Two key state legislators who are demanding that the NationalAssociation of Insurance Commissioners end locked-door proceedingsmanaged to get by a security guard last week and secure admittanceto part of a closed NAIC executive session.

The confrontation here at the NAIC quarterly meeting involvedRhode Island State Rep. Brian Kennedy, D-Hopkinton, who is vicepresident and president-elect of the National Conference ofInsurance Legislators, and Kentucky State Rep. Robert Damron,D-Jessamine, NCOIL's treasurer.

Rep. Damron said when he arrived at the NAIC CommissionersRoundtable session here–which reviews issues of import that ariseduring quarterly 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 Kay Noonan, NAIC's legalcounsel–spoke with him and apologized, explaining that it was amistake.

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

Both Rep. Damron and Rep. Kennedy, before they were given NAICadmission packets to the session, were asked to sign statementsthat they were legislators and did not have connections to theinsurance industry.

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

Prior to attending the NAIC session, Rep. Kennedy had writtenNAIC 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 NAIChas a “liberal open meetings policy” and that he stands behind theright to close sessions when required.

Last week, Rep. Kennedy said that although he saw progress inthe fact that he was allowed to stay during this particularsession, all NAIC sessions should be open.

In fact, Rep. Kennedy said that at least one commissionerexpressed the opinion during the roundtable session that if theNAIC wants to get state legislation enacted, 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 roundtables,should be open to everyone including consumer representatives andjournalists. He said NCOIL and other policy-making organizationssuch as the National Conference of State Legislatures keep theirmeetings open.

Rep. Damron said he was “highly offended” when his name showedup on the “Do Not Admit” e-mail, and he told the guard not todestroy the e-mail because he would want to obtain a copy. “Itbecame very personal this morning,” he said.

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

In his own legislature, Rep. Damron said he has fought to makesure meetings are open because he knows that if they are keptclosed, “you risk losing the confidence of the public.”

Rep. Kennedy on June 1 sent a letter to the 50 insurance statelegislative committees.

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.”

Rep. 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 to think thattheir oath of office and rules of conduct cease to apply when theycross state geographical boundaries into another jurisdiction,” hesaid, “and yet the only reason that they sit at the executive tableduring these meetings is because of the oath of office they tookafter appointment by the executive branch, or in some cases by theelection process.”

He added that “no insurance commissioner or supervisor has theright to ignore the laws of their respective state, and thatincludes open meetings laws.”

Rep. 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.”