National Association of Insurance Commissioners (NAIC) Seeks Comments on Draft Lender-Placed Insurer Data Call by November 25

Nov 18, 2013

 

Comments on a draft data call directed to lender-placed insurers are being solicited by the National Association of Insurance Commissioners (“NAIC”) on behalf of Mississippi Insurance Commissioner Mike Chaney, NAIC’s Property and Casualty Insurance (C) Committee (“Committee”) Chairman.

A copy of the draft data call can be viewed by clicking here.

    The NAIC requests that written comments (in Microsoft Word format only) should be forwarded to Pam Simpson (psimpson@naic.org) at the NAIC no later than Monday, November 25.  Interested parties submitting comments are asked NOT to redline or otherwise amend the existing draft.

      A conference call to discuss comments will be held in early December.

      The Committee’s 2014 charges include the review of information gleaned from an August 9, 2013 public hearing on lender-placed insurance to determine whether changes to the NAIC’s Creditor-Placed Insurance Model Act (#375) are warranted.  Subsequent work on the model, if necessary, would be completed by the NAIC’s 2014 Fall National Meeting.

      According to the draft data call, important questions pending in the lender-placed insurance (“LPI”) market have prompted the need for acquiring loan-level data for analysis purposes.

      Many of the data call fields require multiple records of policies and claims, inasmuch as there may be placements on a property over time or multiple claims may occur.

      Information is also sought on how repair work vendors are selected and how their work is evaluated to aid in understanding how carriers determine what portion of their LPI book requires reinsurance.

      In its introduction, the draft LPI data call explains that information is needed from the years 2003 to 2012 to afford a better understanding of how LPI practices may have changed during the financial crisis.

      Hyperlinked documents and audio files from the NAIC’s August 9, 2013 LPI public hearing are below.

      Public Hearing on Private Lender-Placed Insurance
      Thursday, August 9, 2012
      1:00 – 5:00 p.m. ET

      Hearing Testimony:

      Audio:  

       

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