Declarations

Insurance Industry Move

“Shortly after September 11, it became very clear to me that the federal government lacks the expertise it needs on insurance policy. Our experiences after Hurricane Katrina and the ongoing problems in the bond insurance marketplace have only reinforced my views.”

—Chairman of the House Capital Markets Subcommittee Rep. Paul Kanjorski, D-Pa., explains why he introduced legislation that would establish an Office of Insurance Information within the Treasury Department. The Democrat Kanjorski’s proposal is similar to one of the recommendations contained in the Treasury Department’s recent Blueprint for a Modernized Financial Regulatory Structure. That blueprint called for a federal Office of Insurance Oversight. The National Association of Insurance Commissioners have an office in Washington, D.C., but the organization’s home office is in Kansas City.

Drug Surveillance

“We’re moving from a reactive dependence on voluntary reporting of product safety concerns to a proactive surveillance of medical products that are currently on the market.”

—Health and Human Services Secretary Mike Leavitt offers reporters an explanation of why U.S. health officials have plans for a new computer tracking system designed to help them identify dangers from prescription drugs and medical devices already on the market.The system would enable the Food and Drug Administration to search various databases for possible signs of side effects. The databases include that of the government’s Medicare health insurance plan for the elderly and disabled. The FDA’s safety monitoring has been criticized as inadequate and slow, especially after Merck & Co Inc.’s 2004 withdrawal of painkiller Vioxx because of increased risk of heart attacks and strokes.

Insurance Filings

“We welcome public input on these important insurance filing issues and encourage anyone with concerns or comments to submit them either electronically or at the hearing.”

—The Michigan Office of Financial and Insurance Regulation’s (OFIR) Commissioner Ken Ross says that a public hearing on May 29, 2008, allows consumers to offer comments that will assist the Commissioner in determining whether to require insurers to file policy forms, rules, and rates electronically via the System for Electronic Rate and Form Filing (SERFF) and also whether to amend or modify Exemption Order 97-010-M to require insurers to submit additional policy forms to OFIR for prior approval before they are utilized in the market. Currently insurers have the choice either to mail required rule, rate, and policy form filings in paper format to OFIR or to sign up voluntarily with SERFF and submit all documents electronically to OFIR via SERFF. It is unclear when a decision will be made by the OFIR on the issue.

Topics Legislation