Regulation/Legislation

The National Association of Insurance Commissioners (NAIC) plans to release a draft white paper on Chinese drywall problems by the summer, the association's Catastrophe Insurance Working Group was told.

Although President Barack Obama signed into law last week historic legislation that promises to expand health coverage for tens of millions who are uninsured while protecting those who already have insurance, the battle over reform is far from over.

These are certainly challenging times for the property and casualty insurance industry, given the stagnant economy, a soft commercial lines market and calls in Congress to impose new regulations as part of broader financial services reform.

The NAIC has put on hold its National Insurance Supervisory Committee proposal, which would have seen regulators develop uniform standards with the threat of federal intervention for states that did not comply.

Insurers, balking at having to help pre-fund a bailout authority for systemically risky companies, have secured a key change in financial services reform legislation that will reportedly limit the assessment to one major insurance carrier.

Regulators should work with the insurance industry to eliminate confusing contract language that challenges even skilled lawyers, a consumer representative said.