NCOIL Invites State Leaders To Discuss Financial Reform Issues

NU Online News Service Aug. 30, 3:34 p.m. EDT

With an eye toward broad state consensus on financial services reform, the National Conference of Insurance Legislators (NCOIL) is inviting state leaders from across the country to a summit to discuss current regulatory issues.

The summit, called the inaugural "State Leader Summit: Working Session on Financial Modernization," will be held Nov. 19 in Austin, Texas.

In a letter to presidents and chairs of the major organizations of state officials, NCOIL President and Kentucky Rep. Robert Damron, D-Nicholasville, wrote: "NCOIL believes strongly that state leaders need to work together to modernize insurance oversight. We feel that it would benefit all if public policymakers made an effort to identify and close gaps in our present regulatory system.

"As evidenced by recent federal initiatives, if the states do not do it, the federal government will."

Speaking after delivery of the letters, Rep. Damron noted that NCOIL hopes to bring together officials "from across the state spectrum to hammer out specific modernization initiatives that we can all support. We have long talked about promoting uniformity and reciprocity in 'certain key areas,' and Nov. 19 will provide that opportunity. The time for action is now."

Rep. Damron continued, "While we provided our colleagues with NCOIL positions on market conduct, producer licensing and surplus lines regulation, we welcome a full-throated debate on policy alternatives and on other issue areas."

He added that NCOIL "does not have a monopoly on ideas and looks forward to input from our state colleagues to advance consensus positions that can be taken back to our respective states."

Rep. Damron's letter attached NCOIL policy statements to:

o Establish uniform rules for a market conduct annual statement (MCAS) process and for market conduct examinations.

o Support uniform/reciprocal producer licensing requirements and full implementation of a National Insurance Producer Registry (NIPR).

o Endorse the concept of a Surplus Lines Multi-state Insurance Compliance Compact (SLIMPACT).

The letter was sent to the presidents/chairs of the Council of State Governments (CSG), National Association of Attorneys General (NAAG), National Association of Insurance Commissioners (NAIC), National Conference of State Legislatures (NCSL), North American Securities Administrators Association (NASAA), and National Governors Association (NGA).