NAIC May Limit Consumer Rep Speaking Fees

The NAIC could use the notice to determine whether a conflict of interest exists, proposal advocates say.

The current version of the proposal calls for the consumer board of trustees to keep financial information submitted confidential.

Consumer reps and Sean Dilweg, Wisconsin insurance commissioner and chair of the meeting, seemed to agree at the consumer board meeting that consumer reps could receive an honorarium to speak at a trade group conference but should not receive a fee to testify for the insurance industry on a specific industry position.

Meeting participants talked about the difference between a consumer rep getting a token honorarium to speak at a hemophilia association meeting and getting a $50,000 fee to take an industry position.

Constance Chamberlin, a funded rep and president of Housing Opportunities Made Equal, Richmond, Va., said there is no conceivable way to list all possible conflicts of interest.

Birny Birnbaum, a funded rep who is executive director of the Center for Economic Justice, Austin, Texas, said there should at least be some examples of what types of arrangements do and do not create potential conflicts of interest.