NCOIL Readopts Modernization Act
NU Online News Service, Nov. 26, 3:25 p.m. EST?States' insurance lawmakers, at their recently held annual meeting of the National Conference of Insurance Legislators, readopted an NCOIL Property-Casualty Insurance Modernization Act.
The model act, NCOIL stated, is part of a financial modernization package to streamline the way states regulate insurance. The readopting of this model act, the group said, represents a "strong action to encourage modernization of state rate regulation."
The model act, first adopted in July 2001, establishes a use-and-file rate regulatory system for personal lines of insurance; a no-file system for commercial lines; and an exemption from rate and regulatory requirements for sophisticated commercial insurance providers.
NCOIL also adopted a measure called Resolution in Support of Flex-Rating as an interim step toward rate regulation based more on open competition.
The resolution, NCOIL said, acknowledges both Congress' push for state-level, speed-to-market reforms and supports flex-rating as an intermediate step towards more competition-based rate-regulatory system.
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