2005 Vermont Code - § 3551. — Legislative oversight of the National Association of Insurance Commissioners

§ 3551. Legislative oversight of the National Association of Insurance Commissioners

(a) Annually on or before October 1, the National Association of Insurance Commissioners shall file a report of its activities with the commissioner, and with the house commerce committee and the senate finance committee. The report shall include:

(1) a summary of the activities of the National Association of Insurance Commissioners during the preceding year;

(2) a fiscal report, in accordance with generally accepted accounting principles, stating each category of personal, operating, and capital expenditures, and each category of revenue from all sources of the National Association of Insurance Commissioners during the association's preceding fiscal year, and anticipated expenses and revenues for the current and succeeding fiscal year, on a form approved by the joint fiscal committee. The fiscal report shall include for each such fiscal year, statements of expenditures by major program, an audit opinion of the association's fiscal report, the salaries and other compensation of the association's officers, the salaries and other compensation of the professional and managerial employees receiving the highest five salaries, the salary range and other compensation of all other professional and managerial employees, and such other information as may be requested on or before August 1 of each year by the general assembly;

(3) a list of each law or regulation, identified by name and version, required or proposed to be required by the National Association of Insurance Commissioners to be enacted or adopted in order for a state to receive, or continue with, its status as a state accredited by the National Association of Insurance Commissioners, together with a detailed rationale for why each such requirement is in the public interest, and why alternative means less restrictive of state sovereignty and innovation could not accomplish the public purpose of each such requirement;

(4) a description of the policies and procedures in effect with the National Association of Insurance Commissioners that are designed to ensure that a state's accreditation status is determined solely based on the merits of a state's regulatory effectiveness, a statement on whether the association has complied with such policies and procedures, and a detailed explanation of any noncompliance with such policies and procedures;

(5) a description of the policies and procedures designed to ensure that the National Association of Insurance Commissioners conducts its deliberations and makes its decisions in meetings that are open to the public, and in a manner that provides fair notice and a fair opportunity for all affected persons to be heard, a statement on whether the association has complied with such policies and procedures, and a detailed explanation of any noncompliance with such policies and procedures; and

(6) any other information requested on or before August 1 of each year by the house commerce committee or the senate finance committee.

(b) Upon receiving the report of the National Association of Insurance Commissioners, the senate finance committee or the house commerce committee may request that the National Conference of Insurance Legislators review the report and make recommendations to the committees. If such request is made and agreed to, the National Conference of Insurance Legislators shall report to the house commerce committee and the senate finance committee on or before January 1 following such request.

(c) On or before March 15 of each year, the house commerce committee and the senate finance committee shall review the report of the National Association of Insurance Commissioners filed under subsection (a) of this section, together with the review and recommendations of the National Conference of Insurance Legislators submitted under subsection (b) of this section. The committees may provide an opportunity for consumers, the commissioner of banking, insurance, securities, and health care administration, insurance companies, and any other interested party to be heard on matters relating to the National Association of Insurance Commissioners, and any other matter relating to the efficient and effective regulation of insurance companies. The committees may explore the feasibility of conducting such legislative oversight hearings in concert with the legislative committees of other states with jurisdiction over insurance matters. The committees may transmit the record of their oversight review to the National Conference of Insurance Legislators and the National Association of Insurance Commissioners on or before July 1 of each year.

(d) The joint fiscal committee may approve the payment of annual expenses, not to exceed $45,000.00, needed to conduct legislative oversight under this section, from the insurance regulatory and supervision fund. The joint fiscal committee may allocate such funds for expenses of the house commerce committee, the senate finance committee, and on joint recommendation of the chairs of the house commerce and senate finance committees, the National Conference of Insurance Legislators, for legislative oversight purposes authorized by this section. (Added 1995, No. 83 (Adj. Sess.), § 2; amended 1995, No. 180 (Adj. Sess.), § 38(a).)