March 1, 2001
Contact: Lucas Hamilton
Morrison heads national consumer protection group
Montana State Auditor John Morrison has been named co-chairman of the National Association of Insurance Commissioners' Consumer Protection Working Group.
Historically, the insurance industry has been regulated by individual states with no national continuity or uniformity. In 1999, Congress passed the Gramm-Leach-Bliley Financial Services Modernization Act, which among other things, created national uniform requirements for insurance regulation and charged the NAIC with the responsibility of implementing them.
The working group will ensure that consumers are protected as the NAIC fulfills its duty to create a national insurance regulatory system.
"States remain the primary regulators of the insurance industry, but our group will work to ensure that the new set of national uniform rules will protect consumers in the rapidly changing world of technology and globalization," Morrison said.
In order to protect and serve more sophisticated, but also more exposed insurance consumers of the future, insurance regulators are committed to modernizing insurance regulation to meet the realities of an increasingly dynamic and internationally competitive financial services marketplace. This will include working with all parties to reduce the incidence of fraud, thereby providing a safer environment for consumers and lower costs.
Morrison will lead the 27-member group with Kathleen Sebelius, insurance commissioner of Kansas and president of the NAIC.
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