PIA Opposes NAIC Disclosure Amendments

PIA Opposes NAIC Disclosure Amendments

NU Online News Service, Jan. 10, 10:10 a.m. EST?The National Association of Professional Insurance Agents said it opposes the version of the compensation disclosure model law amendments passed last week by the National Association of Insurance Commissioners.[@@]

The Alexandria, Va.-based association said it vows to continue working to secure changes to improve "the deeply flawed model."

In its statement, PIA's National Executive Vice President and Chief Executive Officer Len Brevik said, "It would be unfair to the NAIC, and we would be untrue to our principles, if we were to say or imply that we do not oppose this model as it is currently constituted. We do not support this model; we oppose it. PIA will work to improve a bad result."

On Dec. 29, the NAIC passed, by a vote of 30-15, amendments to the producer modeling law outlining compensation disclosure procedures for the states to adopt. Another section dealing with who the act would apply to was tabled for 90 days for further consideration.

While supporting the regulator's efforts, PIA faulted the act for casting a wide net to include all insurance transactions and for other deficiencies with the amendments.

Patricia A. Borowski, PIA senior vice president, faulted the NAIC for what appears to be an assumption among regulators that the alleged abuses uncovered by New York State Attorney General Eliot Spitzer are "indicative of a widespread market problem among all insurance producers and carriers."

"That is untrue and unfounded," she declared.

"It is with a great sense of sadness and regret that we cannot support this model and are compelled to oppose the NAIC, an organization PIA steadfastly supports," she added.