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18th of May 2012

NAIC replaced federal regulator in GAO report

Vicky Beckett 25/01/2012

The GAO allowed the NAIC to comment on their report regarding risk retention groups as the industry has no federal regulator.
 
Some members of the risk retention group (RRG) community were concerned this would put a bias on the report.
 
However, Alicia Cackley, director of financial markets and community investment of the US Government Accountability Office, said: “As required by generally accepted government auditing standards, GAO provides responsible parties with an opportunity to review and comment on a draft of a report before it is issued. 
 
“Responsible parties include agency officials and other directly affected parties that have responsibilities for the programs under review. 
 
“In this instance, because the insurance industry has no federal regulator, we sent the draft to the National Association of Insurance Commissioners (NAIC) for comment, as we do for all our insurance reports. 
 
“After receiving agency comments, GAO considers their substance, revises the draft report as appropriate, and indicates in the issued report whether the agency agreed or disagreed with GAO’s findings, conclusions and recommendations.
 
“An agency’s electronic or hard-copy written comments are typically reproduced in an appendix to the issued report.”

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