A National Association of Insurance Commissioners' task forcehas set the stage for likely approval of state accreditationstandards for regulation of risk retention groups in December.
The agreement constitutes a breakthrough because somecommissioners had recently voiced concern that allowing some statesto deviate from the NAIC Model Law on Credit for Reinsurance wouldprovide too much discretion and undermine the purpose of the modellaw, which is to ensure solvency of RRGs.
"I think we're focusing on the right issue now, which is thestandards set forth in the proposed regulation, which determinesthe commissioner's exercise of discretion," said Robert Myers Jr.,general counsel of the National Risk Retention Association, thetrade group for RRGs.
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