The

INSURANCE

RECORD THE VOICE OF TEXAS INSURANCE Published Since 1934 • Dallas, Texas February 12, 2009 • Vol. 75 No. 4

Regulators Nix Industry’s Request To
Lower Capital, Surplus Standards

KANSAS CITY, Mo.—Insurance regulators, working together through the National Association of Insurance Commissioners (NAIC), have denied a request from the life insurance industry to relax capital and surplus requirements. This action was taken by the NAIC Executive Committee during a meeting held Jan. 29 via teleconference.

Hold to that Strength “So far, the insurance industry is in much better condition than most of the rest of the financial services sector because of strong state solvency regulations,” said NAIC President and New Hampshire Insurance Commissioner Roger Sevigny. “Simply put, the industry has not made a credible case for why we need to make changes on an emergency basis,

and why those changes should be limited to the specific proposals made by the industry.”

Talking Up the Subject

During a four-hour public hearing held Jan. 27, 2009, regulators took comments from industry representatives, consumer groups, and other interested parties on the industry’s nine proposals.

Following the hearing, members of the NAIC Capital and Surplus Working Group recommended the rejection of three proposals, and the approval of variations of six other proposals impacting reserving requirements, reinsurance continued on page 4

Rep. Quintanilla:
Just Drive, or Pay the Price

In This Issue TDI Posts December Miscreant List

By Glen E. Hargis

MarketScout Notes: Price Declines have Bottomed-Out

AUSTIN—Phrases like “Stop hitting your sister” or “don’t make me come back there” would be no-nos for drivers if HB 738 becomes law in Texas. Sponsored by “Chente” Quintanilla (D-El Paso), the risk management-type bill does not directly outlaw any activity, but it does raise the fines for traffic offences committed while engaging in a number of distracting activities.

Re: Memorandum of (mis)Understanding

Karen K. Farris to Receive Kim Dawson Attitude Award

Seems Well-Meaning

Quintanilla would steer drivers away from bad acts including reading, writing, performing personal grooming, consuming food or a beverage, interacting with a continued on page 4