NAIC – Kevin M. McCarty, Commissioner Florida Office of Insurance Regulation, On Behalf of the National Association of Insurance
The fundamental tenet of our U.S. system is to protect policyholders by ensuring the solvency of the insurer and its ability to pay insurance claims. Written Testimony – (p2) – 6p
Examining The Unique Aspects Of The Insurance Industry, The Development And Implications Of Domestic And International Capital Standards, And Evaluate The Current State Of Insurance Regulation In The United States And Abroad
Senate – Committee on Banking, Housing, and Urban Affairs
Richard Shelby (R-AL) – Chair
As a liability-driven business, insurance often has long-term cash flow patterns compared to shorter-term activities at banks.
Consequently, current law fails to adequately account for the business model and risk profile of insurance companies, and that should concern us all.
Response To Written Questions of Senator Shelby from Richard Bouhan (Executive Director, National Association of Professional Surplus Lines Offices)
(p355) – Q.1. Will you please explain why you believe Federal legislation is needed to streamline the regulation of surplus lines insurance?
Q.2. Why should we not leave it to the NAIC to accomplish this task?
A.2. The simple answer is that the NAIC cannot solve the problem.
It neither has the history nor is it, as a trade association representing state insurance regulators, structured to do so.
Moreover, the NAIC has no regulatory or enforcement authority that would allow it to accomplish this task.