The National Association of Insurance Commissioners will take no further action on regulation of the use of loss history databases.
At the meeting Tuesday of the NAIC Market Conduct Committees, regulators decided against developing either a model law or a series of best practices to guide states in regulating loss history databases.
Don Cleasby, assistant general counsel of the Property Casualty Insurers Association of America (PCI), said he agreed with the committee's decision, asserting the debate over the issue has been well underway in state legislatures for several sessions now.
Earlier this year, the National Conference of Insurance Legislators approved a model law regulating how insurance companies could use loss history in underwriting homeowners' insurance.
The model addresses how carriers can use those claims that did not result in any payment and what role the loss history of the property, as opposed to the applicant, should play in the underwriting process.
In addition, it addressed concerns that the use of loss history databases such as Choicepoint's Comprehensive Loss Underwriting Exchange was somehow automating the process to the consumer's disadvantage.
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