Surveys: Regulatory Efficiency Moves May Be Working

The group that developed the second report, the trade association survey report, included the American Council of Life Insurers, Washington; the Blue Cross and Blue Shield Association, Chicago; the Insurance Marketplace Standard Association, Washington; and several property-casualty insurance associations.

The industry survey looked at 192 market conduct exams started in 35 states on or after Jan. 1, 2003.

The survey included 86 targeted exams, 106 comprehensive exams, and 64 exams that involved the use of outside contract examiners.

Although "regulators are striving to adhere to uniformity standards," one-third of the exams deviated from the NAIC uniformity standards, according to the authors of the industry survey report.

The most common deviations from the uniform standards were failures to identify items to be billed, failures to identify billing procedures and failures to provide time and cost estimates, according to the report authors.

Many examiners also failed to provide draft reports within 60 days of the completion of their exams, according to the report authors.

"Our overall sense is that there has been real progress," said Linda Lanam, vice president-annuities at the ACLI.

The ACLI recognizes that market conduct exams and some use of outside contractors are still necessary, Lanam said.

But the ACLI is hoping improved state collaboration will reduce the number of exams and that regulators will find ways to reduce use of outside contracts, Lanam said.