NAIC's model is an adaptation of the Market Conduct Surveillance Model Law adopted Feb. 27 by the National Conference of Insurance Legislators, Albany, N.Y. It arrived just prior to today's insurance regulation hearing by the House Financial Services Committee.

One of the changes to the model reasserted a commissioner's authority to make decisions on market conduct matters.

The change relates to language outlining market conduct exams which specifically target individual companies for an on-site investigation as opposed to a standard data collection and conduct review.

The new language states that when a commissioner determines that available market conduct actions are not appropriate, the commissioner can examine on-site market conduct in accordance with NAIC market conduct uniform examination procedures and the Market Conduct Examiners Handbook.

The new draft also addresses concerns raised over the treatment of confidentiality requirements. Initially, the language stated that all information gathered in relation to a market conduct action or market analysis would be confidential and privileged and not be subject to a subpoena and "shall not be subject to discovery or admissible in evidence in any private civil action."

The change clarifies that the provision would apply to documents except "as otherwise provided by law or otherwise publicly available."

The changes were the result of recent comments from regulators, insurers and consumer advocates.