NCSL Task Force Holds Seventh Meeting on Modernization
On March 22, 2003, the National Conference of State Legislators' (NCSL) Executive Committee Task Force to Streamline and Simplify Insurance Regulation held its seventh meeting. Many of the task force's members are new, reflecting the changes in state legislatures pursuant to the November 2002 elections. Therefore, much of the meeting was devoted to educating the new members about the NAIC's proposed Interstate Insurance Product Regulation Compact. While task force's co-chairs and other longtime members appear to support the compact, many of the new members are reluctant to give their approvals until they have a bit more time to study it and ask questions. As a result, the task force has scheduled another meeting on April 24 to continue discussing the compact.
The task force also plans to begin discussing principles of property and casualty simplification and modernization at the April meeting.
What It Means to Agents: While the NAIC continues to be the lead organization in terms of insurance modernization and simplification, it is important that the state legislative organizations such as NCSL and NCOIL also study and propose options. Any major modernization and simplification initiatives will require state legislative approval. It improves efficiency to get legislators' input at the front end rather than later down the line. It also demonstrates to Congress that state legislators and regulators work together effectively to oversee and regulate insurance.