THE REGULATOR® SUMMER 2017 INSURANCE REGULATORY EXAMINERS SOCIETY

Process Review for Market Conduct Examinations: The Missing Piece of the Puzzle Part 1 of 2 by Donald P. Koch, CIE, AMCM

Have you ever wondered understanding of the how the current market regulated entity’s operation conduct examination process and it’s efforts to comply WHAT’S INSIDE might be improved or felt with states’ statutes, rules Letter from the President...... 4 that somehow the process and regulations? Past President’s Remarks...... 5 was missing something? Issue Background Have you noticed that State Chairs Q and A...... 7 In 1996, while still working the tests you apply during 30 Year Anniversary...... 8 an examination do not as Chief of Market Surveillance for the State Member of the Month...... 9 necessarily give you as full Donald P. Koch a picture of the regulated of Alaska, I received a Educational Corner...... 10 entity under examination preliminary report from Highlights from CDS...... 11 my best team of examiners uncovering as you might like to have? The current Zoning In...... 12 examination process is designed to numerous violations of Alaska statutes provide a snapshot of the results of by the company under examination. New Members & Designees ...... 14 a regulated entity’s operations and to Upon reviewing the report submitted by Editor’s Corner ...... 15 quantify the results of that operation in my examiners, I was not able to detect terms of compliance or non-compliance any pattern to determine causation for with the examining state’s statutes rules the results observed. This was troubling and regulations. It is essentially reactive because corrective action plans are difficult to structure absent distinct since the methodology is designed to MARK YOUR CALENDAR provide a quantitative and microscopic causation. On questioning, both the examiners and the insurer were not able view of errors or violations that ICAE’s Fall 2017 Exchange occurred sometime in the past. It uses to pinpoint causation or any reason for September 24-27, 2017 sampling methodology to select files the errors. Pittsburgh, PA for review and then applies standards “It occurred to me that an and tests to determine whether the files IRES Foundation School reviewed comply with the applied test. appropriately managed company April 8 - 10, 2018 Tuscon, AZ The current process and methodology ought to be able to detect the kinds is not particularly good at identifying of errors seen and take corrective August 12-15, 2018 underlying causes for error unless they CDS & Regulatory Skills are fairly obvious. It is ineffective at action.“ Workshop | San Antonio, TX identifying prospective or potential It occurred to me that an appropriately August 18-21, 2019 issues. The process is a horizontal view managed company ought to be able to CDS & Regulatory Skills of the regulated entity’s results at the detect the kinds of errors seen and take Workshop | Spokane, WA operational level. corrective action. It ought to be part of the management structure. It was clear in Visit go-ires.org/events/upcoming for So what is the missing component in details and more upcoming events. the examination process? What can the this case that management did not have examiner do to provide a more complete a clue concerning why they were having

The professional society committed to excellence in insurance regulation. Your network of knowledge for insurance regulation. The Missing Piece of the Puzzle– continued from page 1 a problem. Their lack of management The Management Cycle and the Logic Is the process periodically tested and oversight and control was the problem. for a Process Review Methodology updated? After a fair amount of research into The management of a well-run • Measurement. The measurement management structures and processes, company, insurance or otherwise, adopts function evaluates the results of we have developed our current proposal. processes that are similar in structure. planning and implementation and Our proposal, currently before the An absence or ineffective application of is usually found in internal audits, NAIC Market Conduct Examination such processes in an insurance company management reports, supervisory Standards (D) Working Group chaired often portents an adverse result usually reports, minutes of the Board, by Director Bruce Ramge of Nebraska, detected in sample testing conducted minutes of the Compliance is to add a chapter to the NAIC’s Market during a market conduct examination. Committee, minutes of the Regulation Handbook (Handbook). The management cycle typically includes Quality Review Committee, market The Chapter outlines and explains an the following components: Planning, conduct examination reports, etc. additional examination methodology Implementation, Measurement, and This measurement is concerned that can be used in conjunction with the Reaction. with the quality of information current methodology or as a stand-alone • Planning. The planning function developed to inform the Board of methodology. in the management cycle is where the results and the effectiveness of The principal regulatory interest in direction, policy, objectives, and its directives. This function must developing new tools for review is goals are formulated. The function develop information that confirms not the quantification of violation or is often predicated on a risk or refutes that the intended process error, but rather the qualification of the assessment and mitigation review. is utilized, functioning and working. management structure and its ability Planning is most often reflected in Without measurement, management to provide effective compliance on a the written policies and procedures cannot know whether its directions current and prospective timeframe. of the regulated entity. These may are being implemented effectively. Interestingly, the notion has some also be called processes, strategies, The measurement process must be support from the General Accounting or directives, and are tested for written, formal, and documented. Office dating back to 2003. In its’ clarity, currency, functionality, and The question in this case is, how September 30, 2003 report, GAO-03-433 conflict with existing statutes. does the company know that Insurance Regulation, the Government its intended process is utilized, • Implementation. When the functioning and working? Accounting Office recognized the need direction, policy, objective or goal is to include corporate governance (process translated into a written procedure • Reaction. The reaction function is review) elements in the examination of the company and is disseminated where the company tests what it has approach with the following statement throughout the company to learned through the measurement in its conclusions: “In addition, existing appropriate and affected persons, of its procedures. It needs to computerized audit tools could allow implementation of the planning have some reasonable way to regulators to substantially change the function in the management cycle utilize the information arising out way examinations are done by shifting occurs. It is important to test the of internal audits, management the focus from file review to a review quality of the procedure to assure reports, and complaint systems. of controls, systems, and processes and that the regulated entity is effective This would typically be reflected possibly by shortening the time needed and is distributing its directives. in the responses to internal audits, for the examination.” The elements of this testing management reports, supervisory We arrived at the same conclusion includes but are not limited to: Is reports, minutes of the Board, following our research arising from the the procedure in writing? Is the minutes of the Compliance 1996 experience. However we did not procedure coherent, readable and on Committee, minutes of the Quality feel that the methodology needed to point? Is the procedure functional, Review Committee, market conduct rely on any specific computerized audit does it fit the intended purpose? examinations, and errors detected tool. The point made was to suggest Does the procedure comport with through company oversight. This that a more vertical view of a regulated statute and contain state exceptions information needs to flow directly entity would be useful. The GAO has where applicable? Is the procedure back to management so that it suggested a replacement of the current up to date? Is the procedure readily can use these findings to modify methodology, but I believe that a available to affected persons? Are procedures. The company should supplement to the current methodology realistic controls in place to assure also resolve, through documented is what is needed. How it would fit into a the process is working as intended? remediation, any errors that resulted specific called examination would be part Is the procedure utilized? Are in harm to policyholders and the of the planning for that examination and affected persons trained in the use public. dependent on the regulatory goals for of the procedure? To what extent is that examination which is discussed later. the process control computerized?

The Regulator® • SUMMER 2017 2 The Missing Piece of the Puzzle– continued from page 1 How a company manages its’ operations from policy and do not really constitute view or horizontal view of a regulated is something that a company should procedures. In this presentation, process entity operation. Both methods are know about itself. In some cases, and procedure are used interchangeably. valid and may be used in conjunction Federal Law insists on it. The Sarbanes- How a regulated entity structures and with each other. To test the validity of Oxley Act of 2002 essentially requires documents its’ written processes tells the the use of this approach, laboratory documentation that certain levels of regulator a considerable amount about states have conducted examinations corporate governance are in place and the regulated entity. Written processes utilizing process review and conventional operating. indicate whether a regulated entity is including sampling. The examiners have Throughout the NAIC Market proactive or reactive in the management then compared the Regulation Handbook, there are of its operations. The regulator can results of the samples suggestions in the review criteria for determine whether the corporate impacted by particular the various standards, to review a stated compliance activities are a cause for written processes procedure. A procedure review should concern and whether particular areas of with the management determine whether the management concern to the regulator are managed in analysis performed cycle relating to the procedure at interest a way to avoid the need for regulatory relating to that process has adequately considered each of the interaction. and the findings have elements noted above. Unfortunately, Throughout the Handbook, there are confirmed the utility the Handbook does not provide any suggestions in the review criteria for the of the methodology. guidance on how such a review should various standards to review a particular Review of written processes varies be accomplished. procedure. For example, Standard 2 for depending on the lines of business How a company structures and Operations/Management in Chapter written by a regulated entity, the reason documents its procedures will tell the 16 states, “Review regulated entity for examination (target or “baseline”), regulator a considerable amount about records, central recovery and backup and a variety of other considerations. the company. It will indicate whether a procedures.” It then adds, “Review Each of the standards appearing company is proactive or reactive in its computer security procedures.” Standard in chapters 16 through 24 of the management of its operations, whether 3 of the same section adds, “Determine Handbook is a potential review subject. the corporate compliance activities are if the regulated entity has procedures Ethical Management in place to prevent persons convicted a cause for concern, and, whether areas Ethical Management is management of concern to the regulator are managed of a felony involving dishonesty or breach of trust from participating in based on appropriate moral standards in a way to avoid the need for regulatory by which right choices are made. interaction. the business of insurance.” It also adds another, “Determine if the A critical element in any program Policies and Procedures regulated entity has procedures in to develop allocation of examiner Policies and procedures or processes are place to provide information regarding resources is ethical management. Ethical terms heard with some frequency, but fraudulent insurance acts to the management is not a direct standard they do not tend to evoke an image of insurance commissioner and in a manner currently in the Handbook nor is it a how they might be used in a regulatory prescribed by the commissioner.” statutory requirement of the regulation application. These terms in fact denote There are many other examples of a of the business of insurance. However, two different things. procedural or process review indicated the need for ethical management is in the Handbook. Unfortunately, the strongly implied through the structure “Policies” are the high-level general Handbook is silent concerning what of those statutes. For example, a pattern principles by which an entity guides constitutes such a review. The review of of misrepresentations will raise strong the management of its affairs. It is not a procedure should determine whether doubts about an insurer’s ethical base. critical for the regulator to be concerned the management cycle relating to the The standards and tests found in the with policy statements except to the process at interest adequately considers Handbook are generally objective extent that they represent management’s each of the elements noted in the indicators that can measure this behavior. direction to proceed in a particular discussion of the management cycle. Factors such as regulated entity attitude manner. Policies may be the basis and negative, confrontational, or resistive for procedures. Policies are generally The management analysis of written reaction by regulated entity management too vague to require any regulatory processes is a top-down look at how may be more subjective, but no less interaction unless they are obviously in a regulated entity operates. It can be apparent, to the regulator. Likewise, conflict with a statute. thought of as a vertical view of a a regulated entity with a reputation regulated entity’s operation. It represents “Procedures or processes” are the for being a “good corporate citizen” a somewhat different skill set than specific methods or courses of action typically demonstrates a willingness typically used in the conventional market used to implement a policy or corporate and structure that is responsive to its conduct examination that is more directive. Many companies have customers. To be continued in next edition. focused on a “bottom of the ladder” processes in place that do not derive

The Regulator® • SUMMER 2017 3 Letter from the New President by Ken Allen, AIE, CPCU

The names of those who attended are not 30th anniversary, little over ten years ago to get me to join known to me. And how many attended there seems to the Accreditation & Ethics Committee would be a guess on my part. Where did be a pattern that she was Chairing at that time, and this gathering take place? Another fact here. So for my I’m glad she was persistent. I learned that I don’t have any information about, fellow California so much not just about IRES and its but some of you reading this may be able Department purpose as an organization, but about to shed some light on these points. of Insurance the behind the scenes of what makes colleagues, this IRES such a great organization, what Hot topics such as affordable health is your advance makes it tick: from the budgeting process insurance, repeal and replace, long term notice to begin Ken Allen to coordinating all necessary details in care, price optimization, cybersecurity, preparing for putting on a CDS; from working on telematics, social media, drones, big data, IRES’ 40th anniversary. You have ten matters related to retaining and growing autonomous vehicles, predictive modeling, years to get your Presidential remarks membership to figuring out where the user-based-insurance and parametric or ready! CDS should be held in the future and the peer-to-peer insurance certainly were not thoughts and considerations that go into discussed to the extent they are today. But of course for the time being I must securing a hotel contract. And if not for Instead, topics such as tort reform, the focus on the next twelve months and the any other reasons, my various experiences liability insurance crisis, and perhaps job at hand. There is much work to do. with IRES over the last ten plus years technology advances with respect to this To get a flavor of some of the objectives have certainly enhanced my professional thing called a personal computer and the IRES is looking to accomplish over the knowledge, skills, and abilities, and I have impact of those advances on the business next year, the Accreditation & Ethics had the pleasure of meeting and working of regulating the insurance industry likely Committee will continue to work on with some amazing people who I would dominated the conversations. website updates including getting various have otherwise never gotten to know. It is IRES web-based applications, such as That was 30 years ago, and over the for these many reasons that I am thankful the designation applications, updated course of four recent days in Providence, for IRES, what it stands for, and the work as well as updating the curriculum that Rhode Island, we have celebrated a that it does. can be taken to achieve each of the significant anniversary in the history of IRES designations. The MCM/AMCM So there is my challenge to you: find a IRES, an organization that is dedicated Committee will continue its work on committee or a subcommittee that sounds to enhancing the efforts of insurance redesigning the AMCM course. The interesting, a place where your contributions regulators by ensuring professionalism Membership & Benefits Committee will can help shape IRES’ future, and give it a try. and integrity among those of us consider ways to make a State Chair’s You never know what the experience might who serve to protect consumers and life a little bit easier, seeing what options lead to someday. preserve a robust, competitive insurance are available to State Chairs in terms of marketplace. The principles that drove In closing, I look forward to the coming notifications being sent to the Chair when the creation of IRES 30 years ago are year as IRES President, as busy as it a new member joins their chapter or their equally if not more important today. will be. Whatever challenges lay ahead, chapter roster changes. And the CDS some known, some unknown, IRES has Ten years ago, when IRES marked its Committee will immediately start work on a strong Executive Committee, a strong 20th anniversary, the President of IRES putting together another fine program for Board of Directors, and most importantly at that time also happened to be from next year’s CDS in San Antonio, Texas. a very strong membership base to meet California, and also happened to be In mentioning IRES’ committee work, and exceed those challenges as we from the Rate Regulation Branch at the one of my goals is to encourage IRES celebrate 30 years of IRES, honoring the California Department of Insurance. members who currently do not serve on past, and embracing the future. I’m sure Polly Chan is a name familiar or participate on a committee, to join a to many, and it is because of Polly and committee. I know we are all busy at our her dedication to IRES, her desire that Ken has been with the Rate Regulation Branch of the California jobs; it is difficult to even find the time to California have an ongoing IRES legacy, Department of Insurance since 1989. He was promoted to Deputy participate on an IRES related conference Commissioner of the Rate Regulation Branch in September 2016. someone to pass the torch to, that I am Joining IRES in 2000, Ken has served on the Accreditation & call once a month. Some subcommittees Ethics Committee and the Membership & Benefits Committee, was currently President of IRES. Chair of the CDS Committee in 2014-15, Chair of the Meetings even meet more often than that. And & Elections Committee, and now President. Ken holds AIE® and I do note though, that with Polly taking some calls happen during lunch (well, that CPCU designations, and he was elected to the IRES Board in 2013. Ken, his wife, and daughter live a commuter train’s ride outside of over as IRES President at IRES’ 20th happens a lot on the west coast!). Los Angeles and enjoy all of the amenities that Southern California anniversary, and myself taking over at the has to offer. Polly Chan had to twist my arm a bit a

The Regulator® • SUMMER 2017 4 tax return was filed Past President’s Remarks timely. The finan- By Tom McIntyre, CIE, CICSR, AMCM, cial statements were formatted to comply Thank you to each Committee Chair for vendors and referenced “ChHC” with generally ac- their outstanding accomplishments noted Designation. cepted accounting below. Thank you to each Committee principles using the • The Chartered Healthcare Consul- Member for participating and making modified-cash-basis tant® (ChHC®) designation has the noted accomplishments possible. of accounting. IRES been moved to the National Asso- Tom McIntyre Thank you to the state governments that is in good financial ciation of Health Underwriters. allow its employees to participate on condition. committees and to the contracting firms The Committee also completed an addi- CDS: This year’s CDS included over 70 that allow their employees to participate. tion of the NICE Waiver Request to the different speakers across seven tracks Thank you to our sponsors, as CDS NICE Extension Request on the IRES including: Financial, Health, Market would not be possible without your fi- website. Regulation, Property & Casualty, Life & nancial support. Thank you to everyone • The addition of the NICE Waiver Annuities, IT and a Think Tank Session. that attended this years’ CDS. Finally, Request allows a member to submit The session topics ranged from regu- thank you for allowing me to serve on a written request for a waiver of the latory issues to Disability Income your behalf. reporting requirements for one year Products, Mental Health Parity, Long- Thank you to the IRES Executive on an exception basis for situations Term Care and Wildfires. The Keynote Committee: such as serious illness. Speaker was Commissioner John Doak Tracy Biehn Accreditation & Ethics • Once submitted, the member will (OK) and our Welcome Address was from Superintendent Elizabeth Kelleher Cristi Owen Budget & Finance be contacted to provide a statement regarding his/her situation for the Dwyer (RI). Since this CDS was cel- LeAnn Crow CDS Committee to review at the next ebrating the 30th Anniversary of IRES, Randy Helder Education scheduled meeting. the CDS Committee offered a Scavenger Hunt game to those individuals who Tanya Sherman MCM/AMCM The NICE Program Manual was updated wanted to voluntarily participate. The Ken Allen Meetings & Elections by adding Qualifying Work Experience individuals who completed the required Martha Long Membership & Benefits language, adding IRES Webinar lan- 30 points, their names were placed for guage and added language related to a a drawing and small prizes were given Parker Stevens Publications & PR maximum of 12 hours for attendance at at the Tuesday evening Appreciation Accreditation and Ethics: The A&E NAIC National Meetings. Reception. Committee made the following updates In addition, the A&E Committee Sponsorship Committee- the CDS Spon- for the AIE/CIE General and/or Sus- explored International opportunities sorship Committee was successful in taining Member Applications: through an evaluation of courses offered raising $41,500 (as of this writing). We • Qualifying Work Experience lan- by different organizations and com- had nine (9) Sponsors: four (4) platinum guage added to the General Member municating with other countries and sponsors, three (3) silver sponsors, one Application. international counterparts, and renewed (1) Bronze sponsor and one (1) Patron. the CE Discount Agreement with AHIP • Added LOMA 310 as an alterna- for 2017. The CDS Committee also sent out two tive course to LOMA 311 to both (2) E-blasts each month advertising the the General and Sustaining Member During the end of 2016, IRES com- CDS and providing details about the Applications. pleted renewal applications for the AIE session topics and speakers as advertis- and CIE trademark registrations. This ing for the event. Twitter and Linked-in • Added LOMA 307/308 as alterna- must be completed every ten years. was also used as advertising venues. tive courses to LOMA 361 to both the General and Sustaining Member Budget and Finance: This Budget We also sent a survey to prior IRES at- Applications.Added FAHM as au- and Finance Committee is tasked tendees who had not registered for the tomatic AIE opportunity under the with maximizing investment income, 2017 conference asking about atten- Health Educational Path. maintaining financial solvency, and to dance. (This was done since our initial facilitate effective financial operations. registration numbers were down). The • Added National Association of The budget was completed efficiently Health Underwriters to the list of and in a timely manner. Our nonprofit

The Regulator® • SUMMER 2017 5 Past President’s Remarks – continued from page 5 most common response was budget CDS and also looked at similar associa- the articles are indexed. restrictions. tions and advanced course curriculums. Each quarterly newsletter included a feature member The CDS Committee agreed to con- Based on those evaluations and feed- or Executive Committee tinue to use the electronic check-in for back, it was recommended to revise the Member. attendees to receive their conference AMCM program to be more compre- certificates which saved the CDS Com- hensive and to meet advanced course The Website and Social mittee the cost of printing and postage. requirements. Media Subcommittee worked with Synergos to make edits to Social – The CDS Committee held a Education: The Education Commit- the website. They also maintained the “30th Anniversary Celebration” on tee completed seven webinars in the social media outlets by posting events, Sunday evening, with having a live past twelve months. The sessions were announcements, and news to promote band for our entertainment and we open to all IRES General and Sustain- IRES activities. had an “Appreciation Reception” on ing members and eligible for IRES Tuesday evening, with a comedian as our Continuing Education Credits for those The committee continued to update entertainment. individuals who pre-registered for the the website and social media outlets. webinar. The feedback from those in It worked to enhance the IRES social MCM/AMCM: IRES offered and had attendance indicated all of the presenta- media profile by actively seeking ways successful MCM classes in Chicopee, tions were outstanding. to attract more followers and to provide MA during November, 2016, at the IRES value to the IRES membership. Foundation meeting during March, 2017, Meeting and Elections: The Commit- at the Colorado Division of Insurance tee completed two Career Development Tom has over thirty years of insurance experience. He was employed by two insurers and has worked as a during April, 2017, and in Bethesda, DC Seminar (CDS) contracts this year for contract regulator for the past fifteen years. Tom was during May, 2017, and at CDS in Provi- 2019 and 2020. They updated Commit- the EIC for all of the CMS “federal” examinations dence, RI during August, 2017. tee documents and worksheets to reflect performed from 2002 to 2008. He has acted as an the switch from paper Board of Director EIC on life and health, and property and casualty, and The MCM text book was upgraded for title insurers for several state insurance departments. voting to electronic voting. The docu- the changes at the NAIC and because As an EIC he has performed planning, supervision, ments and worksheets were also updated and review and report writing functions for comple- of our ever changing insurance indus- to address the audit of the Board of tion of an examination. He is knowledgeable in try. Revisions to the MCM textbook TeamMate, Excel and Word. Between being employed Director voting. included: by insurers and working in insurance regulation Tom ran his own business. He performed risk manage- Membership and Benefits: The Com- • Updates to NAIC Committee ment for large commercial employers and performed mittee made efforts to reach out to premium audits for various insurance companies. references; lapsed members and update information Tom graduated from Central Michigan University with a BS in accounting and minor in business admin- • Updated NAIC databases; where needed. They also updated the istration. He graduated from the business school with presentation of membership data avail- • Updated list of SDR’s; and honors. Tom is currently the Director of Regulatory able to the board to make it more user Insurances Services, with Dixon-Hughes Goodman • Incorrect and outdated references LLP. He has earned the following designations: friendly. In addition, they held seven CIE®, AMCM®, CCP, CPCU, FLMI, AIRC, APA, were updated or removed. meetings by conference call for state ARA, ACS, CWCP, and CICSR®. Revisions to the MCM Course Work- chairs. book included: The Committee also awarded four Al • Removal of possible discriminatory Gross/Jim Long Rookie of the year references; scholarships for four zones, the South- eastern, Midwestern Northeastern and • Diversification of names; Western zones. In addition, it organized Advertising Space • Other non-substantive changes; the first Tom Reents Award, which was a memorial presented to the Reents family Available! • One new case study was created. in honor of an educational award in his The MCM Test updates included: name. The Committee also selected re- If you’re interested in cipients for the Al Greer Award and the ® • Removal of outdated references to advertising in The Regulator , Chartrand Communication awards. NAIC systems; and • Clean up any answers that could Publications & Public Relations The Committee published have multiple correct responses. Committee: The Regulator® quarterly. They started The AMCM Subcommittee reviewed indexing the articles from The Regula- evaluations from the course at last year’s tor® and will continue to do so until all

The Regulator® • SUMMER 2017 6 August State Chair Regulator Article By Holly Blanchard, FLMI, ACP, CCP, AINS, AIRC

Behind the scenes on our membership. As Virginia submitted a suggestion that is under of IRES, your state chapter members requested, I have consideration by the Membership Commit- chairs are hard at work been and will continue to help them tee. I look forward to continuing in this creating new opportuni- satisfy their CE requirements. I capacity & to the future with IRES. ties & options for our have also introduced some Bureau 5. What do you think IRES should members. To introduce of Insurance employees to being consider to ensure that they always are you to these unsung a part of this great organization a great organization for Regulators and heroes, we will feature as well as introducing IRES to our Industry members? a state chair in each chapter officers. I have participated addition of on State Chair calls, provided sug- Continue to hold conferences, webinars, The Regula- Laura Klanian tor® . This month, our gestions for webinars, and recently and MCM/AMCM classes. featured state chair is Laura Klanian from Virginia SPONSOR: 1. Tell us a little about yourself. I am a Senior Insurance Market Examiner with Virginia State Corporation Commis- sion’s Bureau of Insurance in the Life and Health Division. I have been with the Bureau of Insurance for 12 years. Having worked in the insurance industry in a provider’s office, for a DME provider, specialty hospital, a TPA, and insurance companies in a variety of capacities, my work experience provided me with a range of experience and understand- ing of how things work. I received my AMCM from IRES in 2016 at the Scott- sdale, AZ CDS. I am a New York native, formerly lived in Pittsburgh, PA and cur- Regulatory Insurance Advisors’ (RIA) rently enjoy living in the Virginia. team of experts provides timely 2. How long have you been an IRES assistance for emerging, complex and member? traditional insurance regulatory issues. I joined IRES not long after starting em- ployment with the Bureau of Insurance. Our committed focus on enhancing 3. What made you get involved as a insurance regulation results in improved State Chair? consumer protection and sustained I like being involved, helping others, and positive outcomes. meeting new people. Being familiar with IRES, I knew what was required and needed as Virginia’s State Chair. At the Holly Blanchard, President request of our membership, I have been [email protected] scheduling regular educational webinars Pieter Williams, General Counsel to help our members satisfy their continu- [email protected] ing education requirements. 4. What impact do you want to have as Lincoln, NE | Freeport, ME a state Chair? 402-217-7745 | 207-228-4603 This being my first year in office, I believe my contributions have had an impact www.RIAConsulting.net

The Regulator® • SUMMER 2017 7 Celebrating 30 Years of Service by Jo LeDuc, AMCM

As we approach the 30 year anniversary In March of 1988, the first Accreditation (CDS) was held of the creation of IRES this October, Committee meeting was held to review in Kansas City, it is only natural to step back and take a 61 designation applications. Twelve MO in June of look at where we came from and reflect (12) Accredited Insurance Examiner 1989. Close to 150 on all that IRES has accomplished. (AIE®) designations and thirty-seven attendees were Jo LeDuc (37) Certified Insurance Examiner present. In addition, IRES came to life in response to a need (CIE®) designations were awarded. IRES had begun regularly publishing to develop and educate professional By November of 1988, the amount of an organizational newsletter – The market regulation staff, both market work needed to sustain the organization Regulator® . conduct examiners and consumer was too much for volunteers to services staff. This need arose as the In less than two years, the organization manage in their spare time; so IRES role market regulation played in the had gone from a vision by the founding hired Chartrand Communications to broader scope of insurance regulation members to reality. In the years since its provide administrative services to the grew. A need for professional market inception, the pace of IRES has done organization. regulators may have been the impetus anything but stand still. The organization for the organization, but from the very As 1989 started, IRES membership has grown, adopted, & expanded in an beginning the organization was meant stood somewhere around 1,000. The 1st effort to continue to meet the needs of to embrace all disciplines of insurance annual Career Development Seminar its members while fulfilling its mission. regulation. During the formative stages of the Over the last 30 years, IRES has: organization, the organization had three • Continued to hold an annual CDS, which remains a premier educational event for names. Initial the working name of the insurance regulators organization was the Society of Market Conduct Examiners (SOMCE). The • Continued to regularly publish The Regulator® second working name was the Society • Adopted a Code of Professional Conduct and Ethics of Insurance Regulatory Examiners (SOIRE). Ultimately the founders settled • Established the President’s Award to recognize individuals who has made a on a more generic name - the Insurance significant contribution to IRES and the regulatory profession Regulatory Examiners Society (IRES). • In conjunction with the NAIC, launched a market regulation school (aka Regulating The generic nature of the name was a the Marketplace School) conscious decision by the founders to reflect the all-inclusive nature of the • Continued to provided support to local State Chapter of IRES, including hosting organization. quarterly informational meeting for all State Chairs IRES was officially established as a • Established the Schrader-Nelson Publications Award established to honor the most nonprofit organization in October 1987. outstanding original contribution to The Regulator® over the previous year The purpose of the organization was • Implemented the National IRES Continuing Education (NICE) program to to enhance the efforts of insurance demonstrate that members holding IRES designations are committed to furthering regulators, regardless of their area of their knowledge/skills expertise, by ensuring professionalism and integrity among the men and women • Hosted educational workshops & roundtables (including joint sessions with SOFE) who serve with state or federal insurance during NAIC national and zone meetings regulatory bodies. This is still a core • Secured service-mark protections of the AIE®, CIE®, CICSR® & AMCM® philosophy of IRES today. designations, protecting and enhancing their value The first meeting of IRES was held in • Established the Al Greer Achievement Award presented to Al Greer to recognize Phoenix, AZ, in December of 1987. At an insurance regulator and IRES member who not only embodies the dedication, the meeting, the Board of Directors and knowledge and tenacity of a professional regulator, but who exceeds those standards the officers were elected. By year end, IRES has 476 charter members. • Launched a website, which has grown from providing basic information about IRES to a fully interactive site with online membership applications, online CE reporting, and IRES event registration The Regulator® • SUMMER 2017 8 Celebrating 30 Years of Service – continued from page 8 • Being more transparent to the membership through posting financial information & meeting minutes in the members area of the website • Established a presence on social media • Partnered with Lands’ End to create the IRES E-store, so members can purchase IRES logo apparel in order to show their pride in and support the organization • Created the Certified Insurance Consumer Service Representative (CICSR®) program • Established the Chartrand Communications Award to recognize those that have made a difference to IRES through their actions • Established the Market Conduct Management (MCM®) designation program • Formed a Past President’s Council to help advise the Board of Directors on specific matters under consideration • Partnered with educational providers, giving qualifying IRES members access special discounts on a variety of educational opportunities • Established the Al Gross/Jim Long Rookie of the Year Scholarship program • Opened the AIE® and CIE® designations to Sustaining members • Created an open forum workshop (aka the Regulatory Skills Workshop immediately following the CDS) to provide an avenue for an open exchange of ideas related to market regulation • Worked collaboratively with other organizations such as SOFE & the AICP to further the organizations agenda • Launched the Advanced Market Conduct Management (AMCM®) designation program • Established the Thomas L. Reents Memorial Scholarship established in honor of the Society’s first President to honor a State Regulator who has demonstrated exceptional promise, professionalism and a commitment to continual improvement • Created a Designation Assistance program to help regulators working toward their IRES designation by providing online facilitated learning sessions • Established the IRES webinar program to help members expand their knowledge and meet NICE program requirements While the list is nowhere near complete and most certainly not in chronological order, it gives you a sense of how much has happened over the years. All of which would not have been possible without the dedication of so many volunteers and the continued support of the entire IRES membership and the IRES Foundation. It is true, IRES has accomplished a lot, but there is so much more to do. Happy anniversary IRES, here’s to the next 30 years!

IRES Member of the Month This Issue: Pieter Williams, MCM,Unaffiliated

Q1: Who do you work for? What is and being a litigation attorney in private and Ethics commit- your job tile? And in a very short de- practice. tees. I am co-chair scription what are your daily duties? of the MCM/ AMCM Committee A1: I work with Regulatory Insurance Q2: How long have you been an and previously was a Advisors, LLC (RIA). My title is General IRES Member and what made you member of the IRES Pieter Williams Counsel & Chief Operating Officer. In decide to join? Foundation Board of this role, I provide regulatory services A2: I have been an IRES member for Directors. for state and federal regulators, regula- about 10 years. tory consulting for insurers, and oversee Q4: How many IRES CDSs’ have you Q3: What committees have you operations of RIA. RIA’s primary goal is attended? served on and what roles did you to enhance existing capabilities of insur- hold? A4: At least 10. ance regulators and to promote balanced regulation of the industry. My prior A3: Currently, I serve on the IRES Board Q5: Is there one session at a CDS that experience includes 14 years as Senior of Directors, and Membership and Ben- stands out in your mind and why? Regulatory Counsel for Unum Group efits, MCM/AMCM, and Accreditation

The Regulator® • SUMMER 2017 9 Member of month continued from page 9 A5: Anything with Jim Mealer and/or Paul Hanson as presenters. Educational Corner Q6: What is a personal or career goal By Jo LeDuc, AMCM that you would like to accomplish in the next 5 years? The National IRES apply excess hours from the prior A6: Smartly grow RIA with my partner Continuing Educa- year to the current reporting Holly Blanchard so that our company is tion (NICE) Program period. a long-term success. deadlines are quickly If you are unable to complete approaching. Q7: When you aren’t working what your CE this year, one year exten- are your hobbies? The deadline to: sions to complete and report your CE are available. Extensions A7: Fly fishing, landscaping, projects at • Complete your are not automatic and must be home, and spending time with family, continuing education requested prior to September 1, our dogs, and friends. is August 31, 2017 Jo LeDuc 2017. To request an extension, Q8: Where did you attend college, • Request an exten- visit the IRES website, log-in what was your major(s), and what sion to complete CE is September 1, to your accounts and complete the was one of your more memorable 2017 Extension Request Form (https:// moments? • Submit your continuing education www.go-ires.org/nice-submission/ A8: I attended the State University of credits is October 1, 2017 extension-request). New York at Plattsburgh and majored in The NICE Program requires 15 hours For more information on the NICE sociology. I also attended the Delaware of qualifying continuing education program, see the NICE Program Manual Law School and received a law degree. (CE) credit to be earned and reported available online at www.go-ires.org. Q9: What is your biggest personal or each year. Courses submitted for credit Ms. LeDuc is an Insurance Administrator at professional accomplishment? must be completed during the current the Wisconsin Office of the Commissioner compliance period September 1, 2016 of Insurance and has been with the office A9: A professional accomplishment that since 1993. Ms. LeDuc has served and to August 31, 2017. is valuable to me is having the opportu- continues to serve in various roles on nity to mentor colleagues, friends, and To check your credit or submit CE various NAIC committees, including the Market Regulation Accreditation Task peers on insurance regulatory matters credits, visit the IRES Web site and Force, Market Information Systems Task and professional development. log-in to your account. Check your Force, Market Analysis Procedures Working credits by selecting My Credits under of Group, Consumer Connections Working the My Account menu option. Submit Group, Market Actions Working Group, and Market Regulation Examination Standards CE credits by selecting Continuing Ed- Working Group. ucation Program (NICE) under of the Ms. LeDuc is a member of and a past Designation Programs menu option. President of the Insurance Regulatory If you are a few credit short this year, Examiners Society (IRES). She has a M.B.A. Webinar and a B.S. in Business Administration. In you can ‘reach back’ and use up to three addition, she has earned the CIE (Certified excess hours from the prior year that Insurance Examiner), MCM (Market were not previously used to satisfy your Conduct Management), CPCU (Chartered Stay tuned for our next CE requirement. You may ‘reach back’ Property & Casualty Underwriter), IRES Webinar coming Fall AIRC (Associate, Insurance Regulatory only one year and you must report the 2017. Complaint Coding Compliance), AIC (Associate in Claims) ‘reach back’ CE credits for this report- and API (Associate in Personal Insurance) and Reconciliation will ing period. IRES does not automatically designations. be presented by Stacy Rinehart from the Kansas Insurance Department. Additional details will be sent via email to all IRES members soon!

The Regulator® • SUMMER 2017 10 Highlights from the 2017 CDS by Michael Morrissey, CISSP, CISA, AES and AMCM

Nearly 300 members and interested An engaging Commissioners Round • President’s Award | Ken Allen & parties attended this year’s IRES CDS Table discussion featured Commissioner Jim Mealer Doug Ommen (IA), Commissioner Ken and Regulatory Skills Workshop at the • Thomas L. Reents Memorial Schol- Selzer (KS), Commissioner Al Redmer, Omni Providence Hotel, August 13th arship award | John Huh through the 16th. This year’s theme was Jr. (MD), Superintendent Eric Cioppa “Honoring the Past and Embracing the (ME), Acting Director Chlora Lindley- • Award of Distinction | Tom Future,” and it was only fitting to hold Myers (MO), Commissioner John Doak McIntyre IRES 30th Anniversary CDS in one of (OK) and Superintendent Elizabeth • The Al Gross/Jim Long Rookie America’s oldest port cities, Providence, Kelleher Dwyer (RI). At lunch on of the Year Scholarships were Rhode Island, founded in 1637. Sunday’s Tuesday, IRES was excited to announce awarded to Letha Tate, Lori Carlson, Reception featured fine food and great the following IRES award winners: Maureen Belanger and Shugian music from the 60’s to present by the • Al Greer Achievement Award | Guan. group Brother2Brother. Andrea Baytop Looking to the future, remember next Highlights of the Monday and Tuesday • Chartrand Communications Award year’s CDS begins August 12, 2018, in breakout sessions included Long-Term | Pieter Williams San Antonio at the Hyatt Regency on the Care, Wildfire Risks, Big Data, the Cy- beautiful San Antonio Riverwalk. See you • Schrader-Nelson “Article of the bersecurity Model Law and Risk-Focused all there!

Surveillance and other hot topics. Several Year” Publications Award | Kathy sessions addressed the rapidly evolving Donovan View all image health insurance arena and the Afford- https://flic.kr/s/aHsm3mqp4e able Care Act.

A grand thank you to Don Hale for documenting the 2017 CDS in photos.

The Regulator® • SUMMER 2017 11 ‘Zoning In’ By Kathy Donovan, MCM

Northeast Zone from a network provider, or Financial Services, are no longer subject shall make other arrange- to public disclosure. Connecticut ments acceptable to the North Carolina HB 7183, effective Oct. 1, superintendent. 2017, defines “short-term Effective Oct. 1, 2017, HB 466 enacts care policy” as “any group Midwest Zone additional consumer protections con- health insurance policy Kansas cerning pharmacy benefits managers or certificate delivered or (PBMs), including the following: Kansas has joined the list of issued for delivery to any states enacting the Corporate • Pharmacies and pharmacists have resident of this state that is Kathy Donovan Governance Annual Disclo- the right to provide an insured with designed to provide, within sure (CGAD) Act under SB information regarding the amount of the terms and conditions 16, effective Jan. 1, 2018. The first filing the insured’s cost share for a prescrip- of the policy or certificate, benefits on an of the CGAD shall be in 2018. tion drug, and may not be penalized by expense-incurred, indemnity or prepaid PBMs for discussing any information basis for necessary care or treatment of an Kentucky described in this section, or for selling injury, illness or loss of functional capac- Issued July 14, 2017, Bulletin 2017-2 a lower-priced drug to the insured, if ity provided by a certified or licensed clarifies the Kentucky Department of available; health care provider in a setting other than Insurance procedures for insurers to • Prohibits PBMs from contractually an acute care hospital, for a period not report suspected fraudulent insurance prohibiting a pharmacy from offer- exceeding three hundred days.” Addition- acts. Specifically, licensees must submit ing and providing direct and limited ally, this bill establishes form and rate filings fraud reports directly to the Division delivery services to an insured as an requirements, required written disclosure of of Insurance Fraud Investigation “to ancillary pharmacy service. the benefits and limitations of the policy or satisfy the requirement that all insur- certificate and claim provisions. ers, agents, or other persons licensed • Prohibits PBMs from charging, or Maine by the Kentucky DOI are required to attempting to collect from, an insured report any and all suspected fraudulent a co-payment that exceeds the total HP 3488 24-A, effective Jan. 1, 2018, insurance acts. No exemption or alterna- charges submitted by the network defines “surprise bill” and establishes re- tive reporting procedure is authorized pharmacy; and quirements including: under Kentucky law.” Effective Aug. 1, • Specifies that any contract between a • A carrier shall require an enrollee to pay 2017, the Fraud Division will no longer PBM and an insurer, for the provision only the applicable coinsurance, copay- receive submissions from the NAIC of a network to deliver health care ment, deductible or other out-of-pocket Online Fraud Reporting System or other services, must be made available for expense that would be imposed for health intermediaries. review by the DOI. care services if the services were ren- Southeast Zone dered by a network provider; South Carolina Florida • A carrier shall reimburse the out-of-net- Effective Jan. 1, 2018, HB 3488 enacts work provider or enrollee, as applicable, HB 1007, which includes various ef- new sections in the South Carolina for health care services rendered at the fective dates, revises requirements Insurance Code that allow an insurer average network rate under the enrollee’s applicable to an insurer’s designated to deliver, store, or present evidence of health care plan as payment in full, unless anti-fraud unit or division, including insurance coverage by electronic means. the carrier and out-of-network provider the content of anti-fraud plans, report- New requirements include certain condi- agree otherwise; and ing and training. Additionally, a related tions that must be met in order for a bill, HB 1009 effective June 26, 2017 notice or document to be delivered by • Notwithstanding paragraph B, if a carrier provides that corporate anti-fraud plans, electronic means, as well as prohibited has an inadequate network, as deter- including the description of anti-fraud adverse actions in that no insurer may mined by the superintendent, the carrier education and training and the descrip- cancel, refuse to issue, or refuse to renew shall ensure that the enrollee obtains the tion of its anti-fraud investigative unit a policy because the applicant or insured covered service at no greater cost to the rationale for the level of staffing and re- enrollee than if the service were obtained sources it provides to the Department of

The Regulator® • SUMMER 2017 12 refuses to agree to receive mailings elec- Bulletin 2017-4, issued June 29, 2017, provisions is a definition of “material tronically. Additionally, a hardcopy of a provides clarification and guidance on change” as being a change to a policy notice of cancellation, notice of non- “Coverage for Marijuana Items and that, with respect to a prior or existing renewal, or notice of termination must Activities.” The Division of Financial policy: (1) reduces coverage; (2) changes be delivered by first-class mail, postage Regulation’s Bulletin includes the follow- conditions of coverage; or (3) changes prepaid, to the last known mailing ing regarding implementation dates: In the duties of the insured. It further address of a party if the insurer knows order to exclude loss, damage, or liability provides that, notwithstanding Section that the notice of cancellation, notice associated with marijuana items and 551.103 of the Texas Insurance Code, a of non-renewal, or notice of termina- marijuana activities: change to a policy provision on renewal tion sent by electronic means was not is not a nonrenewal or cancellation under • Policies issued or renewed 90 days received by the party. this subchapter if the insurer provides after the issuance of this bulletin must the insured with written notice of any Western Zone contain language in the policy or be material change in each form of the accompanied by a notice to the insured Hawaii policy offered to the insured on renewal explicitly stating the extent to which from the form of the policy held im- Effective July 1, 2017, SB 953 provides marijuana items and activities are mediately before renewal. This notice that upon settlement of “a total loss excluded. motor vehicle damage liability claim with must: (1) appear in a conspicuous place • Policies issued or renewed 12 months a third-party claimant, the insurer shall in the notice of renewal; (2) clearly indi- after the issuance of this bulletin must pay the applicable general excise tax and cate each material change to the policy contain language in the policy explicitly certificate of ownership fee.” The bill being made on renewal; (3) be written stating the extent to which marijuana further includes a provision that payment in plain language; and (4) be provided to items & activities are excluded. is not required if the third-party claim- the insured not later than the 30th day ant cannot substantiate the purchase Texas before the renewal date. and the payment of the general excise Kathy Donovan is Senior Compliance Counsel, Applying only to an insurance policy tax and certificate of ownership fee by Insurance with Wolters Kluwer Financial that is delivered, issued for delivery, or Services. Kathy has more than two decades of submitting to the insurer appropriate renewed on or after Jan. 1, 2018, SB experience in insurance compliance. Her expert documentation within 33 days after the commentary on legal and regulatory issues 417 sets forth new requirements per- receipt of settlement. affecting the insurance industry is widely taining to notice to policyholders of published and she is a regular presenter at Oregon certain changes to property and casualty various industry events. insurance policies. Included in these

Tribute to Dudley Ewen | By Tanya Sherman and Dennis Shoop It is with great sorrow that we inform you our dear friend Dudley B. Ewen III has passed away. He led a valiant battle against cancer, but passed in his home surrounded by family on Sunday, August 20, 2017. Dudley was the Chief Examiner of Market Conduct for the Compliance and Enforcement Unit at the Maryland Insurance Administration, where he worked for 32 years. He was a founding member of the Insurance Regulatory Examiners Society (IRES), and also served on the Board of Directors. He proudly received the Paul DeAngelo Teaching Award from the IRES Foundation in 2006. You can’t really mention Market Conduct or Market Regulation without thinking of Dudley. As mentioned above, he was a founding member of IRES, but he was also one of the members on the NAIC committees that helped create the Market Conduct Examination Handbook, now the Market Regulation Handbook. For many, Dudley was one of the first people they met at NAIC/IRES meetings. He had an infectious smile, an incredibly opti- mistic outlook and magnetic personality. His comedic timing was always something to watch during meetings as he would often go back to page 1 after hours of discussion. For that, he was also nicknamed “The Anchor.” In keeping with the marine theme, regardless of the time of year or the weather, he was always found to be sporting deck shoes, no socks, ever. He loved the ocean and often referenced his vacation getaway on the Outer Banks as going to his Pink Double Wide. If you were his friend, you felt like you were one of his best friends. He always took the time to be kind, listen and make a joke to lighten the mood. Dudley, you will be missed, but we will do our best to uphold your legacy, finding humor wherever it may be. He is sitting in heaven awaiting all of us to join him. Rest in peace our cherished friend.

The Regulator® • SUMMER 2017 13 New Members New Designees Welcome! Congratulations! The following members have joined The following members have received their Accredited Insurance Examiner (AIE®), IRES since the last issue of The Regula- Advanced Market Conduct Management (AMCM®), Certified Insurance Examiner tor®. Visit the online member directory to (CIE®), Certified Insurance Consumer Service Representative (CICSR®), or Market learn more about them—and please join Conduct Management (MCM®) designation since the last issue of The Regulator®. us in welcoming them! Please join us in congratulating them!

GENERAL MEMBERS AIE® CICSR® • Kevin Amaral • Emmanuel (Manny) Adonis • Sarah Malloy • Brett Bache • Winston Aikens • JoAnn Baldo • Conna Wiese • Christopher (Chris) Cagle • Renee Benard • Sarah Bridendall • Jenifer Christian • Penny Callihan • John Holley • David Dachs • Holly Campbell • Angela Hatchell • D’Anna Feurt • Jennifer Castaldi • Ned Gaines • Segun Daramola • Joseph Funkhouser • Ryan Gillespie • Paul Forese MCM® • Sheryl Hines • Ericka Franzen • Kerry Abbott • Landon Hubbart • Louis Gabriele Jr • Tracey Fuller • David Keleher • Colette Hittner • Anita Edington • Nicholas Illuzzi • Tim Kelley • Penny Schuster • Isabelle Keiser • Shannon Lloyd • Kerri Grannum • Robert McCullough • Scott Martin • Brian Ziroli • Sarah Neil • Desiree Mauller • Brett Lininger • October Nickel • Stacie Parker • Sarah Flem • David Paolantonio • Ralph Romano • Spencer Peacock • Joseph Block • Steve Schelin • Petr Petrik • Sharon Shipp • David Taylor • Joseph Rapczak • Tia Hammond • Izabel Scovino • Marcus Rosser CIE® • Nancy Shimer • Denise Banks • Jason Nemes • Sharill Silverio • Judah Katz • Bryan Wachter • Jamaca Mitchell • Joseph Torti • Connie Nowland • Erika Kottenmeier INDIVIDUAL SUSTAINING • Sheri Marston • Veronica Morales MEMBERS • Bradley Neff • Kathy Forno • Laurie Clark • Desiree Mauller • Joshua Van Drei • Stephen Geist • Winston Aikens • Katherine Harkins • Heather Gmyrek • Sarah Bridendall • Adam Wheeler • Laurie Lewis • Ned Gaines • Susan Kalmus FIRM SUSTAINING • Shannon Lloyd • Carolyn Whitaker MEMBERS • Justin Durrance • Michael Kreiter • Ryan Gillespie

The Regulator® • SUMMER 2017 14 The professional society committed to excellence in insurance regulation. Your network of knowledge for insurance regulation. Editor’s Corner The Regulator® By Stephanie Duchene, MCM Copyright 2017 Insurance Regulatory Examiners Society. All rights e hope you have enjoyed this reserved. Contents may not be reproduced without permission. ® Opinions expressed by authors are their own, and do not issue of The Regulator and the necessarily reflect the policies or opinions of IRES. W2017 IRES CDS in Providence Content submissions: go-ires.org/news/the-regulator/submit-content this month! If you were not able to attend Editorial staff:[email protected] you can feel like you were there with Michael Advertising: [email protected] Morrissey’s highlights article and pictures Business office: go-ires.org/contact-us courtesy of Don Hale. Congratulations to Editorial Staff our four Rookie of the Year Scholarship Stephanie Duchene, Editor Stephanie Duchene Laura Meath, Layout Editor Winners, Letha Tate, Lori Carlson, Maureen Belanger, Shuqian Guan; the Chartrand IRES Publications and Public Relations Committee Parker Stevens, CIE, AMCM, Chair Communications Award winner, Pieter Williams; the Al Greer Achieve- Kallie Somme, MCM, Vice Chair ment Award winner, Andrea Baytop; the Schrader-Nelson Publications Members: Lisa Brandt, Stephanie Duchene, Rosemarie Halle, Award winner, Kathy Donovan; the Thomas L. Reents Memorial Schol- Jo LeDuc, Michael Morrissey, Stacy Rinehart, Paula Palozzi arship winner, John Huh; the President’s Awards winners Ken Allen and Jim Mealer and the Award of Distinction winner Tom McIntyre. All well Summer 2017 Contributors deserving honorees! Don Koch, CIE, AMCM Michael Morrissey, CISSP, CISA, AES and AMCM In this issue, Don Koch explains a proposal currently before the NAIC Kenneth Allen, AIE, California, President Tom McIntyre, CIE, CICSR, AMCM Market Conduct Examination Standards (D) Working Group to add Pieter Williams, MCM a chapter to the NAIC’s Market Regulation Handbook which would Kathy Donovan, MCM review the qualification of the management structure of a company Jo LeDuc, CIE, MCM, CPCU, AIRC, AIC, API, Stephanie Duchene, MCM and its ability to provide effective compliance on a current and prospec- tive timeframe. Stay tuned for Part 2 which will be featured in our Fall issue. Jo LeDuc provides us with a wonderful look back at the 30 year history of our great IRES organization. Holly Blanchard begins a series featuring IRES’ state chairs and this issue we get to know Laura Klanian from Virginia. As always, Kathy Donovan keeps us Zoned In on recent IRES Board of Directors regulatory developments around the country. As we thank and say good bye to Tom McIntyre who served us so well Executive Committee & Officers Kenneth Allen, AIE, California, President as President this past year, we also extend a hearty welcome to the new Martha Long, CIE, MCM, Missouri, President Elect IRES President Ken Allen. Thank you for your service! Tracy Biehn, MCM, North Carolina, Vice President LeAnn Crow, CICSR, AMCM, Kansas, Treasurer Please let me know if you have any feedback on this issue, or idea for Randy Helder, AIE, NAIC, Secretary upcoming issues. It’s your organization: make sure your voice is heard - Tom McIntyre, CI, AMCM, CICSR, Unaffiliated, Past President ® Pieter Williams, MCM, Unaffiliated, Member At-Large right here in The Regulator ! Kallie Somme, MCM, Louisiana, Member At-Large Stephanie Duchene is a partner in the Insurance Regulatory group of Dentons Lisa Brandt, MCM, AIE, CICSR, Wisconsin, Member At-Large US, LLP. Stephanie consults and advises clients on a variety of insurance regulatory compliance issues, including market conduct examinations (multi- Directors Maureen Belanger MCM, New Hampshire At-Large Board state examinations and investigations), sales practices compliance, defense Donald Hale, AIE, MCM, Alaska At-Large Board of enforcement actions, licensing, regulatory approvals, receivership and Cynthia Amann, AMCM, Missouri liquidation, electronic commerce and online advertising, agent and broker issues Sam Binnun, MCM, Unaffiliated and transactional matters (including acquisition, merger and demutualization), Holly Blanchard, AIE, MCM, Unaffiliated as well as product and market development issues. She represents national Ben Darnell, MCM, Unaffiliated insurers, insurance-related service companies, brokers and state governments. Uma Dua, MCM, Unaffiliated Mike Hailer, CIE, AMCM, IRES Foundation Angela Hatchell, CICSR, North Carolina Mark Hooker, CIE, AMCM, CICSR, West Virginia NEXT ISSUE Jenny Jeffers, Unaffiliated ® Jo LeDuc, CIE, MCM, Wisconsin We encourage our readers to contribute to The Regulator . Jim Mealer, CIE, MCM, Missouri In addition to completed articles, we welcome suggested Mary Nugent, CIE, AMCM, Federal topics and/or authors. Submit your content and suggestions at Doug Ommen, MCM, Iowa go-ires.org/news/the-regulator/submit-content. Paula Pallozzi, Rhode Island Mark Plesha, AIE, MCM, Unaffiliated – Your staff at The Regulator® Lori Ruggiero, CIE, MCM, Unaffiliated 15