The National Association of Insurance Commissioners released a proposed 2006 budget that calls for a nearly 4% increase in spending over the current plan.
The consolidated budget calls for projected revenue of $59.3 million or a less, than 1 percent increase over this year's figure, and spending of $58.3 million for a 3.6% increase over the current spending plan.
Database fees are budgeted at $1.4 million for a 5.4% decrease from the 2005 budget. A portion of the projected '06 decrease of $790,850 is resulting from less-than-anticipated 2004 premium growth and consolidation activity within the industry in 2004.
William Boyd, financial regulation manager for the National Association of Mutual Insurance Companies, Indianapolis, notes that the NAIC has tried to be responsive to the industry's dislike of such fees by reducing them in anticipation of future growth that apparently did not materialize.
"Reconciliation of this problem may demand resolution later," he says.
NAIC President and Pennsylvania Insurance Commissioner Diane Koken says the spending plan supports regulatory modernization efforts.
