The executive committee of the National Association of Insurance Commissioners (NAIC) has established new guidelines that require standing NAIC committees to perform regular review of model laws. Model laws are recommendations for legislation that the NAIC membership votes on.
"The NAIC has more than 260 model laws and regulations and many are more than 15 years old," explains NAIC president and Arkansas Insurance Commissioner, Mike Pickens. "Some models are still relevant and up-to-date, but because the marketplace has changed, others may be out-of-date."
As part of the review process, the parent committees that passed the model law will consider factors including the original purpose of the model's development, the number of states that have adopted the model and any new or ongoing purpose for retaining the model. These factors will facilitate committee recommendations that the model be deleted from the official list of NAIC model laws, reviewed for amendments or retained in its current form. Currently, according to Pickens, the NAIC has health, P&C and life and annuity parent groups.