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NAMIC 2002 National State Legislative Agenda

I. Personal/Commercial Lines Modernization

Summary: The issues of personal and commercial lines modernization are central to maintaining state-based regulation. NAMIC, working with our state and national trade partners, is pursuing the NCOIL Property & Casualty Modernization Model Act as the vehicle for change in states. Our industry coalition has targeted states (see attached list) for action regarding both personal and commercial lines.

II. Credit Scoring

Summary: Efforts are underway in several states to either ban or severely restrict the use of credit by insurers in both rate making an underwriting. Using a credit score in combination with traditional underwriting factors has proven to be an effective tool for insurers. NAMIC is opposing efforts to ban the use of credit and is supporting measures that allow for credit to be used along with other factors.

Target states: IN, WI, OH, MO, MN (may develop others)

III. Privacy

Summary: Privacy continues to be an issue in many states. NAMIC will oppose any efforts that create privacy standards that are more restrictive than GLBA. Additionally, we will pursue GLBA based language in states that currently have no privacy law.

Target states: MN (no law) and defensive activity where needed.

IV. Producer Licensing

Summary: We made substantial progress in 2001 by passing producer-licensing reform in 6 of our 7 target states. Nationwide, 37 states have now passed the producer-licensing model which means the NARAB deadline has been met. However, large market states have failed to act and theses states will be the focus of our activity in 2002.

Target states: FL, NY, MI, OH and PA.

V. Terrorism issues

Summary: Depending on the nature of any federal solution to the terrorist reinsurance issues the industry could face legislation on a variety of related issues in the states. Initially, mandated coverage of terrorism events seems the most likely. NAMIC will oppose any measure that creates such a mandate.

Target states: Defensive efforts where needed, initially in VA, PA, NY and NJ.

VI. Building Codes

Summary: NAMIC continues to work with our industry colleagues through the Insurance Building Code Coalition (IBCC). The IBCC is focused on passing a uniform state wide minimum code in states where no such code is in place.

Target states: KS, defensive in FL. (Coalition still identifying others)

VII. UCITA and the Uniform Arbitration Model. (Both defensive)

Summary: UCITA is a carry-over issue from our 2001 agenda. This model would dramatically tip the contractual playing field in favor of computer software developers. The Uniform Arbitration Model is from the same group that produced UCITA, among its troubling provisions are new powers that would allow arbitrators to award punitive damages and attorney fees.

Target states: NAMIC will oppose these two models wherever they are initiated.