A new study from the
While citing improvements in reciprocity of producer licensing among states, the GAO found reciprocity in areas such as consumer protection wanting. Moreover, in the area of market conduct examinations the report found only a good deal of differences between states. For example, although the
However, while the report did laud NAIC’s creation of a working group to coordinate enforcement actions, it notes the continuing discrepancies between states cost the industry dearly. “While better communication and coordination appears to have resulted, according to some states in our sample, the effect on uniformity of market conduct regulation is uncertain,” the report reads. “Lack of uniformity and reciprocity may lead to inefficiencies, higher insurance costs, and uneven consumer protection across states.”