Market Surveillance




Created in 1997, one of the goals of the Market Surveillance Division is to educate the insurance industry about newly enacted legislation by conducting reviews and verifying compliance from the part of the industry. The division conducts several types of compliance "reviews." One type of review involves interviewing insurance companies and/or producers regarding their awareness and knowledge of a new law. Another type of review involves sampling a company's files to determine if they are in compliance with a particular provision of a law.

After each review or data call, findings are recorded and the division makes recommendations to the insurance company and/or agent as to the appropriate manner to correct any deficiencies. At the completion of the review, the Market Surveillance Division may develop a fact sheet and make it available to the industry and consumers. Please take a moment to review them.

The Surveillance Division began a transition into market analysis by participating in the Market Conduct Annual Statement Pilot (MCAS) several years ago.  Today, the MCAS continues and is considered a valuable tool to identify general market problems though analysis of company data.  The annual statement helps the Department allocate market conduct resources where they can be most effective.

MCAS Participation Requirements and General Information Link
http://www.naic.org/documents/industry_mcas_2008ParticipationGeneralInfo.pdf 

Helpful Hints Link
http://www.naic.org/documents/industry_mcas_2008_helpful_hints.pdf 

Frequently Asked Questions Link
http://www.naic.org/documents/industry_mcas_faq.pdf 

How companies are chosen for the Market Conduct Annual Statement Link
http://www.naic.org/documents/industry_mcas_call_letter.pdf 

Market Conduct Annual Statement Contact Form Link
questions can be emailed to: mcas@naic.org

Certificate of Compliance in 2008 link
http://www.naic.org/documents/industry_mcas_certificate_of_compliance.doc 

Market Conduct Annual Statement
http://www.naic.org/industry_market_conduct_statement.htm 

The goal of the project is to provide a uniform system of collecting market related information to serve the needs of all participating states. It promotes uniform analysis by applying consistent measurements and comparisons between companies, which allows all companies to be compared on an equal basis.  In 2004, NAIC membership voted to make the MCAS a permanent project.

Database Information - Unlike financial statements, the Life/Annuity and Property/Casualty Market Conduct Annual Statements are not actual forms, but Microsoft Access databases. The MCAS databases are compatible with Microsoft Access 2000 and Microsoft Access XP Service Pack 1. An Access runtime version of each database is available for companies that do not have Microsoft Access 2000.

Insurance Company Contact Form - Participating states request MCAS information by a call letter sent by the NAIC to each company. Sent during the first week of December, the addressee of any given call letter is the first contact person designated on the jurat page of the company’s Financial Annual Statement. Every company required to participate in the MCAS project must provide a contact person responsible for the overall project. Companies must submit the required contact information on the Market Conduct Annual Statement Insurance Company Contact Form. A separate contact form must be completed for each company required to file a MCAS. Do not complete one form for an entire group. If the contact information for a company changes during the project, please complete and submit a new contact form. The NAIC provides access to the contact information to all participating states.

Company Report Cards - To assist participating companies in gaining a better understanding of where they fit in the insurance marketplace, each company will receive a “report card” letter from each state where they filed the MCAS. The letter includes information about the company ratios in relation to average industry ratios and enables companies to use this information in identifying areas where opportunities may exist for the company to improve its performance. Company report cards are sent to the designated contact for the overall MCAS project.

Market Conduct Examinations - It is important to note that even if a company falls outside of the norm, it does not mean a market conduct examination will be called on the company. Alternatively, participation in the MCAS is no guarantee that a market conduct examination will not occur.

Market Conduct Annual Statement Procedures - The adopted procedures establish the policies and procedures with respect to proposed amendments to the Market Conduct Annual Statement blank and instructions. Additionally, timeframes were established for the dissemination of call letters and report cards.

NAIC Involvement - The NAIC has maintained a minor role in the data collection process. The NAIC staff does not collect or have access to the MCAS data.  The NAIC Staff can answer questions related to the business activities of the Market Conduct Annual Statement (D) Subgroup and provide copies of the Access runtime version of the MCAS. However, NAIC Staff cannot provide clarification regarding data definitions (other than those listed on this webpage), waive filing requirements, extend filing deadlines, or assist with data errors or warnings. Questions of that nature should be sent to the contact person for the appropriate state.

Life/Annuity MCAS
Due to each participating state by June 30.
The Life/Annuity MCAS includes information specific to Life and Annuity lines of business.

Life/Annuity Data Call & Definitions Link
http://www.naic.org/documents/industry_mcas_LA_data_call_2008.pdf

Life/Annuity Database Screen Shots Link
http://www.naic.org/documents/industry_mcas_LA_DB_Manual_Instructions_2008.pdf

Life/Annuity Database Import Data Overview Link
http://www.naic.org/documents/industry_mcas_LAimport2008.pdf

Property/Casualty MCAS
Due to each participating state by April 30.
The Property/Casualty MCAS includes information specific to the Private Passenger Auto and Homeowners lines of business.

Private Passenger Auto MCAS Data Call & Definitions Link
http://www.naic.org/documents/industry_mcas_PC_priv_pass_data_call_2008_clarifications.pdf

Homeowners MCAS Data Call & Definitions Link
http://www.naic.org/documents/industry_mcas_PC_homeowners_data_call_2008_clarifications.pdf

Property/Casualty Database Import Data Overview Link
http://www.naic.org/documents/industry_mcas_PCimport2008.pdf

Educational Fact Sheets:

Act 68 Prompt Payment Data Call Report
ACT 83 of 2005: Health Insurance Coverage for Soldiers Returning from Deployment
Act 154 of 1996: Life Insurance Marketing Practices Act
Chapter 89a, Title 31- Long-Term Care Insurance Model Regulation 
Chapter 146a - Privacy of Consumer Finanacial Information 
Chapter 146b - Privacy of Consumer Health Information   
Chapter 146c - Standards for Safeguarding Customer Information    
Health Insurance Portability and Accountability Act (HIPAA) 
HIPAA Transaction and Code Set Standards 
Market Surveillance Internet Oversight