Florida Office of Insurance Regulation: Florida Insurance Commissioner Kevin McCarty Co-Signs Letter Urging NAIC Adoption of Amendment Preserving the Role of Agents

Oct 20, 2010

The following new release was issued by the Florida Office of Insurance Regulation on October 20, 1010:

 

Today Florida Insurance Commissioner Kevin McCarty co-signed a letter to National Association of Insurance Commissioners (NAIC) President Jane Cline urging the NAIC to adopt an amendment to the proposed Regulation for Uniform Definitions and Standardized Methodologies for Calculation of Medical Loss Ratio for Plan Years 2011, 2012 and 2013.

The amendment would exclude producer compensation from the MLR calculations by changing the definition of earned premium. “It is imperative the NAIC take definitive action to preserve the role of agents in giving consumers advice in purchasing health insurance in this increasingly complex regulatory environment,” said Commissioner McCarty.

The proposed amendment specifically states:

“For purposes of this regulation only, the term ‘earned premium’ shall not include fees or commissions included in premiums that are collected solely for the purpose of passing such fees or commissions on to an unaffiliated third party insurance producer to the extent such fees or commissions are actually paid.”

The NAIC plenary is scheduled to vote on the MLR issue during the Joint-Executive Committee meeting tomorrow.  The commissioners have gathered in Orlando for the fall 2010 NAIC meeting.

Find this news release at: http://floir.com/pressreleases/viewmediarelease.aspx?id=3724