SAN FRANCISCO–Two key state legislators who are demanding thatthe National Association of Insurance Commissioners end locked-doorproceedings managed to get by a security guard yesterday and secureadmittance to part of a closed NAIC executive session here.

The action at the NAIC involved Rhode Island State Rep. BrianKennedy, D-Hopkinton, who is vice president and president-elect ofthe National Conference of Insurance Legislators, and KentuckyState Rep. Robert Damron, D-Jessamine, NCOIL treasurer.

Mr. Damron said when he arrived at the NAIC CommissionersRoundtable session which reviews issues of import that arise duringquarterly meetings, his name was on a “Do Not Admit” list.

After he was denied entry by a security guard, Rep. Damron saidrepresentatives of the NAIC, including Andrew Beal and Kay Noonan,spoke with him and apologized, explaining that it was amistake.

He said he was told a “Do Not Admit” e-mail that the guard hadfound his name on was focused on issues of specific companies andother nonpublic discussions.

But both Rep. Damron and Rep. Kennedy, before they were givenNAIC admissions packets to the session, were asked to signstatements that they were legislators and did not have connectionsto the insurance industry.

Rep. Kennedy entered the meeting with a commissioner and stayedthrough the Commissioners Roundtable. For the last three items onthe agenda, he said that he was informed by Ms. Noonan, NAIC legalcounsel, that there were legal matters to be discussed and left themeeting.

Prior to attending this week's NAIC session here, Mr. Kennedyhad written NAIC President Walter Bell complaining that theorganization is “abusing the use and purpose of executivesessions.”

Mr. Bell, Alabama's insurance commissioner, has said the NAIChas a “liberal open meetings policy” and he stands behind the rightto close sessions when required.

Yesterday, Mr. Kennedy said that although he saw progress in thefact that he was allowed to stay during this session, all thesessions should be open.

In fact, Rep. Kennedy said that at least one commissionerexpressed the opinion during the roundtable session that if NAICwants to get state legislation enacted, then it would be to itsbenefit to invite legislators at least two to three times a year tothe roundtable meetings.

Rep. Damron said that as a legislator, he should have access tothe meeting unless it focuses on issues of specific companies orpersonnel or legal issues.

In fact, he said that meetings, including the roundtablemeetings, should be open to everyone including consumerrepresentatives and journalists. He said that NCOIL and otherorganizations such as the National Conference of StateLegislatures, Denver, keep their meetings open.

Rep. Damron said “he was highly offended” when his name showedup on the “Do Not Admit” e-mail and he told the guard at theroundtable session not to destroy the e-mail because he would wantto obtain a copy. “It became “very personal this morning.”

Although he said that he is waiting to see how the NAIC respondsin the future, he has left open the possibility of consulting hisstate attorney general in Kentucky over the NAIC's closedsessions.

In his own legislature, Mr. Damron said he has fought to makesure that meetings are open because he knows that if meetings arenot kept open, then “you risk losing the confidence of thepublic.”

Rep. Kennedy on June 1 sent a letter to the 50 insurancelegislative committees including Rhode Island State Sen. WilliamWalaska, D-Warwick.

In his letter, Rep. Kennedy informed his fellow lawmakers that“your insurance commissioner or insurance supervisor is violatingyour state open meetings law and the oath of office they took forthat position every time that they attend an NAIC meeting. The NAICis routinely holding executive sessions at its national meetings,despite the fact that regulators are discussing legislativestrategy issues that are not germane for calling such closedsessions.”

Mr. Kennedy continued that “the NAIC is abusing the use andpurpose of executive sessions by failing to conduct conferencebusiness in public. Insurance commissioners and supervisors seem tothink that their oath of office and rules of conduct cease to applywhen they cross state geographical boundaries into anotherjurisdiction, and yet the only reason that they sit at theexecutive table during these meetings is because of the oath ofoffice they took after appointment by the executive branch or insome cases by the election process.

“No insurance commissioner or supervisor has the right to ignorethe laws of their respective state, and that includes open meetingslaws.”

Mr. Kennedy also wrote that he is “unaware of any other privatenonprofit organization having the same right or privilege to assessfees against states in the manner utilized by the NAIC.”

In his letter to Sen. Walaska, Rep. Kennedy suggests:

o Writing a letter to your state attorney general regarding thefact that “your state commissioner is attending meetings at theNAIC at state expense and in their paid capacity are participatingin closed executive session meetings that violate the open meetingslaw.”

o Scrutinizing every proposal submitted by a commissioner orsupervisor that comes “with the imprimatur of the NAIC.”

o Considering attendance at an NAIC quarterly national meeting“to become enlightened on this mystical organization.”

o Considering holding hearings about the amount of money thatthe NAIC is profiting from the insurance information filed by yourstate into the NAIC insurance database.”