Consumer group representatives are asking the National Association of Insurance Commissioners when they will be able to speak their peace on a proposed market conduct analysis format.

In a letter today to NAIC President Sandy Praeger, the Kansas commissioner, representatives who have public funding to attend NAIC sessions, noted that they have received no response to a July 8 e-mail requesting a chance to express their view and nor information on the project nor an explanation as to why a conference call to discuss the issue was cancelled.

The letter written by Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, expressed disappointment in the Kansas City, Mo., organization's "unresponsiveness."

It read, "I ask that the NAIC show at least the same responsiveness to consumer concerns as it does to industry concerns. I also ask that the NAIC operate with a reasonable level of public accountability, such that an issue scheduled for public discussion does not simply disappear without explanation."

Mr. Birnbaum said in an interview with that the market conduct analysis project is "of critical importance to consumers. The NAIC as an organization needs to be more responsive."

The concern of consumer reps, he says is that the NAIC addresses issues such as speed to bring products to market which are important to consumers but ignores consumer issues.

An NAIC spokesperson did not immediately respond to a call seeking reaction to the consumer complaints.

Mr. Birnbaum also questioned the passage of a resolution on market conduct analysis by the National Conference of Insurance Legislators, Troy, N.Y. during its summer meeting last week.

Mr. Birnbaum noted that the resolution came up without input from all parties.

NCOIL discussed the market conduct analysis project on July 11 before adopting the resolution which states among other things that:

o No state legislature has required a fundamental change or expansion in the nature of the insurer annual statement to include market conduct data.

o NCOIL has concerns regarding NAIC authority to collect market conduct data as part of an annual statement filing.

o NCOIL questions whether the costs of compliance might outweigh the benefits to consumers, insurance companies, regulators, and state legislatures.

o NCOIL has concerns regarding the confidentiality of market conduct data, since such data has not before been made public.

The resolution commits to working with the NAIC and individual state regulators.

Special Reports /

Consumer Reps To NAIC: Let Us Speak On Market Conduct

Related Stories

Recommended For You