NAMIC Asks New Mexico Insurance Superintendent Not to Impose Unnecessary, Costly SOX-like Requirements on Small Insurers

NAMIC recently submitted written comments and provided testimony at a Public Regulation Commission’s Insurance Division public hearing on the adoption of a model audit rule for insurance companies urging the New Mexico PRC-ID to adopt the entire NAIC MAR The NAIC’s model was thoroughly debated and analyzed over a two-year evaluative process that considered how to best promote sound corporate governance practices and regulatory transparency without needless administrative costs and burdens on small insurers that would adversely impact market competition and the affordability of insurance for consumers.

New Mexico’s proposal fundamentally departs from the NAIC Model Audit Rule model in a number of significant and concerning ways. NAMIC raised the following issues:

The NAIC MAR is a compromise model that should be implemented and evaluated before being discarded by the New Mexico Division of Insurance. It is flawed reasoning to assume that excessive regulatory oversight automatically equates to more effective regulatory oversight. The NAIC model has been adopted in 32 states and under deliberation in virtually every other jurisdiction.

Direct questions to NAMIC State Affairs Manager Christian Rataj.