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Businessweek Archives

Regulators Say


Up Front: REALITY CHECK

REGULATORS SAY

REGULATORS SAY insurance companies and agents can't talk about or advertise the new "risk-based capital" (RBC) scores. With the early-1990s collapse of several carriers in mind, the National Association of Insurance Commissioners came up with RBC ratings for insurers to gauge how risky their assets and business lines are. Saying RBC should only be a regulatory tool, the NAIC devised the gag rule out of fear consumers would be misled.EDITED BY LARRY LIGHT AND JULIE TILSNER


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