Market Conduct Streamlining Efforts Proceed

Market Conduct Streamlining Efforts Proceed

By Jim Connolly

NU Online News Service, July 21, 10:37 a.m. EDT?Several initiatives, both legislative and regulatory, are advancing as state representatives attempt to show that states can effectively regulate market conduct insurance practices.

On the legislative front, the National Conference of Insurance Legislators, Albany, N.Y., announced last week that it will start drafting a market conduct model law to provide consumer protection and market uniformity.

The model could be ready for examination by NCOIL members in November at the organization's fall meeting, according to Tim Tucker, NCOIL director of state-federal affairs, Washington. A completed model could be ready for the 2004 legislative session, he said.

In a statement, NCOIL President State Rep. Kathleen Keenan, D-St. Albans,Vt., said, "Market conduct reform is a cornerstone of insurance regulatory modernization. Creating a more streamlined and uniform insurance market conduct regulatory regime has been a top priority of NCOIL.

"The current system of market conduct regulation does not adequately focus on specific problems in the insurance marketplace, but rather on arbitrary factors."

Even as NCOIL announced its intention of proceeding with its plan to develop a model, regulators continued work of the National Association of Insurance Commissioners, Kansas City, Mo., to develop regulatory efficiencies such as a market conduct annual statement and data analysis calls for both the life-health and property-casualty industries.

Mr. Connolly is a senior editor with National Underwriter's life-health edition.