A Reinforced Commitment: 

Insurance Regulatory Modernization Action Plan

• Introduction
  
  
• Principles & Goals
  
  
• Action Plan
  
  

  I..	Consumer Protection
  II.	Market Regulation
  III.	"Speed-to-Market" for Insurance Products
  IV.	Producer Licensing Requirements
  V.	Insurance Company Licensing
  VI.	Solvency Regulation
  VII.	Changes of Insurance Company's Control

CLICK HERE FOR A LIST OF STATE REGULATORY MODERNIZATION ACCOMPLISHMENTS!

Signaling its ongoing commitment to modernizing and harmonizing the state-based system of insurance regulation, the National Association of Insurance Commissioners (NAIC) has adopted (September, 2003) a regulatory modernization action plan, called A Reinforced Commitment: Insurance Regulatory Modernization Action Plan. The new plan builds on the NAIC's Statement of Intent - The Future of Insurance Regulation, which was initially adopted in March of 2000.

"This next step is necessary and appropriate now that the major goals and objectives of the Statement of Intent have been achieved," said NAIC President Mike Pickens, who also serves as Commissioner of Insurance for the state of Arkansas. " NAIC members are proud of what has been accomplished recently in advancing uniformity and reciprocity in the regulatory environment, while recognizing that additional advancements will be needed to continue to improve efficiencies and accommodate consumers."

A Reinforced Commitment: Insurance Regulatory Modernization Action Plan contains a declaration of principles and addresses issues key to insurance regulators, the industry and consumers. It also contains specific goals toward achieving greater efficiencies or reforms in each category. These categories include consumer protection, market regulation, property/casualty rate regulation, insurance policy form approvals, producer licensing, company licensing, financial condition examinations and approval of mergers and acquisitions. Along with each goal, the plan includes targeted time frames for implementation by the states.

Key components of the plan's consumer protection improvements include providing enhanced information resources for consumers, reviewing the adequacy of consumer remedies and continuing to develop and improve model laws. Market regulation reforms will be built around three primary areas: market analysis, uniformity and interstate collaboration.

Other key components of the plan cover the continued improvement of the timeliness and quality of reviews given to insurers' filings of insurance products and their corresponding advertising and rating systems, known as "speed-to-market" initiatives; producer licensing requirements; insurance company licensing; and solvency and receivership regulation.

"We continue to believe that effective and efficient insurance market regulation must be tailored to individual state needs in order to best protect consumers," said Pickens. "The NAIC is putting forth this concrete plan of action in order to ensure the continued improvement of marketplace efficiencies so we can all be better prepared to serve the insurance public for years to come."