated the group'swork was complete.

At the meeting, Nick Pace of the Rand Institute for CivilJustice said that under some circumstances, class action litigationcan act as a shadow mechanism for regulation.

The results of the study will be available early next year. Thesurvey asks company insurance lawyers to evaluate class actionsuits and the impact of those suits on the regulatory process.

Earlier this year, a committee of the American LegislativeExchange Council approved a model law that would limit the abilityof trial lawyers to file class action suits that undermine theauthority of state regulatory agencies.

Robert Detlefsen, public policy director for the NationalAssociation of Mutual Insurance Companies, urged the NAIC panel toadopt such a measure earlier this year.

He said the Avery vs. State Farm case, dealing with the use ofaftermarket auto parts, is the kind of class action suit that seeksto overturn regulatory decisions made by state legislators andregulators.