CDS '07 – Pittsburgh, Pennsylvania
Bridges to Tomorrow: The Next 20 Years

The 2007 CDS opened with the traditional Commissioners roundtable featuring Commissioner Sandy Praeger (KS) the current NAIC President-Elect, Acting Commissioner Joel Ario (PA), Director L. Tim Wagner (NE), and Director Doug Ommen (MO).

Praeger

Ario

Wagner

Ommen

On Tuesday morning, the CDS started with a fast-paced session by Gary Tietjen on the Pursuit of Passion. Mr. Tietjen provided a motivational session inspiring attendees to embrace new ideas, to focus on success - and encouraging individuals to come away a better person by unlocking ones inner passion.

In addition to the general sessions, the CDS offered a series of informative sessions grouped into one of seven tracks. The CDS again closed with a round of covering broad topics that cross multiple areas of insurance regulation. Click on the links below to learn more about the sessions presented at the 2007 CDS.

• Consumer Services Section
• Enforcement & Compliance Section
• Financial Section
• Life & Health Section
• Market Regulation Section
• Property & Casualty Section
• Regulatory Compliance
• Joint Sessions

IRES also honored several members during the CDS, specifically:

• IRES members who over the last year had met the rigorous requirements for its two professional designations, AIE and CIE, were recognized as the 2007 CDS.

• The Al Greer Award was awarded to Bruce Ramge of Nebraska Insurance Department. Mr. Ramge began his insurance career in 1984 as a market conduct examiner, and later was promoted to chief examiner. When departments started reorganizing to handle an overall market regulation program, Mr. Ramge headed up one of the first programs nationally. He has worked on various NAIC workgroups including the one that developed the market conduct examiners handbook. Mr. Ramge is credited with writing the Continuum procedures for Market Analysis, served as the first chairperson of the NAIC Market Analysis Working Group where he created the procedures for regulators to use when recommending collaborative actions, and continues to be active in MAWG. Mr. Ramge's input into just about every phase of market regulation has been invaluable, as a contributor, a mentor, a leader, a teacher and a role model.

• The Schrader Nelson Award for the best article in the Society's newsletter, The Regulator, was awarded to J. Robert Hunter for his article "How Regulators Can Return P/C Profits to Reasonable Levels" which appeared in the March 2007 issue.

• The President's Award was presented to Stephen Martuscello, CIE for his outstanding service to IRES.

• The crystal gavel was presented to outgoing president Douglas A. Freeman by the incoming president, Polly Chan.

Consumer Services Section

• Innovative Life and Annuity Products – The pros and cons of owning these products, the products that are available and what consumers should know to determine whether the product is suitable for their situation was discussed by regulator and industry representatives.

• Life Settlements, Viaticals and Investor-Initiated Insurance - What Are They? – The pros and cons, insurable interest, who regulates them, differences between the products, whether disclosure is enough was covered in this session.

• Federal/State Disaster Funds: Will they Protect Company Solvency? – This session took a look at what these funds are, how they work, whether they work, who pays for them and who regulates them.

• Consumer Services Roundtable – A wide range of topics all affecting insurance consumers were discussed during this roundtable session.

Enforcement & Compliance Section

• To Issue or Not to Issue: Producer Licensing 101 – Presenters from different states shared their handling of statutory requirements for producer compliance, such as licensing, application representation, USC 1033 rulings, appointment, termination and continuing education.

• Who's Been in your Wallet? Insurance Aspect of Identity Theft – During this session, the presenters discussed the woes of identity theft and how they affect the insurance industry, as well as consumers and policyholders and some possible remedies.

• Check it Out: Health Benefit Plan Checklist and Members' Bill of Rights – This session discussed a laundry list of mandatory provisions that a health benefit plan contract should contain. In addition, the discussion included information on how different states are enforcing them along with the rights of subscribing members.

• Enforcement & Compliance Roundtable – This roundtable discussion included a panel of experts that presented an array of compliance and enforcement issues and fielded questions from the audience.

Financial Section

• Hocus Pocus Risk Focused – The new risk-focused approach to examining insurance companies, for market conduct examinations was discussed during this session.

• Has Globalization Gone too Far? – This session took a look at the new NAIC Reinsurance Evaluation Office proposal, whose purpose is to put collateral where there is perceived increased exposure for slow paying re-insurers by using financial ratings and not licensing to determine collateral requirements.

• Just How Good are an Insurance Company's Investments? – This presentation by a representative of the NAIC's SVO provided information on understanding and evaluating an insurers' investment portfolio, including information about the risks associated with high-yield investments.

• Reinsurance, Past, Present and Future – In the wake of all of the publicity reinsurance received as a result of New York's recent investigations, this session took a look (then and now) at the state of the reinsurance marketplace.

Life & Health Section

• Discount Health Plans - Regulatory Framework (or Lack Thereof!) – Discount medical cards have become prevalent across the country as an alternative or a supplement to health insurance. This was a presentation on the recent proliferation of discount medical plan cards and the many challenges faced by regulators. It also looked at how these cards affect consumers and industry, as well as what the regulators have done to try and address this recent trend.

• Federal Impediments to State Health Reform – This session was a presentation of the recent recommendations of the NAIC's Federal Relief Subgroup Task Force, and included a roundtable discussion of the challenges and impediments in federal law that limit states' ability to innovate in health care.

• Cost-Saving Trends in Healthcare: Consumer-Driven Products and Wellness Programs – This session explored two major trends in employee benefit health plans: Consumer-driven healthcare products and wellness programs. It also looked at what these trends mean to the regulator, the impact on the industry and whether employers and employees really do benefit when consumers have more control over their health care choices.

• Life & Health Roundtable – This open discussion for regulators and industry provided attendees the opportunity to discuss any and all topics related to Life & Health insurance.

Market Regulation Section

• A Ride Through the Market Conduct Exam Experience – A panel of industry members and regulators discussed the before, during and after preparation each side undertakes for the market conduct exam.

• Everything You Wanted to Know About Automation Tools But Were Afraid to Ask! – A panel of regulators and NAIC staff discussed and illustrated the tools being used by regulators to analyze trends and patterns in the insurance marketplace, and how the tools interact.

• Senior Issues and the Marketplace: Fraud and Abuse – A panel of regulators and industry discussed issues in the senior marketplace, including fraud, abuses and scams.

• The Continuum of Regulatory Responses - What Does It Mean? – This session discussed the various responses of the continuum, how regulators use them, and what industry should expect.

Property & Casualty Section

• Setting Rates for the Future – This session looked at setting rates for the future including how past catastrophes like Katrina, as well as potential terrorist threats, are affecting new and future rates and forms.

• What in the World are Those MCAS Report Cards Telling Us? – This open discussion covered how the Market Conduct Annual Statement Report Cards were made and what they tell the reader.

• Modern Day Technology: What Information is Available for the Industry? – Information about effective data mining for underwriting and claims handling applications was provided during this session.

• The Latest on Workers Compensation Insurance – Experts in the workers compensation arena provide information on the latest trends and issues in workers compensation insurance.

Regulatory Compliance Section

• A Good Field Coordinator - Don't Go Into a Market Conduct Exam Without One! – Focusing on the critical role of the field coordinator and the important duties and steps to ensure a successful market conduct exam, this session covered the type of person who should be field coordinator and the key duties he should perform. The session it also included a discussion on the important steps that should be covered during the exam process to promote efficiency and positive outcomes.

• OFAC: Compliance Requirements for EVERYONE – This session help clear the some of the confusion people still seem to have with the Office of Foreign Assets Control (OFAC) requirements by providing the opportunity to learn what the requirements are and what tools companies are using, including software programs, to help be compliant.

• Ins and Outs of the Market Conduct Annual Statement – Information on how insurers are handling the market conduct annual statements, including the challenges that are faced and some proactive steps to meet those challenges was provided during this session.

• Compliance Open Forum – This interactive forum provided an opportunity for regulators and industry representatives to present questions to esteemed compliance colleagues for their input, to participate in lively discussions about timely and relevant compliance issues, and/or to share an experience with or inquiry about how others handled a particular issue.

Joint Sessions

• Title Insurance - Is it Needed, and at What Cost? – This session provided background information on various methods of protecting ones title and on whether title insurance is still relevant in today's world, and if it's overpriced.

• Bill Bailey and his Virtual Panel – Taking advantage of technology, this session provided a virtual panel of Insurance Commissioners that discussed and answered questions regarding key issues of today's insurance marketplace, such as McCarran repeal, whether storms and catastrophes are warning signals of destructive climate change and long-term global warming, whether Congress should impose restrictions on third-party purchase of life insurance policies and universal health care.

• Back by Popular Demand - NAIC Update Revisited – This session provided an update on the NAIC initiatives with the federal government over the past year and shared updates of the Sarbanes-Oxley Act, National Insurance Act, and other important legislation.

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