A Look at NAIC's Progress On Modernization Initiatives.

A year has passed since the National Association of Insurance Commissioners signed its statement of intent to rebuild the systems of state regulation. The following is a summary of the status of these initiatives.

* NARAB: The NARAB Working Group has progressed toward its goal of creating national standards for all states by November 2002, so Congress will not create a National Association of Registered Agents and Brokers to handle national licensing.

Nine states are NARAB-compliant. Bills are pending in 29 states, and legislative action is expected in about 40 states this year.

* Privacy: Commissioners unanimously adopted model privacy regulations in September. Thirty-six states have said they will enact the model regulation, which provides additional "opt-in' protection for consumers about release of their personal info.

* Product Speed to Market: Ten states will participate in a limited launch for a single-point-of-file system for three life and health products sold in multiple states. The states represent 35% of national premium volume.

* Treatment of National Insurance Companies: The National Treatment and Coordination Working Group expects to achieve several initiatives by June.

These include full state participation in the Uniform Certificate of Authority Application process and development of "best practices" for a company's admissions process.

* Cooperation Between State and Federal Regulators: Commissioners have negotiated model agreements for sharing information with federal regulators. Individual states are now in the process of signing agreements with each federal regulator.