Skip First Level Navigation | Skip All Navigation

Site Map   Search INS

Augusta, Maine -

Maine Superintendent of Insurance Mila Kofman is pleased and encouraged with today’s vote by the executive committee of the National Association of Insurance Commissioners to reject a push by some in the industry to weaken financial protections that are in place to guard against insurance company insolvency – protections that protect insured consumers.

These proposals would have relaxed various regulatory requirements and allowed insurers to claim higher levels of capitalization on their financial statements through devices such as increased recognition of intangible assets.

“I recognize insurers’ need to assure the public that they are fundamentally sound despite the stresses that all businesses are experiencing,” Superintendent Kofman explained. “But that is precisely why now, more than ever, we need realistic and credible financial evaluations to guide us through these troubled times and preserve the confidence of the public."

"As a member of the Working Group appointed by the NAIC to evaluate these proposals, I worked hard to advocate a thoughtful approach based on evidence, and to open up the deliberative process to the public. I am gratified to see that the work my colleagues and I have done has paid off. Our high regulatory standards have made the insurance industry the healthiest sector of the financial market, and both consumers and the industry itself will benefit from maintaining those standards and the integrity of our regulatory process. I applaud the courage of my fellow regulators in voting to maintain those standards and reaffirm our commitment to consumer protection.”

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

###

Last Updated: October 28, 2009 1:25 PM