N.D. Lawmaker Questions NAIC Secrecy

North Dakota State Rep. George Keiser has written his attorney general seeking an opinion on the legality of state insurance regulators participating in National Association of Insurance Commissioners' meetings that bar the public.

The Republican representative from Bismarck asked Attorney General Wayne Stenehjem for an opinion as to whether or not Insurance Commissioner Jim Poolman's participation in an NAIC executive session on policy or regulatory issues is a violation of North Dakota's open record law.

"Can the state of North Dakota pay membership dues to belong to and participate in policy and regulatory discussions if said discussions and decisions occur in executive sessions not open to the public?" the letter asks.

Mr. Stenehjem's office has not returned a call seeking comment.

Mr. Poolman said Mr. Keiser certainly has a right to question the policy, "but I think he is off base, and I believe the opinion asked for will prove that."

Mr. Keiser said that if the attorney general returns an opinion favorable to the current status quo, he will introduce legislation next year barring the state's participation in the group if it does not open up its meeting policies.

National Conference of Insurance Legislators Vice President Brian Kennedy started this controversy with an exchange of letters with NAIC President (Alabama Insurance Commissioner) Walter Bell in which the state lawmaker called into question the purportedly excessive use of closed meetings.

Mr. Bell replied that the group has a liberal open meeting policy but maintained the right to close meetings when needed.

Mr. Kennedy, a Democratic state representative from Hopkinton, R.I., said he will send a letter to all 50 chairs of insurance committees of both upper and lower chambers alerting them to the allegedly excessive use of closed meetings.

"At the same time, that letter will raise the concern about the unique funding stream that the NAIC has devised and will suggest to legislators that perhaps a thorough examination and review should be completed at the state level regarding the operations and participation of the NAIC in relation to each state," he wrote.