Indianapolis, IN: An important factor in insurance companies' ability to remain competitive in an evolving financial services marketplace, is to have uniform laws across state lines. What do you envision as the best approach to ensure a uniform set of rules for this state-regulated industry?

Governor O'Bannon: The National Association of Insurance Commissioners has an aggressive agenda to achieve uniformity among the states and Indiana has been very active in those efforts. Several approaches to uniformity are being explored. My insurance commissioner, Sally McCarty, is participating in these efforts.

Lafayette, IN: This year we were unsuccessful in passing legislation to reduce premium taxes for insurance companies like our neighboring states have.
What are you plans to help secure passage of this critical legislation in 2001?

Governor O'Bannon: The reduction of the premium tax was a part of my legislative program this year. I favor the reduction of the premium tax and will encourage the override of my veto at the next legislative day of session. My veto was for reasons of fiscal responsibility at the conclusion of the legislative session in March. I believe we are in good fiscal condition to put in effect the reduction of the premium tax. It is our policy to make Indiana a very competitive insurance state and the reduction of the premium tax will help grow the industry in this state.

Fishers: What kinds of things can the state do to help encourage people to protect their retirement income from the costs of things like a long-term or catastrophic illness?

Governor O'Bannon: The Indiana Long-Term Care Partnership Program encourages people of all ages to prepare to meet long term cost of care in their later years. We are actively marketing the program and appreciate the cooperation of the insurance companies in this program.

South Bend, IN: Technology allows us to access a lot of information. Do you agree that any role of government oversight should be one that strikes a proper balance between protecting personal information and allowing business to access information necessary to conduct routine business? Do you believe that, as a whole, government is moving in the right direction on this?

Governor O'Bannon: The National Association of Insurance Commissioners is also working to develop a model rule that addresses the privacy needs of consumers while recognizing the needs of the industry. Indiana is active in this effort and will work with all parties to achieve the proper balance. It appears that insurance regulators are moving in the right direction on this issue.

Fort Wayne, Indiana: Would you consider other initiatives regarding long-term care which would encourage more Hoosiers to buy long term care insurance thus reducing the impact on Medicaid expenditures by the state?

Governor O'Bannon: Yes, we would consider any new initiatives that would encourage people, especially people who have not yet reached retirement age to purchase long term care insurance, for example, encouraging employers to offer long term care insurance as part of their group plans.

Fort Wayne, Indiana: What are some of your suggested initiatives which will make the insurance industry more attracted to Indiana?

Governor O'Bannon: We continue to make Indiana a very attractive place for insurance companies to do business. Indiana has a history of having a strong insurance industry. Our insurance task force reviewed issues important to the insurance industry and we have been moving forward on such issues as reduction of premium tax, making the mutual holding company option avalable to Indiana domestic companies, updating the demutualization law, and assuring that the department of insurance is consistently striving to improve its service to the industry.

Fort Wayne, IN: How would you address a situation where Indiana deviates from a uniform approach to insurance regulation?

Governor O'Bannon: We strongly support a uniform approach to insurance regulation. If there is any deviation we would investigate the causes and develop a plan to bring it into uniformity. If legislative action is necessary we would propose corrective measures for enactment.

Terre Haute, IN: This question deals with legal reform. As you know, damage awards in class action lawsuits often result in small payouts to plaintiffs and large payouts for attorneys' fees. How can this inequity be resolved?

Governor O'Bannon: All lawsuits should result in fair and adequate awards to the plaintiff when justified. But, in our judicial system the contract between the plaintiff and his or her attorney determines their agreement of payment for services.

Moderator: Closing question for Governor O'Bannon: The life insurance industry employs some 23,000 Indiana residents. What would you like to say to them, and any other citizens who may be participating in this discussion, concerning why you want to continue to represent them as governor of the Hoosier state?

Governor O'Bannon: The insurance companies of Indiana have constituted a very valuable industry for our state. I applaud its leadership and contributions to the economy and well being of our state. I pledge that I will continue to work closely with this industry for the betterment and growth of this valuable sector of Indiana's economy. And I thank the insurance leaders for allowing me to address you today.

Moderator: Our thanks to Governor O'Bannon, ACLI and all who participated.