The Personal Lines Market Regulatory Framework (EX) Working Group met on Saturday morning in St. Louis and introduced a draft white paper entitled "Personal Lines Regulatory Framework."
The white paper, developed primarily by NAIC staff and based, in part, on comments received earlier by the working group, is being pursued after attempts to reach consensus on a model law failed. The working group had been charged with developing a model law that could serve as the official NAIC position on personal lines rate regulation, but, after receiving comments from the working group members, industry representatives, and consumer groups, the chairman decided that a model law was not feasible.
The draft white paper currently includes sections on historical perspective, perspectives of insurers and consumers, the theory of regulation, personal lines products as commodities, economic theory of competitive markets and insurance, rate regulation versus price controls, and recommendations, a section not yet completed.
The working group accepted a few preliminary comments on the draft paper.
The chairman stated that written comments on the draft would be accepted for 30 days and indicated that the working group would conduct several conference calls prior to the NAIC’s winter national meeting in San Antonio.
Readers are encouraged to review the working group’s draft white paper and submit any comments to Marsha Harrison, NAMIC’s Regulatory Affairs Counsel, for incorporation into NAMIC’s written remarks next month.
Direct questions to NAMIC's Regulatory Affairs Counsel Marsha Harrison.