A Radnor, Pa., insurer is participating in a new pilot project by the National Association of Insurance Commissioners to improve the efficiency of national licensing for firms to enter insurance markets.

The NAIC said this state-based collaboration addresses the need of the marketplace while ensuring local consumer protection at the same time.  Through the new pilot project, the NAIC seeks to streamline state-specific application requirements, including the need for hard copies of forms and supplemental information involved in the Uniform Certificate of Authority Application (UCAA).

The UCAA provides a standardized application process for insurers seeking to conduct business in multiple states.

Roger Sevigny

Roger Sevigny, the NAIC’s president, said state regulators use these pilot projects to both provide feedback on the licensing process and help identify ways to make the process more efficient and effective.

“The expedited licensing pilot project provides the necessary steps toward promoting and maintaining competitive, healthy markets,” Sevigny, who is also the New Hampshire insurance commissioner, said in a statement. “Through this successful program, the NAIC will continue to assist eligible insurance companies by facilitating their swift foray into the marketplace during this critical time of need.”

Rador, Pa.-based Essent Guaranty Inc., licensed in Pennsylvania as a mortgage insurer, was recently approved as a pilot project UCAA electronic application, providing feedback on the process. The NAIC’s National Treatment and Coordination Working Group then considers the matter and votes on whether to accept an application as a pilot project.

By participating in the UCAA process, Essent anticipates it will become a licensed mortgage insurance company throughout the U.S. in the near future, according to the company.

Mark A Casale, president and CEO of Essent, said approvals of both the Pennsylvania Insurance Department and the NAIC “are critical milestones in the development of Essent’s mortgage insurance business.”

“We look forward to writing and servicing mortgage insurance policies once we receive the remaining necessary licensing and approvals,” Casale said.

Joel Ario, Pennsylvania’s insurance commissioner, said “providing consumers with an array of viable options for their insurance needs is a priority for state regulators.”

“We are pleased that we were able to complete our review of Essent and issue our approval in a time of real need in the mortgage market,” Ario said. “In addition to assisting residents in Pennsylvania, the NAIC’s expedited licensing project will enable Essent to serve potential home buyers nationwide.”