In an attempt to spell out how it polices the state’s insurance market, the Maryland Insurance Administration is drafting a new regulation.

Ralph S. Tyler

Speaking at a recent event sponsored by the Independent Insurance Agents of Maryland, the state’s insurance commissioner, Ralph S. Tyler, said his agency has spent the last few months working on the new regulation, consulting with carriers.

“[The regulation] attempts to lay out the procedures we will follow with market regulation activities,” Tyler said. “I think this is an important and good step forward for us and I think it is good for the industry. Some have not expressed [the same thoughts].”

Tyler said it is important for the MIA “to be specific as we can” to lay out the process used by regulators “and the appropriate way to do that is through a regulation.”

Coinciding with Tyler’s actions in Maryland are his actions as the chairman of the Special Accreditation Standards Working Group of the National Association of Insurance Commissioners. That group is developing a new Market Regulation Accreditation Program, establishing uniform criteria for assessing whether states are efficiently and effectively addressing market regulatory issues.

Tyler said the push toward accreditation for market regulation comes after 20 years of having a similar mechanism for financial regulation.

“If that [the NAIC program] moves forward, our office will have clearer definition of legal authority for financial regulation,” he said.

This story originally appeared in the December 2009 print edition of Insurance & Financial Advisor.