NAIC Native American Panel Taking First Steps Toward Outreach on State-Based Regulation to Nations
April 11, 2014 by Thomas Harman, associate editor, BestWeek: Tom.Harman@ambest.com
OKLAHOMA CITY – A National Association of Insurance Commissioners panel is moving to identify tribal insurance participants as part of its initial work to provide information to more than 500 sovereign nations about state-based insurance regulation.
The NAIC’s American Indian and Alaska Native Liaison Committee was formed in August 2013 and has met twice (Best’s News Service Aug. 27, 2013). Panel chairman John Doak, Oklahoma’s insurance commissioner, told Best’s News Service the panel is necessary because tribal nations have moved into various business sectors — including banking in recent years — and there is an increasing interest in the insurance sector. The move toward tribes providing insurance and services “seems to be the next logical step.” Some tribes already have had companies enter their market to provide insurance.
To date, the committee’s activities have focused on identifying opportunities for Native American-owned insurance companies, specifically a survey of state regulators to capture data on Native American tribes. The information will be used to allow the panel to start educational outreach on insurance regulation to the correct entities. Doak said the survey might be completed and ready for approval before the committee meets in Louisville, Ky., in August.
Doak said the committee wants to educate tribal leaders about state-based regulation, guaranty funds that are available and to provide educational outreach necessary to spread information. The committee will look to be heard at various forums, including the Native American Congress. “We’re in the infancy stages,” he said.
The committee is in the initial stages of forming a dialogue with the American Indian and Alaskan Native communities, NAIC Chief Executive Officer Sen. Ben Nelson said in a statement. “Our members our now beginning to confirm contacts for state and tribal liaisons,” he said. “Our long-term goal is to provide an opportunity for American Indian and Alaska Native groups to bring insurance consumer protection issues to the attention of NAIC members and work toward best practices for dealing with insurance issues unique to sovereign tribal nations.”
States treat the operations of insurance companies in tribal areas differently, Doak said. Oklahoma passed legislation in 2013 that allowed tribal entities to apply for the authority to buy or form insurance companies that would be subject to state-based regulation. The NAIC panel, he said, will look at similar laws in other states and at some point will probably invite tribal officials to an NAIC meeting to introduce them to the panel and the process.
Federal officials have their attention on tribes as well. The Federal Insurance Office’s insurance industry modernization report issued last December indicated the FIO would “consult with tribal leaders to identify alternatives to improve the accessibility and affordability of insurance on sovereign Native American and Tribal lands.” Doak said the NAIC has recognized the need to address the issue and took initiative well before the FIO report was released.
Doak has been outspoken in his opposition of federal involvement in the insurance industry. He said the FIO report took a long time to complete and is “just a problematic symptom of a dysfunctional federal government looking at issues that, in this case, the NAIC has already addressed, already identified,” he said. “It’s common sense. I don’t think we needed the FIO report to highlight this for us.”
Doak, who is running for a final two-year term as commissioner, said the committee chairs will continue to evolve and that some commissioners believe it should be treated within the NAIC on the same level as communications with international governments.
(By Thomas Harman, associate editor, BestWeek: Tom.Harman@ambest.com)
BN-NJ-4-10-2014 1519 ET #
