Two insurance trade groups said they are opposing a portion of the National Association of Insurance Commissioners' proposed 2006 budget that would fund storage of industry members' fingerprints.
Late last week the NAIC Internal Administration EX1 committee approved a budget that calls for projected revenues of $59.3 million, which is a .2 percent increase of the 2005 figure.
The budget calls for continuation of the project to create a nationwide repository of fingerprints for insurance producers and company officers and directors.
Wes Bissett, senior vice president for the Independent Insurance Agents and Brokers of America, said he hopes the NAIC stops funding for the project all together.
"The regulators have never justified the need for this type of warehouse, and they have moved to establish it very quietly," he said.
Mike Koziol, assistant general counsel for the Property Casualty Insurers Association of America (PCI), said his organization also opposes the project.
An NAIC spokesman said the "proposal builds upon the successes of the pilot's first phase, by implementing additional hardware, software and staffing resources that will allow additional states to participate in the pilot repository."
Mr. Bissett called the current five-state pilot project "secretive."
"No information has been provided to the pilot sector," he said.
In addition, the NAIC budget approved Phase II of a national portal framework that will allow for a single sign-on to the NAIC, the National Insurance Producer Registry and state Web services.
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