What is one key criteria for developing a model law?

The reason that the development of a model law is focused on a minimal national standard is rooted in the need for uniformity and consistency across states in addressing specific issues within the insurance industry. A model law provides a framework that ensures that fundamental principles are upheld, while still allowing for individual states to adopt and modify the law according to their specific needs and circumstances.

This approach facilitates better regulatory coherence, making it easier for insurers to operate across state lines without encountering a patchwork of differing regulations. By establishing a minimal national standard, states can ensure they are meeting fundamental governance requirements while maintaining the flexibility to adapt to local conditions, ultimately promoting an effective and efficient insurance regulatory environment. The idea is to strike a balance between providing a baseline level of protection or regulation and allowing for local adaptation, which is crucial in a system defined by both state and federal law.