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Insurance Regulatory Reform Not About States Rights; Prior Approval Has To Go, NAMIC Tells State Legislators

INDIANAPOLIS (July 11, 2005)—A top state advocate with the National Association of Mutual Insurance Companies has challenged state legislators to make the necessary changes to state insurance regulation or risk congressionally mandated reforms.

Senior Director of State Advocacy Neil Alldredge told members of the State-Federal Relations Committee of NCOIL that it would not be sufficient for state officials to go before Congress and say that states should continue regulating insurance “just because you have for more than a hundred years.”

“The issue is not states rights, it’s about actually making reforms to the present system of regulation” Alldredge said. “NCOIL has done a terrific job of identifying statutory fixes for the property-casualty industry and its customers. Now it’s time to take them back home and put them into law.”

Speaking during the NCOIL summer meeting in Newport, R.I., Alldredge specifically cited rate reform as the fundamentally most important reform for property-casualty companies. “Don’t make this more difficult than it needs to be; if your state has a prior approval law for p-c rates, repeal it. That single reform will make a dramatic difference in your marketplace and in the satisfaction of consumers,” he said.

NCOIL President Craig Eiland, a state representative from Texas agreed with Alldredge that NCOIL members need to “get off our behinds and pass the model laws in our states that we approve here.” Rep. Eiland recently secured passage of the NCOIL market conduct model act in Texas, the only state to enact it so far. He told the committee and those assembled that NCOIL had recently provided federal officials with a briefing of the steps NCOIL has taken to reform state insurance regulation.

Also participating in the hearing was NAIC President Diane Koken and representatives from the ACLI and optional federal charter proponents who gave their organizations’ views on federal activity regarding insurance regulatory reform.

For further information, contact
Rick Nelson, APR
(317) 875-5250

Founded in 1895, NAMIC is a full-service national trade association with more than 1,400 member companies that underwrite 43 percent ($196 billion) of the property/casualty insurance premium in the United States. NAMIC members account for 44 percent of the homeowners market, 38 percent of the automobile market, 39 percent of the workers’ compensation market, and 31 percent of the commercial property and liability market. NAMIC benefits member companies through advocacy, public policy and member services. Information about the association, its member companies and the property/casualty insurance industry can be found at NAMIC Online.

Posted: Monday, July 11, 2005 12:00:00 AM. Modified: Monday, July 11, 2005 2:58:04 PM.

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