Both consumer and insurer representatives said that there is a need to put a regulatory product out that creates guidelines that can be tested to see what works and doesn't work.

During the course of market conduct sessions, it was suggested by Dave Reddick, a representative with the National Association of Mutual Companies, Indianapolis, that the different pieces of the market conduct puzzle being developed by various NAIC working groups include a "How-to Guide."

The Guide is being developed to offer regulators a source describing effective market conduct tools. A catalogue of regulatory tools has been developed and a second phase of the Guide would offer instruction over how to use these tools.

Linda Lanam, a representative with the American Council of Life Insurers, Washington, said, "it is very important we use 2003 to take a look at what is being done and to make sure that it is working. The more we can do, the more it will give rise to new things."

Birny Birnbaum, executive director of the Center for Economic Justice, Austin, Texas, suggested that rather than presenting status reports, it was important to put a product out.

But Cindy Amman, a Missouri regulator, argued for the systematic approach that is being taken. Many states do not know what tools are available, she said. Consequently, it is important for state regulators to first learn what is available before learning how to use these regulations.

Noting that there will be a large turnover in commissioners next year, Mr. Birnbaum suggested that a one or two page document be written so that "when new commissioners come in, you can say this is what market conduct regulation should look like."

However, Joel Ario, Oregon insurance administrator, noted that it was not that simple to achieve a unified vision because there are different viewpoints among regulators.

Even so, there are signs that regulators are taking steps to work more closely together. A market conduct uniformity working group reported that 42 states said that they are compliant in at least two of four areas of market conduct uniformity including exam scheduling, pre-exam scheduling, exam procedures and exam reports. The goal for 2002 had been 26 states.

Jann Goodpaster, an Oregon regulator, informed interested parties that 100 percent of states are meeting uniformity in at least two areas.

And a market conduct examination tracking system is expected to be up and running on January 1, 2003.

By Jan. 1, 2003, life insurers will also have turned in their market data call reports to regulators. That data will be culled for statistical norms and outliers, and a report presented in March 2003, according to Sue Stead, an Ohio regulator, heading up the market analysis working group. Property-casualty companies are gearing up for the same exercise.

Lenore Marema, a representative with the Alliance of American Insurers, Downers Grove, Ill, said that member companies are concerned about the project's cost and want to be assured that information collected will actually be used. Companies will be keeping track of costs, she said.

Ms. Stead added that when doing that, it is important that uniform criteria be established so that it is an apples to apples comparison.

The market conduct analysis feedback for members of the National Association of Independent Insurers, Des Plaines, Ill., is a "real mixed message," Don Cleasby, an NAII representative told regulators. Although members say they support the project if it creates dialogue and coordination among regulators, Mr. Cleasby said, others are skeptical that the money is being spent for a pilot that is not going to move anywhere and any cost must lead to some result.