WASHINGTON, D.C., August 13, 2014 - The American Insurance Association (AIA) will state at the National Association of Insurance Commissioners` (NAIC) 2014 Summer Meeting that in order for consumers to be protected, Transportation Network Companies (TNCs) must provide commercial automobile insurance coverage for their drivers. The NAIC will be meeting in Lexington, Kentucky from August 16-19.
The NAIC/Industry Liaison Committee will be meeting on Sunday, August 17 where it will discuss insurance issues pertaining to ride-sharing and TNCs. Eric Goldberg, AIA`s vice president for state affairs, will provide comments about the need for TNCs and their drivers to ensure that there is commercial automobile coverage available for their transportation-related operations.
"Ensuring that proper commercial automobile insurance is in place for these business activities is essential to protecting consumers, drivers and the public against unforeseen risk or loss when using these services," says Goldberg. "As the popularity of TNCs continues to grow, any regulation or legislation must not shift business risks onto a vehicle`s personal auto insurance policy and preserve the ability of insurers to use the livery exclusion in personal automobile policies. Personal automobile policies were not designed to cover commercial activities, such as driving people for money."
The Corporate Governance (E) Working Group will also meet on Sunday, August 17 to consider adoption of the Corporate Governance Annual Disclosure Model Act and Regulation. AIA has worked with interested parties throughout the development of the Model Act and Regulation to ensure an acceptable final product.
"Over the last two years, AIA has worked with interested parties to develop this Model Act and will support its adoption by the Working Group," said Adam Kerns, assistant general counsel for AIA. If the Model Act is approved by the Working Group it will then go to the Financial Condition (E) Committee for adoption.
The International Capital Standards Forum is scheduled for Friday, August 15. The NAIC planned this forum in order to have an open dialogue among U.S. state insurance regulators and interested parties on the progress of international capital developments, particularly those related to development of a global Insurance Capital Standard (ICS). Currently under development at the International Association of Insurance Supervisors (IAIS), the ICS is intended to provide a risk-based, group-wide global insurance capital standard for Internationally Active Insurance Groups (IAIGs) starting in 2016.
"While we have some concerns about the development of a global capital standard given legal and regulatory differences around the globe, AIA remains engaged and involved in the development process at the IAIS," says Phillip Carson, AIA associate general counsel & director of financial regulatory policy. "We appreciate the opportunity to have an open dialogue at this forum with U.S. regulators and interested parties about the development of an ICS and how to best address the challenges that lie ahead."
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Source: American Insurance Association via GlobeNewswire