Multistate Examinations - Trends and Observations
Whitepaper
Multistate Examinations - Trends and Observations
By Elizabeth Tosaris and Kara Baysinger
The National Association of Insurance Commissioners (NAIC) provides state Departments of Insurance with a mechanism for conducting joint market conduct examinations of insurers and other regulated entities. The NAIC group charged with coordination of these multistate examination efforts is the Market Actions Working Group (MAWG). MAWG reviews insurance companies that are identified as having a current or potential market regulatory issue of national impact, or companies or issues that reach a certain mass of regulatory activity or interest. If called for, MAWG’s members will coordinate a collaborative regulatory response among states who have indicated an interest in the particular issue or entity. As a result of this coordination, at least 20 multistate examinations (MSEs) have been concluded within the last 10 years. This article briefly reviews the main elements of these settlements and comments on some trends and noteworthy exceptions.
