Kansas City, Mo. - The National Association of Insurance Commissioners (NAIC) has adopted a model law development framework as part of an effort to respond to state, federal and international regulation.
The framework calls for the parent committee and executive committee to approve the development of a model law before drafting begins, the Kansas City, Mo.-based NAIC says. To be approved, the Model Law must involve a national standard that requires uniformity among all states and must receive the commitment of significant regulator and association resources to educate, communicate and support its state implementation.
The framework will bring discipline to every phase of the model law process, including identification, development, adoption and state implementation, says Walter Bell, NAIC president and Alabama insurance commissioner. It also will provide greater relevance to the Model Law. At the same time, it expands the membership’s ability to evaluate options and alternatives in the states’ approaches to addressing local issues back home. NAIC policy in the form of guidelines will continue to demonstrate the value of the NAIC’s collaborative committee process.
“We believe this new process will reshape and refocus the use of Model Laws for priorities that require national, uniform legislation and regulation,” says Bell. “These model laws will be more responsive and relevant to issues affecting all states but will carry the weight of the need for uniform enactment.”
If the issue or matter does not meet model law criteria, it will be developed as a guideline, and will range in scope from laws, regulations, best practices, bulletins and other guiding principles that states may use though they do not necessarily require uniform adoption.
“This new framework will allow the NAIC to address national standards in a more efficient, coordinated and committed manner,” Bell says. “Guidelines will likely expand the membership’s tool box and sources of insurance regulatory best practice.”
NAIC staff will work with the association's committees, task forces and working groups to set up the new procedures.
Source: The National Association of Insurance Commissioners
