Bismarck, N.D. – A coalition of consumer representatives have asked the National Association of Insurance Commissioners (NAIC) to revisit the recently adopted changes to the viatical settlement model law. In a letter, the group raised the specter of conflict of interest, and urged NAIC to strengthen its policy regarding it.
The letter said the actions of former North Dakota Commissioner Jim Poolman, who served as Chair of the committee in charge of the updates to the viatical settlement model, raised questions about the integrity of the process. The letter cited news reports that indicated that individuals with ownership interest in companies that would be impacted financially as a result of changes to the model made significant campaign contributions to Poolman.
“The recent news accounts not only tarnish Commissioner Poolman‘s record, but also may discredit the revised viatical settlement model because of his role in leading its development,” the letter states. “By revisiting the issues in the model through an open public process, the NAIC would help ensure that the substance of the model is not tainted.”
The letter also decried the “revolving door” between the public and private sectors, noting that Poolman soon accepted a lucrative consulting agreement with entities he was regulating prior to his resignation. “Unfortunately, the movement of commissioners who hold senior positions at the NAIC into jobs in or on behalf of the industry they regulate is the norm and not the exception,” the letter says.
Source: North Dakota Center for The Public Good
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