At the time, the NAIC declared that the Web site was a new tool that allowed "consumers to locate basic information about a specific insurance company, including amount of premiums written, assets, liabilities and licensing information."

Additionally, the Web site would permit consumers to file complaints and to review statistical information on previously resolved complaints against an insurer, the NAIC said.

In launching the site, the NAIC ignored NAMIC's request that the launch be delayed until certain issues could be addressed.

"The data that is currently available is subject to different formats and standards through many state insurance departments," noted Peter Bisbecos, NAMIC's legislative and regulatory counsel.

"Absent a reliable way to translate disparate bits of information into one cohesive database, the likelihood of misunderstandings and damage to business reputations is substantial," he explained.

Mr. Bisbecos further observed that the public would likely attribute "a high degree of credibility" to a national consumer complaint database sponsored by the NAIC and intended as a collection of information from the state departments of insurance.

For this reason, he continued, it is important to employ and maintain "exacting standards of clarity and accuracy."

"If the database is not impeccably accurate; consumers relying on it may errantly choose not to purchase insurance from a quality company, judges and juries may be given inaccurate information about a company's behavior and, perversely, companies who behave badly may escape exposure," Mr. Bisbecos warned.