Consumer Groups Clash With NAIC President
National Underwriter
March 8, 2004

The National Association of Insurance Commissioners should ask its current president to resign if he continues to pursue a deregulation agenda that places the viability of state regulation at risk, a coalition of consumer groups contend.

NAIC President Ernst Csiszar, who is South Carolina's commissioner, favors broad deregulation, and his views "are on the extreme end of the spectrum of views of members of the NAIC," the coalition charged in a letter to all the members of the Kansas City, Mo.-based group.

"Consumers will be hurt and state insurance regulators deprived of authority to help consumers or address market problems under the deregulation agenda," the coalition added in the letter.

The letter was signed by J. Robert Hunter, director of insurance for the Consumer Federation of America, and Norma P. Garcia, a representative of Consumers Union, both based in Washington, on behalf of a group called Americans for Insurance Reform. The letter charged that Mr. Csiszar pushes his agenda by ensuring that only his perspective is presented to fellow regulators.

The letter said that the consumer organizations have no objection to a healthy discussion of the issues that includes all perspectives. "But when Director Csiszar uses his position as NAIC president to stifle debate, eliminate opposing views and push his radical deregulation agenda, he is not serving theNAIC as an institution, other state insurance regulators or consumers," the letter said.

For a copy of the complete article, contact AIR.