Regulator: Another Data Call Set For Insurers

Consequently, regulators will be taking a closer look at these companies to find out why they varied from most other insurers, said Ms. Stead, who heads up the market analysis work group at the National Association of Insurance Commissioners, Kansas City, Mo.

Because regulators have found the information so valuable, both the life and property-casualty data calls will be repeated, she said.

For life insurers, data for calendar year 2003 will be due in April 2004, and for property-casualty insurers, dates are under discussion, she said.

Work on data call questions for life companies will not reflect major changes, but could include some changes to definitions, she said.

What is of concern to life insurers is that the data call be done in a uniform way rather than in a way that amounts to nine mini exams, according to Linda Lanam, vice president and general counsel with the American Council of Life Insurers, Washington.

Ms. Lanam cited the example of one company that was providing data and had a market conduct examination called by one of the states participating in the pilot project.

On the issue of policy loans, Ms. Lanam said it is possible that large totals may simply reflect a series of small policy loans built up over time rather than a large policy loan indicative of replacement activity.

Before a new data call is issued, the initial one should be completed and analyzed, said Don Cleasby, assistant general counsel with the National Association of Independent Insurers, Des Plaines, Ill. Any data call should be prospective and not retroactive, according to Cleasby.

The collection of data by companies becomes more complicated if data requested is changed from the first round, he added

Lenore Marema, vice president-legal and regulatory affairs with the Alliance of American Insurers, Downers Grove, Ill., says that the Illinois insurance department, which has collected data, has provided a template for collecting data.

But more generally, she wondered if budget-strapped state departments would have the resources to collect and analyze data.

Separately, the National Conference of Insurance Legislatures, Albany, N.Y., said that an initial draft of a planned market conduct model law could be out for review by Aug. 25.

A hearing on the model is planned for Sept. 12 in Chicago, according to Tim Tucker, director of state-federal affairs in NCOIL's Washington office. The model could be ready for adoption by NCOIL at its annual meeting in Santa Fe, N.M., in November, he continued.

Jim Connolly is a senior editor with NU's Life-Health edition.