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2014-04-12 09:14:34
Legal & Historical Cases
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  1. Paul v. Virginia, United States v. South-Eastern UW Association, McCarran-Ferguson Act:
    • 1868: insurance is not commerce
    • 1944: insurance is commerce and thus could be federally regulated
    • led to quick passage of McCarran-Ferguson Act
  2. NAIC (National Association of Insurance Commissioners)
    • first met in 1871, to answer a specific issue: "the increase in the number of state departments, each established under different laws and adopting different forms, rules, and regulations, has naturally tended rapidly to increase the labours and consequent expenses of insurance companies".
    • agreed to recommend that state legislatures adopt common annual statement forms
    • determined they should agree on uniform terminology
    • consider developing common reserving standards for life, fire and marine business
  3. 1936 NAIC new provisions
    • recognizing the Committee on Blanks (annual report) and requiring it to meet at least once a year to consider amendments
    • requiring the securities valuation committee to report annually
    • making formal provisions for multi-state examinations of insurers
    • authorizing the NAIC secretary-treasurer to seek voluntary contributions from members
  4. Federal measures encroaching provincial authority:
    • HMO Act to foster creation of health maintenance organizations
    • Employee Retirement Income Security Act establishing standards for employee-benefit plans, including health plans
    • Health Insurance Portability and Accountability Act of 1996 made health coverage portable for workers at small employers
    • Medicare minimum loss ratios
    • Omnibus Budget Reconciliation Act standardizing Medicare supplement coverage
  5. Gramm-Leach-Bliley and its effects
    • opened doors to new kinds of cross-ownership, affiliation and distribution
    • law threatened creation of the National Association of Registered Agents and Brokers, unless the states met standards of uniformity and reciprocity in licensing producers
    • threat proved a powerful tool for compliance