BestDay Audio: NAIC Executive Weatherford Answers Budget Critics.OLDWICK, N.J. -- In an exclusive BestDay Audio interview, Catherine J. Weatherford, executive vice president of the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. , (NAIC NAIC See National Association of Investors Corporation (NAIC). ) responds to those who criticize crit·i·cize v. crit·i·cized, crit·i·ciz·ing, crit·i·ciz·es v.tr. 1. To find fault with: criticized the decision as unrealistic. See Usage Note at critique. the level of surplus held by the organization. The full conversation is heard in the October 6, 2006 edition of BestDay Audio, an online insurance news program at http://www.bestdayaudio.com. The NAIC's surplus funds Surplus funds Cash flow available after payment of taxes in a project. grew from $21.77 million in 1995 to $56.2 million in the 2007 proposed budget, which anticipates $63.4 million in revenue, up 6.81% over this year's budget. Weatherford cautions those who criticize the NAIC's surplus to first consider that many of the very trade organizations doing the criticizing are themselves holding upwards of 150% in reserves. She makes it clear as well that the NAIC's reserving goal is not arbitrary. "We spent six months working with a consultant and with our members in dealing with our short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. and long-term risks, because that's what reserves are based on: risk," Weatherford said. The individual episode containing the Weatherford interview is available at: http://feeds.feedburner.com/~r/BestdayAudio/~5/33291532/20061006.mp3 A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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