SAN FRANCISCO–Two key state legislators who are demanding that the National Association of Insurance Commissioners end locked-door proceedings managed to get by a security guard yesterday and secure admittance to part of a closed NAIC executive session here.

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

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

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

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

But both Rep. Damron and Rep. Kennedy, before they were given NAIC admissions packets to the session, were asked to sign statements that they were legislators and did not have connections to the insurance industry.

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

Prior to attending this week's NAIC session here, Mr. Kennedy had written NAIC President Walter Bell complaining that the organization is “abusing the use and purpose of executive sessions.”

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

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

In fact, Rep. Kennedy said that at least one commissioner expressed the opinion during the roundtable session that if NAIC wants to get state legislation enacted, then it would be to its benefit to invite legislators at least two to three times a year to the roundtable meetings.

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

In fact, he said that meetings, including the roundtable meetings, should be open to everyone including consumer representatives and journalists. He said that NCOIL and other organizations such as the National Conference of State Legislatures, Denver, keep their meetings open.

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

Although he said that he is waiting to see how the NAIC responds in the future, he has left open the possibility of consulting his state attorney general in Kentucky over the NAIC's closed sessions.

In his own legislature, Mr. Damron said he has fought to make sure that meetings are open because he knows that if meetings are not kept open, then “you risk losing the confidence of the public.”

Rep. Kennedy on June 1 sent a letter to the 50 insurance legislative committees including Rhode Island State Sen. William Walaska, D-Warwick.

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

Mr. Kennedy continued that “the NAIC is abusing the use and purpose of executive sessions by failing to conduct conference business in public. Insurance commissioners and supervisors seem to think that their oath of office and rules of conduct cease to apply when they cross state geographical boundaries into another jurisdiction, and yet the only reason that they sit at the executive table during these meetings is because of the oath of office they took after appointment by the executive branch or in some cases by the election process.

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

Mr. Kennedy also wrote that he is “unaware of any other private nonprofit organization having the same right or privilege to assess fees 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 the fact that “your state commissioner is attending meetings at the NAIC at state expense and in their paid capacity are participating in closed executive session meetings that violate the open meetings law.”

o Scrutinizing every proposal submitted by a commissioner or supervisor 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 that the NAIC is profiting from the insurance information filed by your state into the NAIC insurance database.”

Special Reports /

2 Lawmakers Penetrate NAIC Locked-Door Session

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