NAIC Wants Reports On Regulator Finances
By Jim Connolly
National Underwriter News
March 18, 2005
Salt Lake City, Utah -- Some state insurance commissioners may have to beef up disclosure of potential conflicts of interest.
Members here for the spring meeting of the National Association of Insurance Commissioners, Kansas City, Mo., voted unanimously to adopt a conflict of interest disclosure policy for the commissioners who serve on the NAIC's executive committee.
The new policy will require NAIC executive committee members to deliver an annual disclosure statement.
The new policy defines a conflict of interest as being "any activity, transaction, relationship, service engaged in or consideration received by the Executive Committee member, the member's immediate family or someone in the member's immediate household which may cause an objective person reasonable concern that the member could not or may not be able to perform his responsibilities and duties to the NAIC in an impartial manner," according to the policy text.
The policy means that executive committee members will have to disclose any known activity that could be perceived as a conflict of interest and any activity relating to a family member including a spouse, a parent, a sibling or a child that could be construed as a conflict of interest, officials say.
The new disclosure rules apply to any benefit with a value over $50.
The disclosures will not be public documents because the NAIC is a 501(c)3 organization, according to NAIC officials.
In addition, commissioners will not have to report proceeds from efforts to raise funds for reelection campaigns because those efforts are not related to NAIC activities, according to Andrew Beal, the NAIC's general counsel.
Many insurance commissioners already sign state conflict of interest agreements that prohibit those commissioners from accepting gifts of any substance, officials say.