National Association of Insurance Commissioners Study Group Requests Comments on Low-Income Household Auto Insurance Marketplace Draft Work Plan by July 3, 2012

Jun 6, 2012


After its meeting yesterday, June 5, 2012, the National Association of Insurance Commissioners (“NAIC”) Auto Insurance Study Group (“Study Group”) requested comments and recommendations on a proposed Draft Work Plan designed to review issues relating to low-income households and the auto insurance marketplace.

The Study Group was created in the wake of a Consumer Federation of America (“CFA”) report that examined the effect of certain insurance practices on low- to moderate-income consumers nationwide.  To view the study, click here.

In a May 25, 2012 letter to NAIC Chairman Kevin McCarty, an array of national consumer advocacy organizations described “unaffordable and often unfairly priced automobile insurance” as “one of the single most significant barriers to economic opportunity for working families.”

Comments on the Draft Work Plan should be sent to Aaron Brandenburg ( by the close of business on July 3, 2012.  The NAIC has requested that any comments on the Draft Work Plan should be made in a narrative format, rather than by making changes to the specific document.

The Study Group hyperlinked documents below are also posted on its corresponding NAIC Web page

The Study Group is a joint effort between the NAIC’s Property and Casualty Insurance Committee and the Market Regulation and Consumer Affairs Committee for the study of the auto insurance markets, with a focus on reviewing issues relating to low-income households.  

The Study Group will oversee the effort, which will entail examination, analysis and recommendations on the availability and affordability of auto insurance for low-income consumers and the impact of insurer and government auto insurance-related practices on low-income consumers.  This will include, but not be limited to insurer sales, marketing, risk classification, premium financing and claim settlement, and government enforcement of financial responsibility laws.  Much of the proposed project focuses on collecting insurer data.

The Study Group has been asked to issue annual reports with findings at the NAIC’s Fall National Meetings in 2012, 2013 and 2014.


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