NAMIC will continue to advocate against the measure
In a plenary session held Sunday at its summer national meeting, the National Association of Insurance Commissioners (NAIC) voted to approve a proposal to apply elements of the federal Sarbanes-Oxley Act (SOX) to non-public insurance companies.
The new requirements are included in a set of changes to the Model Audit Rule that each state could adopt if lawmakers agree the provisions should be enacted. After two years of contentious debate, the proposal approved Sunday is significantly less burdensome and costly than earlier versions.
“We’re proud of our advocacy,” said Neil Alldredge, Senior Director of State Advocacy for the National Association of Mutual Insurance Companies (NAMIC). “Our careful scrutiny of the NAIC’s original SOX proposal exposed the flawed reasoning of its proponents and revealed the harm it could do. When the NAIC dismissed our suggestion that the proposal be subjected to a cost-benefit analysis, NAMIC commissioned a study that proved conclusively that the proposal would impose substantial costs on insurers, while providing no discernable benefit to policyholders. The proposal’s supporters responded in the only way they could: by narrowing the measure’s scope and eliminating its most onerous provisions.
See full Press Release.
Posts
