Association News

NAIC Updates Its State Insurance Regulatory Response to COVID-19

Farmer: Staying true to our core values

A new NAIC report on COVID looks to prioritize industry initiatives going forward. Access the report here.

Washington (October 29, 2020) – The National Association of Insurance Commissioners (NAIC) today releases its second update regarding the current pandemic and the insurance industry: A Report of the NAIC on the State Insurance Regulatory Response to COVID-19 Update 2. The latest report outlines the actions taken by members and regulators from June 1, 2020 to September 30, 2020 to help curtail the impact of the pandemic.

“The state-based regulatory system quickly pivoted to not only address a global pandemic, but issues like Race and Insurance and Climate Risk and Resiliency, among others,” said NAIC President and South Carolina Director of Insurance, Ray Farmer. “We’ve been able to address these priorities by staying true to our core values. This report summarizes the efforts and results on behalf of the NAIC and the nation’s insurance regulators.”
Summary of key actions from June 1, 2020 — Sept. 30, 2020:

Excerpts From The Report Of Insurance Regulatory Response to COVID 19

Consumer Protection

  • Continued to update the NAIC Coronavirus Resource Center with
    information from state regulators, the NAIC, and reputable third
    parties.
  • Continued to distribute educational resources about the impact of
    the pandemic on insurance lines.
  • Continued to warn about potential fraud risks.
  • Worked with regulators and consumers to mitigate the impact of COVID-19 as states dealt with a myriad of natural catastrophes.

Maintain Sound Markets

  • Coordinated data collection on business interruption insurance.
  • Adjusted regulations to reflect challenges caused by COVID-19.
  • Coordinated with federal counterparts and other regulators across
    the world on the global response to pandemic impacts on multinational insurance groups.
  • Continued to adjust NAIC software capabilities to streamline the
    process and enable remote business operations.

Deliver Excellent Service

  • Shifted communications to virtual platforms and maintained regular
    outreach to members and the stakeholder community.
  • Targeted training and education to regulators.
  • Provided assistance to states grappling with their response to natural
    catastrophes.
  • Ensured resiliency and ongoing operation of core NAIC services

National Insurance Producer Registry

The state-based regulatory system quickly pivoted to not only address a global pandemic, but issues like Race and Insurance and Climate Risk and Resiliency, among others...

The NAIC and the National Insurance Producer Registry (NIPR) provided the technical and communications support to 49 states to implement over 140 orders and bulletins related to producer licensing. Thirty-three states issued bulletins related to license renewals and 30 states issued bulletins related to temporary licensing, which provided licensees more time to complete state mandated pre-licensing or continuing education requirements.

The NAIC’s State Based Systems (SBS) continued to support its states throughout their response to COVID-19, by extending the expiration dates of more than 105,000 licensees in 11 states. Insurance producers are in direct contact every day with Americans, helping them make critical decisions on financial and personal welfare. This need has been heightened during this time of economic uncertainty. Our obligation is to ensure that insurance companies can meet consumer demands for insurance products with producers who have the knowledge and personal integrity to fulfill those responsibilities.

The organization’s initial report: A Report of the NAIC on the State of Insurance Regulatory Response to COVID-19 was released earlier this year and includes members’ actions from January 1, 2020 to May 31, 2020. Additional reports will be issued as the COVID-19 pandemic continues to evolve.

 

 

 

About the NAIC
As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. For more information, visit www.naic.org.

 

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