INDIANAPOLIS (Dec. 12, 2005)—The National Association of Mutual Insurance Companies (NAMIC) welcomed the decision to do no further work on a model law regulating the use of claims databases for underwriting purposes, reached by the by the Market Regulation & Consumer Affairs (D) Committee at the NAIC winter meeting Tuesday in Chicago.
“The Committee’s decision not to go forward with development of a model law on this issue is a welcome event,” said Regulatory Affairs Counsel Marsha Harrison. “Underwriting freedom has been an important issue on NAMIC’s State and Regulatory Affairs legislative agenda and remains a primary issue for 2006.”
A year ago, then Committee Chair and Oregon Insurance Commissioner Joe Ario suggested that perhaps his Committee should take a look at the industry’s use of claims databases such as Comprehensive Loss Underwriting Exchange (CLUE). Ario suggested the NAIC might want to develop a model law regulating the use of such databases for underwriting purposes.
The committee held several discussions on CLUE in early 2005 and then conducted a public hearing at the NAIC summer meeting in Boston in June, taking testimony and comments from insurers, consumer representatives and vendors of claims database services.
At the committee wrap-up meeting, discussion of CLUE and the results of the public hearing were among the final items on the agenda. No one on the committee had any comments to make and, similarly, no one in the audience of interested parties offered any remarks. The current chair, Susan Voss of Iowa, indicated that the committee had no charge to work further on the project during 2006 and, there being no further discussion by the members of the committee, nothing further would be done.
“It seems that over the past six months, however, enthusiasm for the issue has faded,” said Harrison.
For further information, contact
Rick Nelson, APR
(317) 875-5250 Tel
(317) 879-8408 Fax
Posted: Monday, December 12, 2005 12:00:00 AM. Modified: Monday, December 12, 2005 3:17:09 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.