“Moreover, the proposal fails to look at any other alternatives to current regulation besides collateral, and fails to consider any risk other than credit risk,” he said.

NAIC President and Maine Commissioner Al Iuppa and Massachusetts Commissioner and Task Force Chair Julie Bowler proposed the new scheme to meet the concerns of non-U.S. reinsurers, who feel they face an unlevel playing field in the domestic reinsurance market.

The regulators will also consider revisions to the Insurance Receiver Model Act dealing with large deductible issues.

The so-called “Arkansas Amendment” provides that when a state guaranty fund pays a claim with a large deductible, the subsequent policyholder reimbursement belongs to the guaranty fund, as opposed to the receiver who holds the assets of the liquidated company.

The NAIC will also hold a public hearing on insurance availability that is expected to focus on urban markets and risk classification.

Consumer groups have claimed that a multitude of new risk classifications have served as a new way of insurers getting the rate increases they have sought, while some discriminate against the poor.

But the insurance industry contends that new classification schemes just provide a more accurate method of assessing risk and rates.

AIA assistant general counsel David Snyder said he hopes the commissioners reject demands for more controls over such classifications “so that recent progress can continue to be made on serving customers in all areas, including urban markets.”