Mr. Pickens made the disclosure in the course of reporting to his fellow commissioners on a trip to China by an NAIC delegation, which returned to the United States on Tuesday.

NAIC and Chinese insurance officials met in Shanghai and Beijing as part of an ongoing effort between regulatory authorities in the two countries to share information that has been underway since a Memorandum of Understanding was signed last year.

The memorandum states that the NAIC and China Insurance Regulatory Commission will "provide for mutual assistance and the exchange of information for the purpose of facilitating the performance of insurance regulatory functions under the respective laws, regulations and requirements of China" and NAIC members.

Mr. Pickens noted that with a population of 1.2 billion, China has a penetration of the insurance market of "under four percent."

The NAIC president told National Underwriter that in discussions with commission officials he was impressed "by the openness of Chinese regulators."

He said they had agreed to loosen restrictions on foreign firms that include a requirement that they operate as joint ventures with local Chinese companies.

Mr. Pickens said Chinese regulators told him that one of their biggest problems is with agents who either do not understand or misrepresent the products they sell.

"Some [Chinese] companies have hundreds of thousands of agents who are the equivalent of our captive agents," Mr. Pickens noted. He said that it was only in 1995 that China's current law regulating insurance sales was put into place.

Mr. Pickens said plans are being discussed for a possible program that would see China send interns to work in this country with insurance departments in some of the larger states.

Beside Mr. Pickens, the NAIC delegation to China included Cathy Weatherford, NAIC executive vice president; Tom Gallagher, chief financial officer with Florida's Department of Financial Services; John Morison, Montana commissioner of insurance and securities; George Brady, NAIC international counsel; and Leo Yanqi Liu, Arkansas insurance department manager of financial analysis.

Mr. Liu, who acted as interpreter for the group, is a native of China.