Insurance Insights

May 23-29, 2016

A team effort

By Allen Kerr

Last week, members of my staff travelled to Washington as part of a fly-in for the National Association of Insurance Commissioners.  Our team was part of a 39-state contingent who met with Congressmen and Senators about important issues that affect how the Arkansas Insurance Department can best work on behalf you.

Our staff had the good fortune to have meeting with our whole delegation, and met with every of our elected officials except for one due to the fact our meeting was scheduled at a time votes were being held.

We discussed the importance of a piece of legislation that passed the House of Representatives unanimously, the Flood Insurance Market Parity and Modernization Act (H.R. 2901), which would lead to increased private sector involvement in the sale of flood insurance, and will help provide consumers with access to additional options for flood insurance products and coverage potentially at more affordable prices.  This bill will head to the Senate, and will hopefully become law very soon.

We also encouraged our delegation to support new legislation being drafted that would provide state governors and legislators with the tools they need to protect consumers from excessive air ambulance costs.  Any action by states is currently preempted by the federal Aviation Deregulation Act of 1978 (ADA).  By including air ambulance providers in this federal act, states have no regulatory authority to establish standards for network participation, reimbursement and balance billing, or transparency.  And the consumer pays the price.  This legislation would enable states to enact appropriate laws and regulations to prevent consumers from receiving exorbitant out-of-pocket charges for out-of-network air ambulance services, particularly in rural areas.

Among the other issues discussed with our delegation were cybersecurity protections in the insurance industry, and ways to improve the Financial Stability Oversight Council (FSOC) in order to reduce risks to the overall financial system.

But the biggest message we had for Congress was this: State Insurance Regulators are the experts and we protect their constituents.  AID’s team of professionals are the boots on the ground for insurance regulation, making sure that consumers are protected and companies remain solvent.  We are all members of the same team, and it takes a team effort to do right by all hardworking Arkansas taxpayers.

It is my pleasure to continue to serve you as your Insurance Commissioner.  For more information on the Arkansas Insurance Department, please visit http://insurance.arkansas.gov, follow us on Twitter at http://twitter.com/ARInsuranceDept and Facebook at http://www.facebook.com/ArkansasInsuranceDepartment.  

Allen Kerr was appointed Arkansas Insurance Commissioner on Jan. 13, 2016, by Governor Asa Hutchinson.