An influential lawmaker pushing the nation's insurance commissioners to open up their locked-door executive sessions suggested last week that states might seek a cut of the revenue generated by data sharing via the regulators' national organization.

Rhode Island State Rep. Brian Kennedy, D-Hopkinton, vice president of the National Conference of Insurance Legislators, on June 1 sent a letter to his colleagues discussing the open meetings issue and calling on them to consider action to stop closed sessions conducted by the National Association of Insurance Commissioners.

While many of these legislatures are currently not in session, he said that when they return they can consider the issue.

Rep. Kennedy said he has spoken with Rhode Island's finance committee chair about why state data is being provided free of charge to the NAIC when it is not complying with state open meetings laws.

Rep. Kennedy said it is reasonable for cash-strapped states to ask for a percentage of the revenue of data they supply. For instance, he said, in Rhode Island there is a budget deficit of over $300 million that had to be closed, and a share of such revenue would be appropriate to consider. "I don't see why not. They are making money off of the information," he said.

On the issue of providing state data to the NAIC, Kentucky State Rep. Robert Damron, D-Jessamine, NCOIL's treasurer, said he would have to look at the issue more closely and determine how much of his state's information is used and remarketed, and whether the state is at liberty to share information and charge for it.

Rep. Kennedy has been consistently vocal in his opposition to closed meetings that leave out input from legislators and others in policy discussions, although he does concede that in certain cases--including discussions of specific individuals or companies, pending litigation or trade secrets--closed meetings are warranted.

"It is ultimately for the good of state-based government to encourage legislators to get more involved in what is going on," said Rep. Kennedy.

He suggested that a lawmaker liaison committee be established to attend quarterly NAIC meetings. He said the panel could include all legislator groups such as the National Conference of State Legislatures as well as NCOIL.

"We should be working in tandem. We shouldn't be viewed as the enemy."

R.I. Rep. Brian Kennedy

V.P., NCOIL

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