NAII CALLS FOR SWEEPING STATE REGULATORY MODERNIZATION IN 2004.

Calling state insurance regulation at "a critical crossroads," the National Association of Independent Insurers has made achieving modernization of state insurance regulations a top priority for 2004.

"Some modest improvements were made in the states in 2003, particularly regarding the movement away from prior approval laws," but "more sweeping regulatory modernization changes need to be made quickly in 2004," said Robert Zeman, NAII vice president of state government relations.

He said "good progress" had been made last year in New Hampshire, Louisiana and New Jersey, but warned Congress would "be keeping a watchful eye on developments," particularly after last year's congressional hearings and General Accounting Office report recommending "much more modernization is needed and needed quickly."

He said the reauthorization of the Fair Credit Reporting Act had generated an increased congressional interest in the regulation and oversight of insurance activities.

He said NAII would be developing a state-by-state list of goals, objectives and targets, and hoped the National Association of Insurance Commissioners would be ready by its retreat in February to adopt a list of specific goals for action in certain states.

He praised the new 2004 NAIC President, South Carolina Insurance Director Ernst Csiszar, as a strong supporter of regulatory modernization, including personal lines. South Carolina's "sweeping modernization changes in its auto system have led some companies to re-enter the market and others to reduce rates," he said.