LETTERS TO THE EDITOR

NAIC Involvement

In Studies ClarifiedA recent Journal of Commerce article incorrectly reported that the National Association of Insurance Commissioners had endorsed an Insurance Services Office claims study, and it also failed to make an important distinction between two different ISO studies.

In December 1986, the ISO advised the NAIC that it had initiated two claims projects. The first of these projects, known as the "Claims Evaluation Project," was already under way. It was conducted by the public-policy and management consulting firm of Hamilton, Rabinovitz and Alschuler Inc. This project was designed to study the effect of tort law changes enacted in 15 states and proposed in nine other on a set of representative, hypothetical claim files. The NAIC did not review or endorse this project.

The second of the projects announced by ISO in December, called the ''Claim File Data Analysis," will examine actual claims files in 27 states involving 24 insurers. Approximately 12,000 actual claim files will be reviewed, and the project will be completed within 18 to 24months. The NAIC advised ISO that it wishes to review the study design and involve government agencies and public organizations in this review. Subsequently, the NAIC invited 13 agencies and organizations representing federal, state and consumer interests, as well as the legal profession to review the project. The NAIC met with these groups in January 1987 in Washington, D.C. Further, the NAIC established a sub-group to work with ISO to ensure that the input from these organizations was reflected in the final project design and survey forms. This work was recently completed and ISO is now proceeding with this survey.

While the NAIC participated in providing governmental and consumer input to this study, the NAIC did not endorse the study. The NAIC's intent was to ensure that the broadest possible range of public interest would be reflected in this study. Further, to ensure the credibility of the data coming out of this study, the Illinois Department has retained the accounting firm of Ernst & Whinney to oversee the data collection process.

Tim Brown Director of Information Services National Association of Insurance Commissioners Kansas City, Mo.

Bofors Editorial

Factually Incorrect

In the editorial entitled "Bofors Abroad" (May 5), you mentioned that the government of Sweden is launching an investigation into the affair and

pressure is mounting on Indian Prime Minister Rajiv Gandhi to follow suit.

I write simply to point out that this is factually incorrect. It is the government of India, which has been pressing the Swedish government, and Bofors, to institute an investigation.

Also, the Swedish state-supported radio has informed Indian authorities that did not state that Indian officials were involved. This allegation was extraneously added by a foreign news agency when reporting the Swedish radio broadcast.

S.S. Mukherjee Counselor (Press) Embassy of India Washington, D.C.

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