The Regulatory Modernization (EX) Task Force (the “Task Force”), chaired by Commissioner Kim Holland (Oklahoma) met on Friday, March 26, 2010 during the NAIC Spring National Meeting. The Task Force is new for 2010 and has been established (according to the draft charges presented to the Task Force) “to develop a plan for building member consensus and necessary constituency support for national uniformity in areas that will enhance the existing strengths of state insurance regulation, and that are consistent with NAIC guiding principles on regulatory modernization”.

The Task Force heard from Maryland State Senator Delores Kelley, New Mexico State Senator Carroll Leavell (vice president of the National Conference of Insurance Legislators (“NCOIL”)), Alabama State Representative Greg Wren and Rhode Island State Representative Brian Patrick Kennedy, giving legislative perspectives on regulatory modernization, and also from Dennis Johnson, President and CEO of United Heritage, and SueAnn Schultz, Senior VP and General Counsel of IMA Financial Group who had been asked to give industry perspectives.

Both of the industry representatives spoke frankly about their desire for more uniform regulatory standards. Mr. Johnson encouraged States to adopt uniform requirements and procedures for financial statement filings and encouraged the adoption by all States of the Interstate Compact in relation to new product review. Ms. Schultz encouraged reform of producer licensing to improve reciprocity and eliminate multiple layers of licensing requirements. She also suggested that all States would benefit from a clear tax regime in relation to surplus lines business.

If you have any questions about other developments at the NAIC Spring National Meeting, please contact EAPD’s Alan LevinNick Pearson or Chris Sage who attended the National Meeting.