ICAE – Washington, DC – Fall 1999 Exchange – Q & A Panel Discussion
Q &A following panel discussion
RE: Please comment on the impact of S900/HR10 Financial Modernization legislation?
Reider: NAIC supports the legislation, and believes it’s good for competition. There are no federal regulators of Insurance. “Protecting an investor is different than protecting a policyholder.”
RE: Should rate information be included at insurers’ Web sites?
Sebelius: Yes
Montemayor: Yes
Covington: Need to put rates in proper context; what type of product and service are consumers getting? There can be differences in products where simple rate comparisons don’t serve the consumer well.
RE: What is the fundamental responsibility of the DOI?
Sebelius: To promote best practices, but don’t dictate what states do. Also focus on consumer outreach.
Reider: To establish a coalition against fraud. Fraud is a serious problem that costs the consumer; insurers and consumers can both benefit from working together.
Montemayor: Sharing information is valuable as there have been dramatic changes in recent years. Sees best practices using more of a risk-based approach.
There was also discussion about mechanisms to prevent “bad actors” or dishonest agents from moving from company-to-company and state to state. A national database or sharing of information between state and federal agencies could help.
RE: What are your thoughts on the State Farm OEM/aftermarket parts class-action suit decision?
Montemayor: Limiting repairs to OEM, copyrighted parts would eliminate competition, increase the cost of repairs and raise premiums.
Sebelius: Vehicles under warranty should use warranty parts [OEM] parts; older vehicles have more flexibility because OEM parts may not be easily accessible or affordable.
