AIA secures its top priority

"The justification for prompt NAIC action is that states have been adopting Model Law Holding Company Acts that are somewhat different than the model, which presents problems to our members," added Lisa Brown, AIA senior counsel & director of Compliance Resources. "Without uniformity, it presents the potential for conflicts between the states. We want a uniform process developed."

This is not product specific, nor line specific," Brown said. "It just deals with how you are regulated; it needs to be uniform."

She acknowledged that a primary AIA concern is for a uniform U.S. approach as international regulatory discussions "move along rapidly." Brown said the talks are aimed "at speaking a common language in overseeing insurance companies, and it was felt that a uniform stance from U.S. regulators was important."

Another issue is modernization of rate and form regulation across state lines. She said this would also likely impact foreign insurers looking at U.S. markets "who might be discouraged because of the onerous regulatory regime."

On the other hand, she said, "inaction would at the same time lessen the willingness of foreign governments and insurers to let U.S. companies compete. It could be a trickle-down."

See also:

• Governors express concern about FIO report
• State insurance concerns bubble up to federal level
• Leonardi assumes NAIC international regulatory mantle