An influential lawmaker pushing the nation's insurance commissioners to open up their locked-door executive sessions suggested today that states might seek a cut of the revenue generated by sharing data via the regulators' national organization.
Rhode Island State Rep. Brian Kennedy, D-Hopkinton, vice president of the National Conference of Insurance Legislators, on June 1 sent out a letter to states' legislators discussing the open meetings issue and calling on them to consider action to stop closed sessions conducted by the National Association of Insurance Commissioners.
While many of these legislatures are currently not in session, he said that when they return they can consider the issue.
Mr. Kennedy said he has spoken with Rhode Island's finance committee chair about why state data is being provided free of charge to the NAIC when it is not complying with state open meetings laws.
Rep. Kennedy said that it is reasonable for cash-strapped states to ask for a percentage of the revenue of data they supply. For instance, he said, in Rhode Island there is a budget deficit of over $300 million that had to be closed, and a share of such revenue would be appropriate to consider. "I don't see why not. They are making money off of the information," said Mr. Kennedy.
The NCOIL vice president's comments followed a June 15 opinion from North Dakota Attorney General Wayne Stenehjem that there was no violation of North Dakota law if state Insurance Commissioner Jim Poolman or his staff attend closed sessions of the Kansas City, Mo.-based NAIC.
In reaction, North Dakota State Rep. George Keiser, R-Bismarck, who asked for the attorney general's ruling with state Rep. Frank Wald, R-Dickinson, said he would introduce legislation to change the North Dakota law regarding official attendance at closed sessions.
Rep. Kennedy said that Mr. Stenehjem by his ruling has given Rep. Keiser "the framework to close any loopholes" in open meetings law.
Rep. Kennedy has been consistently vocal in his opposition to closed meetings that leave out input from legislators and others in policy discussions. He does concede that in certain cases including discussions of specific individuals or companies, pending litigation or trade secrets, closed meetings are warranted.
"It is ultimately for the good of state-based government to encourage legislators to get more involved in what is going on," said Rep. Kennedy.
He suggested that a lawmaker liaison committee be established to attend quarterly NAIC meetings. He said the panel could include all legislator groups such as the National Conference of State Legislatures, Denver, as well as NCOIL. "We should be working in tandem. We shouldn't be viewed as the enemy," he said.
Rep. Kennedy said NAIC lack of communication with lawmakers "is quite baffling." He noted that while he has been treated with courtesy by NAIC President-elect and Kansas Commissioner Sandy Praeger, Kay Noonan, NAIC general counsel, as well as some commissioners, he has had no contact with NAIC President and Alabama Insurance Commissioner Walter Bell since an exchange of letters before the summer meeting in San Francisco.
"He didn't even acknowledge the fact that I was in the same room as him" in San Francisco, "but I guess he had a meeting to run," Rep. Kennedy said.
Kentucky State Rep. Robert Damron, D- Jessamine, said he does not agree with the North Dakota attorney general's decision permitting state officials attendance at closed meetings. He noted that the NAIC takes up topics that should be public such as the accreditation of states.
He said he has been told by commissioners and received a letter today from the NAIC saying that his name on a do-not-admit list at an NAIC Commissioners Roundtable was an error and apologizing for the mistake. "These are honest people and you have to take them at their word," he added.
Mr. Damron said that it is important that both NCOIL and NAIC work together and continue dialogue because the "main goal of the NAIC and NCOIL is to maintain state oversight of the industry."
On the issue of providing state data to the NAIC, Mr. Damron said that he would have to look at the issue more closely and determine how much of Kentucky's information is used and remarketed and whether the state is at liberty to share information and to charge for it.
This article updated 9:28 a.m. June 20.
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