NAIC CEO Nelson Says FIO Has Attempted to Speak for State Regulators

Commenting in an article in Best’s News Service, National Association of Insurance Commissioners (NAIC) CEO Ben Nelson said he has been meeting with Federal Insurance Office (FIO) Director Michael McRaith and holding conference calls in an effort to clarify the FIO’s role on the international stage. But he said more communication may be necessary.

“Communication involves more than just meetings and telephone calls,” Nelson said. “It has got to mean that FIO has to tell us their positions in advance, so we don’t learn about them as a surprise or that they have a position but they can’t tell us what it is. That’s not communication.” Questions about the FIO’s role have reached a point where Rep. Randy Neugebauer (R-Texas), who chairs the House Financial Services Subcommittee on Housing and Insurance, has asked McRaith to submit monthly updates about the office’s interaction with the NAIC and on the development of policy positions.

Nelson said McRaith has attempted to speak on behalf of state insurance regulators and has “taken positions that run contrary to the state regulatory mechanism.” Nelson said some of the FIO’s actions and statements have led to confusion among its international counterparts about whether the office is actually a regulator. He said that only representatives of state regulatory bodies should speak on behalf of regulation.

NAIC CEO Nelson: Confusion Persists on FIO’s Role (Best’s News 7/10/13) (subscription)
Nelson to Congress: FIO Does Not Speak for Insurance Regulators (PIA 6/18/13)