Regulators Debate Model Laws

Insurance regulators took action on a proposal to adopt standards on insurance receivership and financial reporting for accreditation, despite some states’ concerns at the recent National Association of Insurance Commissioners summer meeting in San Francisco.

On Saturday, members of the NAIC Financial Regulation Standards and Accreditation Committe voted to expose the Insurance Receivership Model Act (IRMA) to a comment period of one year. If passed, the models could require states to adopt the standards if they want to remain accredited.

Several members of the audience testified at the meeting, criticizing the models because accreditation deals with solvency issues, but IRMA appears to address insolvency issues.

Despite the discussion, the majority of regulators on the committee decided to proceed to the comment period. The committee also voted to move the Annual Financial Reporting Regulation Model toward becoming an accreditation standard.