New Mexico: Department Proposes Rules to Adopt Changes to Holding Company Act, Financial Reporting

July 21, 2020 The Office of the Superintendent of Insurance has proposed two sets of rules to implement changes to National Association of Insurance Commissioners’ model acts. The first set of rules would revise New Mexico’s current rules implementing... Read more

Property/Casualty Committee Receives Testimony From Industry, Consumer Groups on Regulator Response to COVID-19

June 18, 2020 The NAIC Property and Casualty Insurance (C) Committee met by conference call on June 10. As reflected on its agenda, the meeting covered several topics including risk retention groups, the private passenger auto insurance study, and... Read more

Regulators Clash Over How to Account for Premium Refunds

June 18, 2020 The Statutory Accounting Principles (E) Working Group met on June 15 to vote on a proposal to determine how insurance companies are to account for premium refunds issued in response to COVID-19. Ultimately the working group determined that all... Read more

Casualty Actuarial and Statistical Task Force Releases Final Exposure of Predictive Modeling White Paper

June 18, 2020 The NAIC Casualty Actuarial and Statistical (C) Task Force exposed on June 12 for final comments its latest draft of a white paper on predictive analytics and modeling used in property/casualty homeowner and... Read more

Holding Company Changes Contemplated, New Exposure Released for Comment

June 18, 2020 The Group Capital Calculation Working Group exposed for comment amendments to the NAIC Insurance Holding Company System Regulatory Act (#440) for the purpose of starting the implementation process for the GCC, a tool being developed for... Read more

Artificial Intelligence Working Group Concluding Its Work to Refine Principles Regarding Applicability to Insurance Industry

June 18, 2020 The NAIC Artificial Intelligence Working Group exposed on June 15 a version of its draft principles concerning artificial intelligence usage by insurers. The direction of the document changed significantly on the last call held on... Read more

Alternative Accounting Methods Still Being Considered for Premium Refunds

May 22, 2020 The Statutory Accounting Principles (E) Working Group continues to propose and implement accounting interpretations related to COVID-19. An issue of great interest to NAMIC members relates to guidance on how to account for premium refunds issued in... Read more

NAIC Issues Business Interruption COVID-19 Data Call

May 22, 2020 The NAIC distributed a data call letter on May 11 to property/casualty insurers in 48 states, the District of Columbia, and the U.S. Virgin Islands, requesting data on business interruption coverage written in 2019 or 2020. The data call is... Read more

Next Steps Revealed on Group Capital Calculation Tool

May 22, 2020 Development around the NAIC Group Capital Calculation, a regulatory tool to be used to consider the aggregated regulatory capital held by an insurance group, took two major steps this week. First, the NAIC exposed for a 60-day comment period... Read more

Casualty Actuarial and Statistical Task Force Delays Final Exposure of Predictive Modeling White Paper

May 22, 2020 The NAIC Casualty Actuarial and Statistical (C) Task Force failed to expose for comment its expected near-final draft of a white paper on predictive analytics and modeling due to drafting errors. The task force held a previously scheduled call on... Read more

Antifraud Task Force Meets to Discuss Potential Fraud Issues Related to COVID-19

May 22, 2020 The Antifraud (D) Task Force held a call on May 20. As reflected on its agenda, the purpose was "to discuss the effects of COVID-19 as it relates to insurance fraud" and to "hear updates from state insurance departments as well as other... Read more

Artificial Intelligence Working Group Continues to Refine Principles Regarding Applicability to Insurance Industry

May 22, 2020 The NAIC Artificial Intelligence (EX) Working Group continues to refine and redraft principles for artificial intelligence usage by the insurance industry. The workstream includes adapting the... Read more

NAIC: NAMIC Sends Letter Regarding Business Interruption Data Call

May 8, 2020 The National Association of Insurance Commissioners released on May 8 a national model data call on business interruption insurance and offered to be the coordinating entity for participating states. Understanding the eventual need for data on... Read more

NAIC Special Report

May 6, 2020 As the world continues to respond to the ongoing COVID-19 pandemic, the insurance industry is steering its way into month three of the ongoing regulatory response of the National Association of Insurance Commissioners and... Read more

Maine: DPFR Adopts NAIC Regulatory Deadline Extension Model Bulletin

April 30, 2020 Bulletin 447, issued on April 29 addresses regulatory flexibility for certain corporate and financial filings and is based largely on the NAIC model bulletin. The Maine Department of Professional and Financial Regulation addresses... Read more

South Carolina: DOI Issues Model NAIC Financial Filing Bulletin

April 28, 2020 The South Carolina Department of Insurance has issued Bulletin 20-05, closely following the NAIC’s proposed model financial and regulatory filing relief bulletin that has already been issued in several other states. The SCDOI addresses the following... Read more

NAIC: Leadership Issues Model Bulletin Encouraging All States to Extend Upcoming Filing Deadlines

April 9, 2020 The chair and vice chair of the Financial Condition (E) Committee, Virginia Insurance Commissioner Scott White and Maine Superintendent of Insurance Eric Cioppa, respectfully, issued a memorandum to all NAIC members requesting all state insurance... Read more

Washington: Supervision of Internationally Active Insurance Groups Bill Signed Into Law

April 2, 2020 SSB 6048, Supervision of Internationally Active Insurance Groups, which was amended at NAMIC’s request to make the bill language match with the National Association of Insurance Commissioners’ model, has been signed into law by Gov. Jay Inslee. Read more

NAIC Suspends Spring National Meeting; New Priority Schedule Forthcoming

March 30, 2020 As the growing COVID-19 heath crisis continues to impact the lives of millions of Americans and as the insurance industry continues to adapt to shifting dynamics, the operational impact on insurance commissioners and their staffs is becoming... Read more

Investment Accounting Proposal Likely Delayed Until 2021 Reporting; Cash Pools to Maintain Current Accounting Treatment

March 30, 2020 The Statutory Accounting Principles (E) Working Group was the only working group to meet and did so via conference call on March 18, a call that experienced many technical difficulties likely contributing to the decision to suspend the remainder of the... Read more

Mid-2020 Time Frame to Adopt Group Capital Calculation Tool in Doubt as NAIC Postpones Working Group Meetings

March 30, 2020 The Group Capital Calculation (E) Working Group was supposed to meet in Phoenix to give a status update on the field-testing exercise that wrapped up in the final months of 2019; however, when the NAIC decided to go virtual with the meetings... Read more

Casualty Actuarial and Statistical Task Force Working on Final Draft of Predictive Modeling White Paper Without Deadline

March 30, 2020 The NAIC Casualty Actuarial and Statistical (C) Task Force continues its work on finalization of a predictive modeling white paper without any stated deadline for final exposure. As NAMIC has discussed, the CASTF body, comprised mainly of... Read more

Privacy Protections (D) Working Group Regulator-Only Efforts Remain Unseen

March 30, 2020 On its first call of the year held in mid-February, the Privacy Protections (D) Working Group indicated that it would be going into regulator-only mode for a while and would prepare a key issues document that would be circulated for the Spring National... Read more

Anti-Rebating Modernization Efforts Stalled by COVID-19

March 30, 2020 The NAIC Innovation and Technology (EX) Task Force was expected to further explore anti-rebating modernization and amendments to the NAIC Model Unfair Trade Practices Act at the spring meeting in Phoenix. After the meeting was cancelled due to COVID-19... Read more

NAIC Big Data Working Group Continues to Explore Large Data Sets Without Specified Direction

March 30, 2020 The last meeting of the NAIC Big Data Working Group in Austin in 2019 revealed the continuing work of the group and attempts to ascertain where it may all be leading. Due to COVID-19, attempts to meet in Phoenix and via teleconferencing have been... Read more

Review of OECD Principles for Artificial Intelligence Usage by Insurers Have Stalled Amid COVID-19

March 30, 2020 The NAIC Artificial Intelligence (EX) Working Group, which is a subgroup of the Innovation and Technology (EX) Task Force, is currently contemplating adopting draft principles for insurer artificial intelligence usage... Read more

International Insurance Relations Committee Continue Its Work on International Association of Insurance Supervisor’s Various Projects

March 30, 2020 The International Insurance Relations (G) Committee continues its work on the International Association of Insurance Supervisors implementations and were scheduled to discuss many relevant topics in Phoenix before the meeting was cancelled due to... Read more

Discussion on ComFrame Gap Analysis Delayed

March 30, 2020 The Group Solvency Issues (E) Working Group was supposed to meet in Phoenix and planning to hold discussions on comments received regarding the NAIC staff analysis and resulting recommendations that address the working group’s request to... Read more

Property and Casualty Committee Ongoing Priorities May Shift

March 30, 2020 As regulators are drawn to COVID-19 priorities, it is unclear whether the focus and charges of the Property and Casualty (C) Committee will continue unchanged for 2020... Read more

Antifraud (D) Groups Getting to Work on Revising Antifraud Plan Guideline

March 30, 2020 Since the last national meeting, the Antifraud Technology (D) Working Group has been engaged on its review of the Antifraud Plan Guideline. It collected comments at the start of the year and have been in the process of considering them... Read more

Delays Continue as Investment RBC Proposal Gets Pushback From State Regulators

March 30, 2020 The Investment Risk-Based Capital (E) Working Group doesn’t meet at national meetings on a regular basis, but when it does, there is typically a development or key update on the status of the project to expand the number of bond designations in the RBC... Read more

TRIA Reauthorization Prompts NAIC Working Group to Issue Updates to Model Bulletin, Policyholder Disclosures

March 30, 2020 The NAIC Terrorism Insurance Implementation (C) Working Group has continued its work on updating various products produced by the group in regard to the unexpected Terrorism Risk and Insurance Act Reauthorization that occurred late last year, nearly a... Read more

Market Conduct Annual Statement Deadline Extended 60 Days for Property, Casualty Line Submissions

March 30, 2020 The NAIC Market Analysis Procedures Working Group held a vote March 23 and agreed to extend Market Conduct Annual Statement submissions by the property/casualty lines for two months, with a new deadline date... Read more

NAIC Readying to Release Private Passenger Auto Availability/Affordability Study

March 30, 2020 Kansas Insurance Commissioner Vicki Schmidt was scheduled to ask the Property-Casualty (C) Committee to consider adopting the Private Passenger Auto Insurance Study authored by NAIC staff over the last five years... Read more

SPECIAL REPORT | COVID-19 Government Affairs Update

March 26, 2020 We are in unprecedented times. NAMIC, therefore, is undertaking an extraordinary level of advocacy on members’ behalf. Policymakers in all spaces are hearing from small businesses fighting for their lives, and NAMIC is rising to the challenge to... Read more

NAIC Cancels Spring National Meeting

March 11, 2020 As of this morning, March 11, the National Association of Insurance Commissioners has announced that it will be cancelling the 2020 Spring National Meeting in Phoenix and instead will hold the meeting in a virtual-only format... Read more

NAIC Allows Registration Fee Transfer Amidst COVID-19

March 10, 2020 NAMIC has conferred with NAIC leadership, and it has confirmed it will allow attendees cancelling travel to transfer their meeting registration fees to the summer meeting. In order to make this change, you... Read more

NAMIC Submits Comment Letter to Group Capital Calculation Working Group Requesting Certain Entities, Groups Be Exempt From GCC

February 20, 2020 The Group Capital Calculation (E) Working Group has been charged with developing a calculation that can help regulators consider the aggregated regulatory capital held by a group based on the aggregation of legal entity capital requirements for both... Read more

NAMIC Comments on Forthcoming Impact Analysis of New RBC Framework for Bonds

February 20, 2020 NAMIC submitted a letter on Feb. 14 to the Capital Adequacy (E) Task Force in support of the NAIC conducting an impact analysis of the RBC formula using the 20 new bond designations against the current factors for designations 1-6. Read more

Mississippi: Insurance Committees Continue Moving Bills Before First Committee Deadline

February 18, 2020 The deadline for requesting general bills at the Mississippi Legislature passed on Feb. 12, and the deadline for introduction of general bills was Feb. 17. The next major deadline is for committees to report general bills originating in... Read more

South Carolina: Insurance Director Feted at Governor’s Mansion, Private Flood Bill Moves Out of Committee

February 4, 2020 The third week of the South Carolina 2020 General Assembly had a nice start with a reception at the governor’s mansion to recognize Insurance Director Ray Famer as he starts his term as president of the National Association of Insurance Commissioners... Read more

NAIC Memo Recommends Changes to Holding Company, Certain Entities Be Exempt from the GCC

January 16, 2020 The Group Capital Calculation (E) Working Group issued a memorandum (Att. 1 – GCC Memo) to the Group Solvency Issues (E) Working Group regarding needed changes to the Insurance... Read more

SAPWG Pauses on Proposed Amendments to SSAP No. 43R, Will Move Forward with Issue Paper

January 16, 2020 The Statutory Accounting Principles (E) Working Group hosted a teleconference Jan. 8 to discuss comments received from industry representatives on a controversial proposal that, if adopted, would... Read more

Capital Adequacy Task Force Exposes New RBC Framework for Bonds

January 16, 2020 The next step to expand the number of bond designations in the property/casualty Risk Based Capital formula from six to 20 categories was formally taken as the CATF exposed for... Read more

Preliminarily Field-Testing Results of NAIC Group Capital Calculation Tool Revealed

December 13, 2019 Attendees of the Group Capital Calculation (E) Working Group meeting on Dec. 7 were among the first to look at preliminary field-testing results of the GCC tool being developed by the working group. NAIC staff has reviewed 31... Read more

NAMIC Presented on Homeowners – Responded to Underinsurance Questions

December 13, 2019 The Property and Casualty (C) Committee dedicated time to hear presentations from a trade panel that included NAMIC. The industry was charged with discussing possible underinsurance challenges and solutions, particularly in the context of... Read more

Private Flood Paper, Data Collection

December 13, 2019 The Catastrophe Insurance (C) Working Group has been preparing a paper, “Considerations for State Insurance Regulators in Building a Private Flood Insurance Market,” with the stated goal of issuing a document outlining the ways in which a... Read more

Casualty Actuarial and Statistical Task Force Discusses Predictive Modeling White Paper

December 13, 2019 The NAIC Casualty Actuarial and Statistical (C) Task Force continued discussing finalization of its work on drafting a predictive modeling white paper at the NAIC Fall Meeting in Austin. The task force exposed a third draft on Oct. 14. Read more

Antifraud (D) Groups Continue Work Assessing Existing Antifraud Plan Guidelines

December 13, 2019 Early in the new year, the Antifraud Technology (D) Working Group expects to determine whether changes should be made to the Antifraud Plan Guideline of April 2011. Read more

New NAIC Privacy Protections Working Group Rolling Up Its Sleeves

December 13, 2019 During this kick-off meeting of the Privacy Protections (D) Working Group, NAIC counsel Jennifer McAdam presented on a number of existing laws and models, including the history and content of the NAIC privacy models and privacy-related... Read more

NAIC Innovation and Technology Task Force Moves Forward With Exploring Anti-Rebating Modernization

December 13, 2019 The NAIC Innovation and Technology (EX) Task Force moved forward with its intention to explore anti-rebating modernization at the fall meeting in Austin. Three significant decisions were made concerning the work of the task force in this regard. Read more

Many Property/Casualty RBC Formula Changes Contemplated, Reinsurance Recoverable Proposal Exposed for Comment

December 13, 2019 There were several discussions and agenda items regarding potential changes to the property/casualty risk-based capital formula including one proposed change to eliminate “unrated authorized reinsurers” and “unrated unauthorized reinsures” as... Read more

Goodwill Accounting Change Adopted, Rolling Short-Term Investment Proposal Modified, Other Potential Changes to Statutory Accounting Discussed

December 13, 2019 The Statutory Accounting Principles (E) Working Group met Dec. 7 to adopt changes to statutory accounting and reporting and to consider several new proposals and re-expose others. Adopted at this national meeting was a change to... Read more

RBC Framework Set to Accommodate Expansion of Bond Factor Categories

August 12, 2019 The Property and Casualty Risk-Based Capital (E) Working Group had a brief discussion regarding the bond pages in the property/casualty RBC formula and adopted an updated framework to accommodate the expansion of the number of bond... Read more

Financial Stability Task Force to Examine Collateralized Loan Obligations

August 12, 2019 The Financial Stability Task Force received a report from Eric Kolchinsky, director, Structured Securities Group at the NAIC’s Security Valuation Office, about collateralized loan obligations. The report detailed the insurance industry’s exposure to... Read more

Antifraud (D) Task Force Discusses Reports From Two National Crime Groups

August 12, 2019 New Mexico’s Insurance Superintendent John Franchini on Aug. 4 chaired the Antifraud (D) Task Force. The group discussed creating an Antifraud Plan Repository as well as the possibility of a more standardized approach to combating fraud across... Read more

Comprehensive Bond Fund Project Gets Green Light From Capital Adequacy Task Force

August 12, 2019 The Capital Adequacy (E) Task Force received a referral from the Valuation of Securities (E) Task Force on a request for assignment of risk-based capital charges for investment funds that predominately hold bonds. In a discussion led by the chair of... Read more

Many Controversial Statutory Accounting Proposals Exposed for Comment

August 12, 2019 As usual, the Statutory Accounting Principles Working Group had a robust meeting agenda when it met on Aug. 3. There were only a few items adopted for statutory accounting purposes, but there were several new and ongoing issues discussed. Read more

NAIC Innovation and Technology Task Force Discusses Anti-Rebating Modernization, Cybersecurity, AI

August 12, 2019 The NAIC Innovation and Technology (EX) Task Force entertained a robust agenda on several matters including anti-rebating laws, cybersecurity, and artificial intelligence when it met in New York at the NAIC Summer Meeting. The task force, chaired by... Read more

Natural Disaster Topics Raised Through Property & Casualty (C) Committee, Its Working Groups

August 12, 2019 There was a strong focus on natural disaster issues at the NAIC meeting in New York at the Property and Casualty (C) Committee and its Working Groups. The parent (C) committee heard a lengthy presentation from United Policymakers regarding... Read more

Property & Casualty (C) Committee, Working Groups Advance Discussion on Wide Variety of Projects

August 12, 2019 As the Property & Casualty (C) Committee, chaired by Rhode Island’s Insurance Superintendent Beth Dwyer, worked through its agenda, the breadth of issues and work products before the group was evident. For example, the committee adopted a... Read more

Casualty Actuarial and Statistical Task Force Discusses Predictive Modeling White Paper Progression, Exposures

August 12, 2019 The NAIC Casualty Actuarial and Statistical (C) Task Force briefly discussed the expected third draft of the predictive model white paper it is drafting. The task force is expected to expose a third draft sometime near Sept. 1. Rich Piazza, the... Read more

Regulators Hear Update on GCC Field-Testing From NAIC Staff, NAMIC; Discuss Confidentiality Protections

August 12, 2019 When the Group Capital Calculation (E) Working Group met on Aug. 3, the working group heard an update from NAIC staff about the progress of field-testing, discussed a memo regarding confidentiality protections with sharing GCC data between states, and... Read more

NAIC: NAMIC Comments on Second Exposure of CASTF Predictive Modeling White Paper

July 2, 2019 NAMIC recently provided comments to the NAIC Casualty Actuarial and Statistical Task Force on its second draft exposure of a predictive modeling white paper concerning regulator review of... Read more

Mississippi: Insurance Department Cybersecurity Web Page Goes Live

July 2, 2019 The Mississippi Insurance Department’s Cybersecurity Report web page on July went live. The site provides pertinent information regarding compliance with... Read more

NAIC Credit for Reinsurance Model Revisions Finally Adopted by Executive-Plenary

June 27, 2019 The NAIC Executive-Plenary, composed of the entire body of state insurance regulators, formally adopted revisions to the NAIC Credit for Reinsurance Model Law (#785) and Regulation (#786) by... Read more

Financial & Regulatory Brief: At the NAIC

June 26, 2019 The Property and Casualty Risk-Based Capital Working Group has proposed a new framework that would modify the bond pages in the property/casualty RBC formula and expand the number... Read more

North Carolina: End of Session Near; DOI Schedules Free Flood Insurance Classes for Public, Agents

June 25, 2019 While the 2019 North Carolina General Assembly is likely to adjourn by mid-July, it’s entirely possible legislators could wrap up just before the July 4 holiday, with plans to continue work only on the state... Read more

Alabama: DOI Issues Cybersecurity Bulletin

June 25, 2019 The Alabama Department of Insurance has issued Bulletin 2019-05, notifying licensees of the recent enactment of the NAIC’s model insurance data security... Read more

Maryland: MIA Issues Form F Drafting Guidance

June 24, 2019 The Maryland Insurance Administration has issued Bulletin 19-06 to provide guidance related to the required information to be reported in a Form... Read more

Texas: CGAD Requirement Enacted, Texas-Only Insurers Exempt

June 19, 2019 Enacted HB 3306 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model... Read more

Hawaii: CGAD Requirement Enacted

June 19, 2019 Enacted SB 1210 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. The bill also includes adoption of the group-wide supervisory... Read more

Mississippi: MID Issues Bulletin on New Cybersecurity Law

June 6, 2019 The Mississippi Insurance Department has issued Bulletin 2019-4 regarding recently enacted SB 2831, the NAIC model Insurance Data Security Act, intended to provide compliance guidance to licensees subject to the law. Read more

Colorado: CGAD Requirement Enacted

June 4, 2019 Enacted HB 1291 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. The bill also includes adoption of the group-wide supervisory language in the NAIC’s model holding company act. Read more

Oregon: NAIC Credit for Reinsurance Model Provisions Enacted

May 29, 2019 Enacted SB 251 amends Oregon law to adopt the most-recent changes to the NAIC’s Credit for Reinsurance model law, MDL 785. Read more

Minnesota: Three NAIC Models Enacted

May 23, 2019 Enacted SF 2313 adopts the provisions of three NAIC model laws: Corporate Governance Annual Disclosure, internal audit, and group-wide... Read more

NAIC CASTF Predictive Modeling White Paper Exposes New Draft

May 23, 2019 The NAIC Casualty Actuarial and Statistical Task Force exposed a second draft of its predictive modeling white paper as a result of a conference call of the task force on May 14. The second exposure is for... Read more

Financial & Regulatory Brief: At the NAIC

May 21, 2019 The NAIC held the annual International Insurance Forum in May. Keynoting the event was U.S. Secretary of Treasury Steven Mnuchin who noted ongoing concerns with the direction of the Insurance Capital Standard at the... Read more

Minnesota: Three NAIC Models Enacted

May 21, 2019 Enacted SF 2313 adopts the provisions of three NAIC model laws: Corporate Governance Annual Disclosure, internal audit, and group-wide... Read more

Georgia: CGAD Filing Requirement Enacted

May 16, 2019 Enacted HB 367 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. Read more

Oklahoma: CGAD Filing Requirement Enacted

May 15, 2019 Enacted HB 2191 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. Read more

North Carolina: Dust Settling After Crossover Deadline

May 14, 2019 After fast and furious activity leading up to the May crossover deadline, the dust is settling at the North Carolina General Assembly. Much of the recent focus was... Read more

Alabama: CGAD Filing Requirement Enacted

May 10, 2019 Enacted SB 52 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. The bill also includes the adoption of the NAIC’s model group-wide supervisory language. Read more

Alabama: NAIC Cybersecurity Model Law Enacted

May 10, 2019 Enacted SB 54 substantially adopts the provisions of NAIC’s Insurance Data Security model law. Read more

Nevada: Insurance Data Security Breach Bill Passes to Assembly

May 7, 2019 SB 21, Insurance Data Security, has been amended and assigned to the Assembly Committee on Commerce and Labor for consideration. No public... Read more

Wildfire Risk Explored for Potential Inclusion in RBC or Ratings Factors

April 17, 2019 The Catastrophe Risk Subgroup heard two presentations about U.S. wildfire risk – one from AIR Worldwide regarding its wildfire model and a second from A.M. Best concerning how it assess wildfire risk within its rating analysis. In 2017, the subgroup... Read more

Statutory Accounting Group Adopts/Proposes Many Revisions to Accounting Practices and Procedures Manual

April 17, 2019 As usual at NAIC national meetings, the Statutory Accounting Principles Working Group was busy adopting changes and proposing new revisions to statutory accounting. In addition, the working group heard several updates from NAIC staff regarding ongoing... Read more

Restructuring Mechanisms Working Group Heard Presentations From Four Stakeholder Groups

April 17, 2019 The NAIC’s newest working group, the Restructuring Mechanisms (E) Working Group, met in-person for the first time on April 6 to hear presentations from several stakeholder groups regarding restructuring statutes and the impact they have on insurance... Read more

Flood Dominated the Property/Casualty Agenda

April 17, 2019 The issue of flood insurance was not only raised at the Catastrophe Insurance (C) Working Group, but also at the parent Property and Casualty Insurance (C) Committee. At the (C) Committee meeting, David Maurstad, chief executive of the National Flood... Read more

Catastrophe Insurance Group Updated on Flood Insurance

April 17, 2019 The Catastrophe Insurance (C) Working Group focused on information gathering at this meeting. It received updates about the National Flood Insurance Program from Brooke Stringer, NAIC’s financial policy and legislative advisor. She spoke about NAIC... Read more

Big Data Working Group Moves Forward With State Ahead Concerning Predictive Modeling Data and Beyond

April 17, 2019 The Big Data Working Group met at the NAIC Spring Meeting in Orlando and continued to discuss a logistical framework at the NAIC to handle and assist states on large data sets and predictive modeling filings. NAMIC has previously commented in... Read more

Risk-Focused Surveillance Working Group Questioned About Motives to ‘Study’ Operational Risk

April 17, 2019 On the agenda for the Risk-Focused Surveillance (E) Working Group was a referral from the Operational Risk (E) Subgroup recommending that other NAIC working groups study and develop regulatory knowledge in the area of operational risk. NAMIC presented... Read more

CASTF Moves Forward With Predictive Modeling White Paper Revisions

April 17, 2019 The NAIC Casualty Actuarial and Statistical (C) Task Force discussed the exposed draft of its Predictive Modeling White Paper at the NAIC Orlando Spring Meeting on April 6. The task force initially exposed the white paper late last year for a period of... Read more

Regulators, Industry Representatives Share Goal of Terrorism Risk Insurance Reauthorization

April 17, 2019 The Terrorism Insurance Implementation (C) Working Group spent time looking at their understanding of the terrorism risk insurance market today and conducting a review of the reauthorization of the Federal Terrorism Risk Insurance Act. Read more

Reinsurance Task Force Discusses Completion of Credit for Reinsurance Model Law and Regulation Revisions

April 17, 2019 The NAIC Reinsurance (E) Task Force reviewed, discussed, and nearly finalized revisions to the Credit for Reinsurance Model Law and Regulation proposed to incorporate provisions of the U.S.-EU Covered Agreement when it met on April 8 during the... Read more

NAIC on Pace to Begin Field-Testing Group Capital Calculation by May 1

April 17, 2019 The Group Capital Calculation (E) Working Group met on April 6 to wrap-up final discussions about the group capital calculation field-testing template and instructions. The working group will hold a conference call soon to officially adopt the... Read more

North Dakota: Governor Signs NAMIC-Endorsed AOB Reform Legislation

April 11, 2019 Gov. Doug Burgum on April 9 signed HB 1219 to protect consumers from the abusive assignment of benefit practices seen in many states. The bill also... Read more

North Dakota: CGAD Filing Requirement Enacted

April 11, 2019 Enacted SB 2076 substantially adopts the provisions of the NAIC's Corporate Governance Annual Disclosure model law, which requires the annual filing of a corporate governance annual disclosure with the state's insurance regulator... Read more

Alabama: 'Hands-Free' Bill Ready for House Floor; DOI Bills Making Progress

April 9, 2019 Alabama House members are ready to take up legislation on the floor that would make it illegal to hold a cell phone while operating a vehicle. HB 6, named "Cici's Law" in memory of teenager Camryn "Cici" Callaway who was killed in a February 2018... Read more

Mississippi: NAIC Cybersecurity Model Law Enacted

April 4, 2019 Enacted SB 2831 substantially adopts the provisions of NAIC's Insurance Data Security model law. Mississippi-licensed member company compliance personnel are strongly encouraged to view NAMIC's July 17, 2018, member's-only webinar "Compliance with... Read more

Wyoming: DOI Adopts NAIC CGAD Regulation

April 4, 2019 The Wyoming Department of Insurance has adopted the NAIC's model Corporate Governance Annual Disclosure regulation. Read more

Utah: NAIC’s CGAD Requirement, Group-Wide Supervisory Language Enacted

April 2, 2019 Enacted HB 55 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. The bill also includes significant adoption of the NAIC’s model group-wide supervisory language. Read more

Mississippi: Session Ends Early

April 1, 2019 The Mississippi Legislature recessed March 29 sine die to end the 2019 session a full week ahead of schedule. Conferees met throughout the week of March 25 to finalize bills in conference, and both the House and Senate saw a great deal of floor... Read more

West Virginia: Group-Wide International Supervision Model Provisions Enacted

March 28, 2019 Enacted HB 2480 adopts the international group-wide supervision provisions of the NAIC’s model holding company act. Read more

West Virginia: Internal Audit, CGAD Models Enacted

March 28, 2019 Enacted HB 2479 substantially adopts the NAIC model laws regarding internal audit functions and the filing of a corporate governance annual disclosure by West Virginia domestic insurers and insurance groups. Read more

Kentucky: CGAD Requirement Enacted

March 28, 2019 Enacted HB 220 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. The bill also includes the adoption of the NAIC’s model group-wide supervisory language. Read more

Florida: OIR Adopts 2017, 2018 NAIC Manuals

March 28, 2019 The Florida Office of Insurance Regulation has adopted several updated National Association of Insurance Commissioners’ handbooks, instructions, practices, and procedures. Read more

Financial & Regulatory Brief: At the NAIC

March 28, 2019 There was a lot of activity in March regarding the development of the group capital calculation. The GCC Working Group held three conference calls in anticipation that the field-testing documents to be used by volunteers and regulators could be adopted... Read more

Mississippi: Data Security Act Passes; Legislature Ready to Adjourn Early

March 26, 2019 The fast pace of the Mississippi General Assembly will likely culminate in an early adjournment on or before March 29. Many bills are now in conference committee, passed by the House and Senate, or signed by the governor. Read more

Alabama: Session Resumes After Hitting ‘Pause’ for Governor’s Gas Tax

March 26, 2019 Alabama’s 2019 legislative session hit “pause” as soon as it began on March 5, with the governor calling for a special session to address a gas tax proposal during her State of the State address. Despite the scheduling change, the Alabama... Read more

Arkansas: Accounting Practices and Procedures Manual Adoption

March 21, 2019 The Arkansas Insurance Department issued Bulletin No. 1-2019 on March 20, 2019, notifying domestic insurers of its intent to adopt the 2019 edition of the NAIC’s Accounting Practices and Procedures Manual. Read more

South Carolina: CGAD, Group-Wide Supervisor NAIC Models Enacted

March 21, 2019 Enacted SB 75 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. The bill also includes the adoption of the NAIC’s model group-wide supervisory language. Read more

Arkansas: Omnibus Bill Enacts CGAD, Amends Other Insurance Laws

March 21, 2019 Included within the insurance omnibus bill, Arkansas has enacted the NAIC’s model Corporate Governance Annual Disclosure Act. The bill also amends various other provisions of Arkansas’ insurance laws. Read more

Mississippi: NAIC Cybersecurity Model Ready for Governor’s Desk

March 21, 2019 The Mississippi Senate on March 20 concurred in House amendments to SB 2831. The bill adheres closely to the NAIC Cybersecurity Model Act but also incorporates language sought by NAMIC during the NAIC model development process that was not included at... Read more

Mississippi: NAIC Corporate Governance Annual Disclosure Model Enacted

March 20, 2019 Enacted HB 324 substantially adopts the provisions of the NAIC’s Corporate Governance Annual Disclosure model law. Read more

Mississippi: Model Internal Audit Function Requirement Enacted

March 20, 2019 Enacted HB 323 adopts the NAIC’s model internal audit function provisions, found in section 15 of MDL 205. Read more

Group-Wide International Supervision Model Provisions Enacted

March 20, 2019 Enacted H 71 adopts the international group-wide supervision provisions of the NAIC’s Model Holding Company Act. Read more

NAIC May Continue to Study Operational Risk in Effort to Validate Capital Charge

March 19, 2019 A referral issued Feb. 26 by the chair of the NAIC’s Operational Risk (E) Subgroup recommends that other NAIC working groups study and develop regulatory knowledge in the area of operational risk. The referral indicates that regulators could benefit... Read more

California; NAIC, FIO Terrorism Risk Insurance Data Calls

March 1, 2019 The Workers’ Compensation Insurance Rating Bureau has issued Bulletin 2019-03, identifying and describing the efforts in which it will be engaged in... Read more

NAIC: Group Capital Calculation Field-Testing Delayed Until Mid-Spring

February 27, 2019 A memo issued on Feb. 22 by the chair of the Group Capital Calculation Working Group indicated that field-testing for the GCC scheduled to start March 1 would be delayed until at least mid-spring. The memo also calls for... Read more

Financial & Regulatory Brief: At the NAIC

February 21, 2019 NAMIC submitted comments to the Group Capital Calculation Working Group on the 2019 field-testing template and instructions that were exposed for comment at the 2018 Fall National Meeting in San Francisco... Read more

Wyoming: Bill Addresses NAIC Accreditation Requirements, Commissioner Authority

February 20, 2019 Enacted HB 19 authorizes the commissioner of insurance to request waivers from the NAIC’s financial accreditation requirements and to engage in rulemaking to satisfy those requirements. Read more

Wyoming: NAIC Group-Wide International Supervision Model Provisions Enacted

February 20, 2019 Enacted HB 16 adopts the international group-wide supervision provisions of the NAIC’s Model Holding Company Act. Read more

District of Columbia: NAIC Model Laws Enacted

February 7, 2019 Via enacted B22-935, the District of Columbia has adopted the provisions of three NAIC model laws pertaining to group-wide supervisory responsibility, credit for reinsurance, and internal audit functions... Read more

NAIC: NAMIC Provides Comments on 2019 Group Capital Calculation Field-Testing Specifications

January 31, 2019 NAMIC recently submitted comments to the NAIC Group Capital Calculation (E) Working Group regarding the 2019 field-testing template and instructions that were exposed for comment at the 2018 Fall National Meeting in San Francisco... Read more

West Virginia: OIC Adopts NAIC Amendments to Credit for Reinsurance Rules

January 24, 2019 The West Virginia Office of the Insurance Commissioner has adopted amendments to 114 CSR 40, West Virginia’s credit for reinsurance rule. The amendments conform the rule to the... Read more

NAIC: NAMIC Provides Comments on Casualty Actuarial and Statistical Task Force’s Predictive Model White Paper

January 23, 2019 NAMIC recently submitted comments on the NAIC Casualty and Actuarial and Statistical Task Force’s Predictive Model White Paper that had been drafted and exposed for comment Nov. 15, 2018, for a 60-day period... Read more

Financial & Regulatory Brief: At the NAIC

January 16, 2019 The NAIC named its 2019 committee chairs and vice chairs. Remaining chair of the Financial Condition (E) Committee is David Altmaier, commissioner, Florida Office of Insurance Regulation... Read more

NAMIC Supports New Accreditation Requirements for Use of Third-Party Financial Analysts

November 28, 2018 The Financial Regulation Standards and Accreditation (F) Committee adopted new accreditation guidance to incorporate oversight requirements when insurance departments utilize a contractor to perform the primary supervisory review of financial... Read more

Examination, Analysis Best Practices to be Shared With All States; Regulators Respond to Question About Incorporation by Reference

November 28, 2018 The Risk- Focused Surveillance Working Group discussed the results of the 2018 sessions of the NAIC peer review project and plans for upcoming sessions in 2019 when it met during the NAIC Fall National Meeting. The peer review project is a program... Read more

Innovation and Technology Task Force Discusses Anti-Rebating Laws, Cybersecurity

November 28, 2018 The Innovation and Technology (EX) Task Force discussed state anti-rebating laws as a potential obstacle to the introduction of innovative product and service enhancements when it met during the NAIC Fall National... Read more

Big Data Working Group Briefed on State Resource Need Survey, Review of Information Sharing Laws

November 28, 2018 NAIC staff members briefed the Big Data (EX) Working Group on two initiatives related to the NAIC's support of states to better understand and process complex filings using large data... Read more

Reinsurance Task Force Adopts Credit for Reinsurance Model Revisions

November 28, 2018 The NAIC Reinsurance (E) Task Force adopted proposed revisions to the Credit for Reinsurance Model Law and the Credit for Reinsurance Model Regulation to incorporate provisions of the U.S.-EU Covered Agreement in its meeting on Nov. 17 during the NAIC... Read more

Predictive Model Review Best Practices White Paper Draft Exposed for Comment

November 28, 2018 The Casualty Actuarial and Statistical (C) Task Force has exposed for public comment a draft white paper on the regulatory review of predictive... Read more

NAMIC Paper Acknowledged at First In-Person Meeting of NAIC Cannabis Working Group

November 28, 2018 NAMIC's recently released public policy paper, "Cannabis: From Criminality to Commercial Enterprise: Understanding the Intersection with Property/Casualty Insurance," was noted with appreciation in the first in-person meeting of the NAIC's Cannabis... Read more

Auto Study Group Disbanded After Setting Plans for Data Analysis and Report

November 28, 2018 The NAIC's Auto Study (C/D) Working Group was disbanded by its parent committees after it finalized plans to complete its planned report analyzing nationwide market data provided by the industry's statistical... Read more

Group Capital Calculation Template, Instructions Exposed for Comment

November 28, 2018 The Group Capital Calculation Working Group received a presentation from NAIC staff that illustrated the construction of the GCC field-testing template and corresponding when it met on Nov. 15 during the NAIC Fall National... Read more

NAMIC Submits Comments to NAIC on Its 2019 Annual Budget

November 7, 2018 The National Association of Insurance Commissioners released its proposed 2019 budget that plans to increase spending by $12 million and increase operating revenues by $1.1 million over the 2018 budget. A majority of the increase in spending is for... Read more

Financial & Regulatory Brief: At the NAIC

October 25, 2018 NAMIC submitted a comment letter to the Investment Risk-Based Capital Working Group on a proposal that would update the bond designation factors included in the property/casualty RBC formula. The IRBCWG has decided to expand the... Read more

Washington: OIC Adopts NAIC Model CGAD Rules

October 17, 2018 The Washington Office of the Insurance Commissioner has adopted final Corporate Governance Annual Disclosure... Read more

NAIC Working Group Adopts New Examination Procedures to Test Insurers Cybersecurity Controls

October 16, 2018 The NAIC's IT Examination Working Group adopted new examination procedures for the Financial Condition Examiners Handbook, including key sections from the NAIC Insurance Data Security Model Law, #668. The changes will be included in the next version... Read more

At the NAIC: NAMIC Working With Trades to Respond to NAIC on GCC; New IT Examination Procedures Exposed for Comment; Maine Superintendent of Insurance Appointed to FSOC

September 20, 2018 NAMIC is working with members and a group of trade associations to offer responses to questions posed by NAIC staff regarding the development of the Group Capital Calculation. The Scope of Group/Non-Insurance Testing memo (Att. 2 – GCC Memo) that was... Read more

At the NAIC: NAMIC Report on NAIC Summer National Meeting

August 23, 2018 NAMIC staff traveled to Boston for the NAIC Summer National Meeting, and while it did not feature much by way of final or momentous decisions, it did offer not just the contemplation of action but material developments in a number of areas... Read more

Massachusetts: NAIC Credit for Reinsurance, Group-Wide International Supervision, CGAD Models Enacted

August 16, 2018 Enacted HB 4732/HB 4868 adopts the NAIC’s Credit for Reinsurance, Holding Company (supervisor of internationally active groups provisions), and Corporate Governance Annual Disclosure model acts. Read more

Accreditation Guidance for Third-Party Analysts Exposed for Comment

August 16, 2018 The Financial Regulation Standards and Accreditation (F) Committee exposed a memo for a 30-day comment period on proposed revisions to the Review Team Guidelines to incorporate when insurance departments utilize a contractor as a primary supervisor of... Read more

Accounting Group Defers Action on Credit Losses, Adopts Tax Reform Measures

August 16, 2018 The Statutory Accounting Principles Working Group adopted five non-substantive revisions and exposed 18 non-substantive and four substantive revisions to statutory accounting during its two-and-one-half hour meeting on Aug. 4. In addition to these... Read more

Climate Change Hears Presentations on Disclosures from International Organizations

August 16, 2018 The Climate Change and Global Warming (C) Working Group heard a presentation from an organization called Principles for Responsible Investment that advocated for a disclosure from insurance companies citing their metrics and targets for climate-related... Read more

NAMIC Cites High Consumer Satisfaction While Questioning Need for Rate Increase Explanations

August 16, 2018 The provision of consumer disclosures explaining the reasons for a large rate increase may best be left to the marketplace as a potential feature to highlight for consumers, NAMIC suggested during a meeting of the NAIC’s Transparency and Readability of... Read more

Model Bulletin to Prohibit Pre-Dispute Mandatory Arbitration Clauses in Personal Lines Adopted

August 16, 2018 The NAIC’s Pre-Dispute Mandatory Arbitration Clauses (D) Working Group and the Market Regulation and Consumer Affairs (D) Committee approved a model bulletin intended to prohibit the use of arbitration, choice of law, and choice of venue clauses in... Read more

NAMIC, Industry Encourage Regulators to Share Examination Best Practices With All States

August 16, 2018 There was a lot of positive discussion among regulators and the industry at the Risk-Focused Surveillance Working Group meeting about ways to improve the NAIC Peer Review Program for both the financial analysis and financial examination functions. In... Read more

NAMIC-Backed Industry Proposal on Group Capital Exposed for Comment – Feedback Requested

August 16, 2018 The Group Capital Calculation Working Group discussed several comment letters received on an updated NAIC staff memorandum related to the scope of the group and treatment of non-insurance entities in the group capital calculation. NAMIC and other... Read more

Reinsurance Task Force Hears From NAMIC, Others on Revisions to Credit for Reinsurance Model Law, Regulation

August 16, 2018 The Reinsurance (E) Task Force discussed proposed revisions to the Credit for Reinsurance Model Law and the Credit for Reinsurance Model Regulation proposed to incorporate provisions of the U.S.-EU Covered Agreement in its meeting on Aug. 6 during the... Read more

Big Data Working Group Updated on Plans to Develop Best Practices for Model Review

August 16, 2018 The Big Data (EX) Working Group heard an update from the Casualty Actuarial and Statistical (C) Task Force on CASTF’s plans to develop best practices and regulatory guidance for the review of complex predictive models when it met in Boston during the... Read more

Auto Study Group Lays Plans for Data Analysis and Report

August 16, 2018 The NAIC’s Auto Study (C/D) Working Group discussed an outline for its planned report analyzing nationwide market data provided by the industry’s statistical agents and heard reports on two analyses performed by the Missouri Insurance Department... Read more

Innovation and Technology TF Adopts Initiatives to Explore Innovation in Regulation

August 16, 2018 The Innovation and Technology (EX) Task Force approved a plan to tackle three new regulatory innovation projects and tapped North Dakota Commissioner Jon Godfread to lead in these efforts. The task force also heard a presentation from the United... Read more

Six-State Insurer Climate Survey Due Aug. 31

July 19, 2018 Insurers with $100 million or more in premiums that are licensed in California, Connecticut, Minnesota, New Mexico, New York, and Washington are again obligated to submit the climate risk disclosure survey by Aug. 31. These companies are required to... Read more

NAIC Panel Seeking Comments on Disclosures for Large Rate Increases

June 28, 2018 As noted in a previous advisory, the NAIC's Transparency and Readability of Consumer Information (C) Working Group is seeking comments on the topic of insurers providing consumer disclosures when they implement large increases for private passenger... Read more

NAIC Panel to Develop Best Practices, Regulatory Guidance for Predictive Model Use in Rating

June 28, 2018 The NAIC's Property and Casualty (C) Committee approved new charges during a June 27 conference call that will likely result in a significant step forward in the regulatory review of predictive models and their use in insurance... Read more

NAIC Panel to Take Comments on Disclosures for Large Rate Increases

May 22, 2018 The NAIC’s Transparency and Readability of Consumer Information (C) Working Group will take comments on the topic of insurers providing consumer disclosures when they implement large increases, with plans to host an in-person discussion on the issue ... Read more

Financial & Regulatory Brief: At the NAIC

May 17, 2018 The NAIC hosted its annual International Insurance Forum May 14-15. Attendees heard from international regulators, European Insurance and Occupation Pensions Authority, Financial Stability Oversight Council, International Association of Insurance ... Read more

Financial & Regulatory Brief: In the World

May 17, 2018 The International Association of Insurance Supervisors has released a draft issues paper related to climate change risk developed in collaboration with the Sustainable Insurance Forum, an organization initially chaired by California Insurance ... Read more

Nebraska: Governor Signs Bill Adopting Latest Revisions to NAIC Model Credit for Reinsurance Law

May 14, 2018 Gov. Pete Ricketts has signed LB 815, adopting the latest revisions to the NAIC's credit for reinsurance model law. The revised model law includes graduated levels of collateral requirements for alien reinsurers, instead of the previously mandatory ... Read more

South Carolina: Governor Signs Bill Enacting NAIC Model Credit for Reinsurance Law

May 10, 2018 Gov. Henry McMaster has signed HB 4656, enacting the NAIC’s revised Credit for Reinsurance model law. When an insurer cedes business to a licensed reinsurer, the cedent is permitted under... Read more

Tennessee: Governor Signs Bill Enacting NAIC Models on Credit for Reinsurance, Group-wide Supervision, CGAD

May 7, 2018 Gov. Bill Haslam has signed HB 1808, which, among other things, enacts the NAIC model credit for reinsurance law, adopts the amendment to the NAIC model holding company act regarding... Read more

Nevada: DOI Adopts Language of NAIC Model CGAD Rule

April 30, 2018 The Nevada Division of Insurance has adopted the NAIC’s model Corporate Governance Annual Disclosure regulation... Read more

South Carolina: NAIC Data Security and Credit for Reinsurance Models Pass

April 23, 2018 The South Carolina Senate on April 18 passed HB 4655, the South Carolina Insurance Data Security Act, and HB 4656, regarding credit for reinsurance. Both bills were top priority items for the Department of Insurance and were based on NAIC model... Read more

Tennessee: NAIC Credit for Reinsurance, Corporate Governance Annual Disclosure Models on the Way to Governor

April 20, 2018 HB 1808, which contains NAIC model act language for Credit for Reinsurance and Corporate Governance Annual Disclosure, passed the Senate on April 19 and is now eligible for the governor's... Read more

Federal & Regulatory Brief: At the NAIC

April 19, 2018 NAMIC State, Federal, and Policy Affairs staff attended the NAIC spring meeting held March 23-27 in Milwaukee. Please view the NAMIC NAIC Review to learn about the latest developments at the... Read more

Property and Casualty Insurance Committee Briefed on Plan to Explore Explanations for Large Rate Increases

April 4, 2018 The chair of the NAIC’s Transparency and Readability of Consumer Information (C) Working Group reported to the Property and Casualty Insurance (C) Committee that it plans to explore the topic of “consumer disclosures regarding the reason or reasons ... Read more

Despite NAMIC Opposition, Arbitration Clause Panel Appears Close to Adopting Model Bulletin

April 4, 2018 The NAIC’s Pre-Dispute Mandatory Arbitration Clauses (D) Working Group seemed poised to vote on and possibly adopt a model bulletin that purports to restrict insurers’ use of arbitration clauses as well as choice of venue and choice of law clauses ... Read more

SAPWG Focuses on Balance Between Accounting, RBC

April 4, 2018 Statutory accounting and risk-based capital together form a unique solvency framework that requires experts from both areas to collaborate on key conceptual matters. Several of these types of issues were discussed, referred, and/or exposed for comment ... Read more

NAIC Approves Expanding to 20 Bond Categories to Calculate RBC

April 4, 2018 The Valuation of Securities Task Force will work with NAIC staff to begin the necessary IT work to expand the number of bond designation categories that are included in the RBC formulas. The technical project – adopted by the Capital Adequacy Task ... Read more

Despite Vote of Three States, Groupwide Supervision to Become Accreditation Standard in 2020

April 4, 2018 The Financial Regulation and Accreditation Standards (F) Committee met to address several accreditation decisions. Most significantly it addressed an issue it had deferred at the Fall National Meeting regarding whether to make the 2014 changes to the ... Read more

Financial Stability Task Force Works With Receivership Task Force on Recovery, Resolution Plans

April 4, 2018 The Financial Stability (EX) Task Force announced at the 2017 summer meeting its intentions to determine if there are gaps in macroprudential data related to large insurance groups. The task force indicated it was looking for aggregate information ... Read more

Big Data Working Group Asks NAIC Leadership to Research Regulator Needs for Complex Model Review Assistance

April 4, 2018 The NAIC’s Big Data (EX) Working Group’s charges include: 1) review current regulatory frameworks used to oversee insurers' use of consumer and non-insurance data, also known as “big data”; 2) facilitate states in their efforts to conduct technical ... Read more

NAMIC Urges NAIC to Focus on Regulatory Efficiency, Organization Role as It Implements Strategic Plan

April 4, 2018 In comments before the NAIC’s Industry Liaison meeting, NAMIC said regulatory efficiency should be emphasized as an important value as the organization implements its “State Ahead” strategic plan over the next three years. As a strong and steady ... Read more

Group Capital Calculation Working Group Notes Intent to Speed Process

April 4, 2018 The Group Capital Calculation Working Group is trying to calculate an aggregated amount of total capital that an insurance group is holding in all its affiliates. This is intended to fend off international pressures to adopt a group capital ... Read more

Reinsurance Task Force Discusses Implementation of the Covered Agreement

April 4, 2018 At the 2018 NAIC Fall Meeting, the Reinsurance Task Force discussed the options for implementing the EU/U.S. Covered Agreement. The Covered Agreement requires reinsurance collateral requirements for European Union reinsurers to be the same as those ... Read more

Arkansas: Department Issues Bulletin Regarding NAIC Accounting Practices and Procedures Manual Updates

March 21, 2018 The Arkansas Department of Insurance has issued Bulletin 2-2018, providing notification to domestic insurers and other entities of the department’s intent to adopt the amendments, revisions, or modifications to the NAIC’s Accounting Practices and ... Read more

NAIC Taking Comments on Draft Bulletin to Restrict Arbitration, Choice of Law and Venue Clauses

March 8, 2018 The NAIC's Pre-Dispute Mandatory Arbitration Clauses (D) Working Group is seeking comments on a draft bulletin that purports to restrict insurers' use of arbitration clauses as well as choice of venue and choice of law clauses. Read more

Financial & Regulatory Brief: At the NAIC

February 15, 2018 The NAIC announced last week the release of State Ahead, a paper that will guide the organization's strategic initiatives over the next three years. A separate website has been set up to communicate and... Read more

NAIC Unveils Three-Year Strategic Plan

February 8, 2018 The NAIC on Feb. 7 released a new strategic plan meant to guide its operations for the next three years. The plan, dubbed "State Ahead," describes the NAIC and state regulation as facing change on an unprecedented... Read more

NAIC Committee Assignments Include Changes at Key Panels

January 19, 2018 The NAIC has announced committee assignments for 2018, with significant changes to committees that are of importance to NAMIC. Jennifer Hammer, director of the Illinois Department of Insurance, has been named... Read more

Financial & Regulatory Brief: At the NAIC

January 18, 2018 NAMIC submitted two comment letters to the Group Capital Calculation Working Group at the NAIC, one related to senior debt and surplus notes and another regarding non-regulated entities. The comments... Read more

Montana: Commissioner of Securities and Insurance Adopts NAIC Credit for Reinsurance Model Regulation

January 15, 2018 The Montana Commissioner of Securities and Insurance has adopted new rules and an amendment to regulation 6.6.3813, implementing the NAIC Credit for Reinsurance... Read more

NAIC Big Data Working Group Taking Comments on Models, Regulatory Framework, Data Needs

January 4, 2018 The NAIC's Big Data (EX) Working Group is receiving comments on three documents that could shape the direction of its activities through 2018 and... Read more

Financial & Regulatory Brief: At the NAIC

December 20, 2017 The NAMIC Government Affairs staff attended the National Association of Insurance Commissioners’ fall meeting held Dec. 1-4 in Honolulu. NAMIC sent only two staff members to the meeting, and other... Read more

Capital Adequacy Task Force Delays - Investment and Operational Risk Factors

December 12, 2017 The Capital Adequacy Task Force met Nov. 14 to adopt their working groups’ reports, which included the Investment Risk-Based Capital Working Group and the... Read more

Statutory Accounting Principles Working Group Adoptions, Proposals

December 12, 2017 Recently the working group members conducted two conference calls where they adopted and proposed several changes to SAP. One agenda item that was adopted... Read more

Examination, Analysis, and Risk-Focused Surveillance

December 12, 2017 The NAIC adopted a new risk-focused process in 2010 on how financial examinations are conducted at the state level. Through the implementation of changes to the... Read more

Auto Insurance Working Group Progresses with Statistical Agents

December 12, 2017 The Auto Insurance (C/D) Working Group did not meet in Hawaii, but there have been some developments from the statistical agent efforts to provide data. As you know, in Philadelphia... Read more

Group Capital Calculation Working Group Keeps Issuing Questions for Comment

December 12, 2017 The Group Capital Calculation Working Group is trying to calculate an aggregated amount of total capital that an insurance group is holding in all of its affiliates. This is intended to fend... Read more

NAMIC Opposes Proposed Antifraud Task Force Charge to Review Algorithms

December 12, 2017 NAMIC and other property/casualty insurance industry representatives spoke in opposition to a proposed charge for the NAIC's Antifraud (D) Task Force to "review anti-fraud algorithms for... Read more

Regulatory Sandbox Discussion Prompts Concerns

December 12, 2017 Representatives of agent and consumer organizations noted concerns about potential adoption of a "regulatory sandbox" initiative after discussions on the subject during the meeting of... Read more

International Issues at the NAIC - G Committee, IAIS Q&A

December 12, 2017 The NAIC Fall Annual meeting included both a meeting of the G Committee and a Q&A with Jonathan Dixon, the new secretary general of the International Association of Insurance Supervisors. IAIS is... Read more

Big Data Working Group Outlines Approach for Predictive Model Review, Exposes Drafts on Regulatory Framework and Needs

December 12, 2017 Following a lull in activity after the departure of its chair following its last in-person meeting, the NAIC's Big Data (EX) Working Group signaled a return to its ambitious pace during... Read more

Corporate Governance to Become Accreditation Standard in 2020

December 12, 2017 The Financial Regulation and Accreditation Standards (F) Committee met to address several accreditation decisions that were deferred from the summer meeting. Last summer the... Read more

Reinsurance Task Force Meets to Discuss Options for the Covered Agreement Implementation

December 12, 2017 At the summer meeting, the Reinsurance Task Force discussed the Covered Agreement. It was anticipating a Treasury policy statement that would address several clarifications to the ambiguous agreement. The Covered Agreement in its current form requires... Read more

Financial Stability Task Force and the Macroprudential Surveillance Initiative

December 12, 2017 The Financial Stability (EX) Task Force announced at the summer meeting its intentions to determine if there are gaps in macroprudential data related to large insurance groups. The task force indicated it was looking for... Read more

Cybersecurity Working Group Disbanded; Treasury Support for Model Noted

December 12, 2017 The NAIC's Cybersecurity (EX) Working Group, has garnered a high level of attention from regulators and interested parties since its formation in November 2014. This working group finalized its work on the Insurance Data Security Model Law at... Read more

South Carolina: DOI Proposes Regulation Changes, Issues Safe Home Grants Bulletin

December 11, 2017 The South Carolina Department of Insurance is proposing to revise Regulation 69-1 to add motor vehicle physical damage appraisers to the existing language for temporary licensure of adjusters in the event of... Read more

Nevada: NAMIC Submits Comments on Proposed Revised Regulation on Use of NAIC Incorporated by Reference Documents

November 15, 2017 The Department of Business and Industry, Division of Insurance has scheduled a rulemaking on Nov. 21 for a proposed revised regulation relating to use of... Read more

Financial & Regulatory Brief: At the NAIC

October 20, 2017 The Statutory Accounting Principles Working Group conducted a conference call on Oct 12 to review and act on several open agenda items, but no issue garnered as much attention as that of accounting for surplus... Read more

At the NAIC: Operational Risk Subgroup Looking at Double-Counting RBC Issue

September 21, 2017 The Operational Risk Subgroup held its first meeting since the Capital Adequacy Task Force voted to delay application of the operational risk factor included in the risk-based capital formula. Originally the charge was... Read more

Receivership and Insolvency (E)Task Force, Receivership Model Law (E) Working Group Work on Long-Term Care Dilemma

August 16, 2017 The Receivership and Insolvency Task Force met on Aug. 7 and adopted its 2018 charges. A modified charge was added for the Receivership Model Law Working Group to ... Read more

Workers' Compensation (C) Task Force Finds Healthy Markets

August 16, 2017 The Workers’ Compensation Task Force met on Aug. 8. The task force received a report from the NAIC/International Association of... Read more

Antifraud (D) Task Force Discusses Congressional Fraud Hearing

August 16, 2017 The Antifraud Task Force met on Aug. 7. Brooke Stringer of the NAIC provided a report of the Senate Commerce, Science and Transportation Subcommittee on... Read more

Statutory Accounting Principles (E) Working Group Activity

August 16, 2017 The Statutory Accounting Principles Working Group proposed several substantive changes to statutory accounting and discussed two major projects... Read more

Risk-Focused Surveillance (E) Working Group Creates Joint Drafting Group

August 16, 2017 A group of interested parties that NAMIC has been working closely with over the last two years gave a... Read more

Capital Adequacy Task Force Discusses Going Public

August 16, 2017 NAIC legal staff presented to the Capital Adequacy Task Force the idea of sharing RBC data with actuarial consultants to provide... Read more

Financial Condition (E) Committee Considers A.M. Best Offer

August 16, 2017 The Financial Condition (E) Committee met on Aug. 8 to continue discussions about proposed new investment disclosures. Alternatives to the proposal... Read more

NAIC/State Government Liaison Committee Welcomes 35 Legislators

August 16, 2017 The NAIC/State Government Committee invited state policymakers to the summer meeting; ultimately 35 legislators, including officers... Read more

International Relations (G) Committee, ComFrame Development (G) Working Group, and IAIS Q&A

August 16, 2017 NAIC President Ted Nickel announced in the opening session that the U.S. was going to be very persistent at the International Association of Insurance Supervisors in pushing for... Read more

Group Capital Calculation (E) Working Group Continues Discussions

August 16, 2017 The Group Capital Calculation Working Group met on Aug. 6. Florida Insurance Commissioner David Altmaier, chair of the working group, opened the meeting with a... Read more

Financial Accreditation and Standards (F) Committee Defers Model Adoption Pending Covered Agreement

August 16, 2017 After the roll was taken and the minutes and charges were adopted, the F Committee had an unusual motion from the Texas representative... Read more

Financial Stability (EX) Task Force to Study Macroprudential Data Gaps

August 16, 2017 The Financial Stability (EX) Task Force started movement toward a much more active role at the Summer National Meeting. It is proposing that an examination of the gaps in... Read more

In Big Data (EX) Working Group NAMIC Opposes Predictive Analytics Proposal

August 16, 2017 NAMIC expressed strong concerns to the Big Data (EX) Working Group... Read more

Cybersecurity (EX) Working Group Approves Model Law

August 16, 2017 The Cybersecurity (EX) Working Group and the Innovation and Technology (EX) Task Force finally voted to approve an amended Read more

Auto Insurance Working Group Adopts Data Call Proposed by Statistical Agents

August 16, 2017 The Auto Insurance (C/D) Working Group met to discuss comments received in response to its latest... Read more

NAMIC Special Report 2017 | NAIC Summer Annual Meeting Summary

August 15, 2017 NAMIC Special Report 2017 | NAIC Summer Annual Meeting Summary Read more

Property Casualty Committee to Discuss Commercial Lines Modernization

July 25, 2017 The NAIC's Property Casualty (C) Committee is scheduled to continue discussions on commercial lines modernization when it meets on Aug. 8 during the group's Summer... Read more

Big Data Working Group to Discuss Comments on Predictive Model Review Proposal

July 25, 2017 The Big Data (EX) Working Group will hear comments from interested parties, including NAMIC, on Aug. 6 during the NAIC Summer National Meeting regarding a proposal to... Read more

Cybersecurity Working Group to Discuss, Potentially Adopt, Model Law

July 25, 2017 The NAIC's Cybersecurity (EX) Working Group may vote on the data security model law that has been the focus of its work for more than a year and a half when it... Read more

Auto Insurance Working Group to Discuss Comments on Proposed Data Call

July 25, 2017 The Auto Insurance (C/D) Working Group will meet on Aug. 6 primarily to discuss comments received in response to its latest proposal for collecting... Read more

NAIC Cybersecurity Model Law May be on Fast Track for Adoption

July 25, 2017 The NAIC's Cybersecurity (EX) Working Group may vote on the data security model law that has been the focus of its work for more than a year and a half when it... Read more

At the NAIC: Operational Risk Delayed One Year; Analysis Handbook Guidance Proposed; Redundant Examiner Handbook Proposal Exposed for Comment

July 21, 2017 The Capital Adequacy Task Force recently delayed the application of the operational risk factor included in the risk-based capital formula and applied to all insurers for 2017 year-end reporting... Read more

NAIC Panel Seeking Insurer Responses on Post-Disaster Recovery Practices

July 13, 2017 The NAIC's Consumer Outreach and Assistance Post-Disaster Subgroup is seeking responses from insurers to a number of questions involving post-disaster recovery practices and has asked... Read more

NAIC Big Data Panel taking Comments on Predictive Analytics Team Proposal

July 11, 2017 The NAIC Big Data (EX) Working Group is accepting comments on a proposed process for reviewing complex insurer models that would entail the creation of a... Read more

NAIC Cybersecurity Working Group Exposes New Draft of Insurance Data Security Model

July 11, 2017 The NAIC's Cybersecurity Working Group has exposed a new draft of the Insurance Data Security Model Law that has been the Read more

NAIC Big Data Panel to Consider Creation of Predictive Analytics Review Process

June 27, 2017 The NAIC Big Data (EX) Working Group will consider the development of an NAIC-based process for reviewing complex insurer models when it meets by conference call on... Read more

NAIC Seeking Input on Commercial Lines Modernization, Including Compact Idea

June 15, 2017 The NAIC's Property Casualty (C) Committee is seeking input from industry and other interested parties regarding commercial lines modernization and... Read more

At the NAIC: New Factors Proposed for RBC Formula; Mortgage Loans Definition Expanded; NAMIC Supports NAIC Approach on Latest IAIS Consultation Draft

June 15, 2017 The Investment Risk-Based Capital Working Group met on June 13 to expose new bond factors that will be used in the RBC formula. The working group already decided to expand... Read more

In the World: IAIS Accounting Panel Discusses New IFRS Insurance Accounting Standard; NAMIC Submits Comments to IAIS on Latest Consultation Draft

June 15, 2017 The Accounting and Auditing Working Group of the International Association of Insurance Supervisors held a conference call on June 8 to update stakeholders on the... Read more

NAIC Big Data Working Group Revises Work Plan

May 23, 2017 After hearing concerns from parties including NAMIC and the chair of its parent task force, the NAIC’s Big Data Working Group has released a slightly revised version... Read more

NAIC Working Group Taking Comments on Pre-Dispute Mandatory Arbitration Provisions

May 22, 2017 The NAIC’s Pre-Dispute Mandatory Arbitration Clauses (D) Working Group is taking comments from interested parties regarding various aspects of... Read more

At the NAIC: NAIC Committee Defers Decision to Expand Investment Schedule Reporting; NAMIC Submits Separate Comments on Catastrophe Risk, Operational Risk Factors;

May 18, 2017 The NAIC Financial Condition (E) Committee delayed a decision to create a new reporting obligation that would require all insurers to report limited Schedule D investment information on a... Read more

States to Revise Terrorism Data Call for 2017

April 19, 2017 The Terrorism Insurance Implementation (C) Working Group revealed during its meeting on April 6 that the terrorism insurance data call conducted by the states last year was less than... Read more

NAIC/Consumer Liaison Committee Explores Flood, Insolvencies, Affordable Care

April 19, 2017 The NAIC/Consumer Liaison Committee began with a dialogue with Birney Birnbaum of the Center for Economic Justice and Pennsylvania Insurance Commissioner Teresa Miller on... Read more

Large Deductibles and Long-Term Care Dominate Discussion of the Receivership and Insolvency Task Force

April 19, 2017 The primary action with the Receivership and Insolvency (E) Task Force occurred in the working groups. The Receivership Financial Analysis Working Group reported that it met in a... Read more

Group Capital Calculation (E) Working Group Offers More Proposals, No Decisions

April 19, 2017 At the Group Capital Calculation Working Group meeting Pacific Life gave a presentation offering three alternatives for insurance groups to apply capital charges to affiliates under a... Read more

International Relations Committee Talks Covered Agreements and More

April 19, 2017 The International Relations (G) Committee met to discuss a variety of international issues, but the most interesting part of the meeting was the discussion of the status of... Read more

Workers' Compensation Task Force Talks Fee Schedules

April 19, 2017 The National Council on Compensation Insurance presented information to the Workers' Compensation Task Force on the financial impact of the use of air ambulances on... Read more

Group Solvency Issues Working Group Working on Form Over Guidance

April 19, 2017 Earlier this year the Group Solvency Issues Working Group tried to add new "guidance" about completing the annual Enterprise Risk Report (Form F) that all holding companies... Read more

New NAIC Leadership: Effects on Spring Meeting

April 19, 2017 Beginning in 2017 Wisconsin Commissioner Ted Nickel assumed the presidency of the NAIC. He was formerly with Church Mutual, one of the great NAMIC member companies. His opening speech at the... Read more

Innovation and Technology Task Force Holds Inaugural Meeting

April 19, 2017 The first meeting of the recently formed Innovation and Technology (EX) Task Force was a crowded affair, packed with regulators, top NAIC staff, and plenty of interested parties, making it... Read more

Market Regulation Committee Approves Certification Pilot Program

April 19, 2017 The Market Regulation and Consumer Affairs (D) Committee adopted a voluntary market regulation certification pilot program during the NAIC Spring National Meeting. The pilot program replaces... Read more

Property Casualty Committee Eyeing Commercial Lines Modernization Again

April 19, 2017 The NAIC's Property Casualty (C) Committee announced plans to renew an examination of the topic of commercial lines modernization during the NAIC's Spring National Meeting in Denver, with... Read more

Market Analysis Panel Considers Changing Process for Selecting New MCAS Lines

April 19, 2017 The Market Analysis Procedures (D) Working Group took comments from interested parties regarding proposed changes to the procedures for selecting new Market Conduct Annual Statement lines of... Read more

Big Data Working Group Hears Presentation on Regulation, Discusses Work Plan

April 19, 2017 The Big Data (EX) Working Group heard a presentation on the regulation of data use by professor Lawrence Powell of the Alabama Center for Insurance Information and Research and discussed its... Read more

Cybersecurity Focus Turns to NY Rule, Dropping Breach Content From Data Security Model

April 19, 2017 Members of the Cybersecurity (EX) Working Group were intrigued by two ideas that offered ways to move forward on adopting a model data security law that could be supported in the... Read more

Catastrophe Risk Now Part of RBC Formula; Operational Risk Coming Soon

April 19, 2017 A new catastrophe risk charge will be required as part of the Risk-Based Capital filing for year-end 2017 reporting, and a new operational risk charge is on pace to also be required in... Read more

Accounting Panel Says No to New Disclosures, Already Have Them

April 19, 2017 After more than a decade of debating, the decision was made by the Statutory Accounting Principles Working Group that the Financial Accounting Standards Board insurance contract standard will not... Read more

Filing Requirement for Private Letter Ratings Delayed

April 19, 2017 The Valuation of Securities Task Force was supposed to vote, and most likely adopt, changes to the Purposes and Procedures Manual of the NAIC Investment Analysis Office. However, due to... Read more

Investment Disclosure Decision Coming Soon

April 19, 2017 During the April 9 meeting of the Accounting Practices and Procedures Task Force, regulators had a discussion but did not vote on the exposed referral from the... Read more

Automobile Insurance Working Group Votes to Explore Ways to Collect Data

April 19, 2017 During the NAIC Fall National Meeting last December, the Automobile Insurance (C/D) Working Group unveiled a proposal to collect data from insurers "for the purpose of studying affordability and availability of private... Read more

Florida: Legislation on Policy Transfer, Agent and Adjuster Licensing, IRMA Provisions, Advertising Gifts Moves Along

April 7, 2017 The Senate floor is the next stop for CS/SB 812</a>, which would make it easier to transfer homeowner policies within the same insurance group. The Senate Rules Committee amended and approved the bill on April 6. The amendment makes clear that... Read more

NAIC Pre-Dispute Mandatory Arbitration Clauses

April 4, 2017 The NAIC's recently formed Pre-Dispute Mandatory Arbitration Clauses (D) Working Group is taking initial comments on the subject of its charge through April 17. The working group was formed in response to a... Read more

Market Regulation Committee Will Consider Certification Pilot Program

April 4, 2017 The Market Regulation and Consumer Affairs (D) Committee will consider adoption of a voluntary market regulation certification pilot program when it meets on April 10 during the NAIC Spring National... Read more

Cybersecurity Working Group to Receive Report on Model Law Drafting Process

April 4, 2017 The Cybersecurity (EX) Working Group will receive a report from the chair of the drafting group that has been working on the Insurance Data Security Model Law since November of last year, but it is not... Read more

Property Casualty Committee to Revisit Topic of Commercial Lines Modernization

April 4, 2017 The NAIC's Property and Casualty (C) Committee will revisit the topic of commercial lines modernization when it meets on April 10 during the NAIC's Spring National Meeting in... Read more

Big Data Working Group to Discuss Its Ambitious Work Plan

April 4, 2017 The Big Data (D) Working Group will discuss and take comments from interested parties, including NAMIC, on its extremely ambitious work plan when it meets on April 8 during the... Read more

Regulators Will Vote to Reject GAAP Disclosures for Insurance Contracts

April 4, 2017 During the hearing portion of the Statutory Accounting Principles (E) Working Group meeting, regulators will vote on a proposal that will reject the Financial Accounting Standards... Read more

Accounting Panel to Discuss Expanding Investment Disclosures

April 4, 2017 The Accounting Practices and Procedures (E) Task Force will discuss whether to increase the number of disclosures related to investments when it meets in Denver on April 9. The task force will... Read more

Securities Valuation Office Will Charge Filing Fee for New Filing Requirement

April 4, 2017 When the Valuation of Securities (E) Task Force meets on April 9 it will be voting on proposed changes to the Purposes and Procedures Manual of the NAIC Investment Analysis Office. These changes were... Read more

Group Solvency Issues Working Group: Legal Opinion Expected on Implementation Guide for ERR Filing

April 4, 2017 Significant revisions to the Holding Company Act were adopted by the NAIC in December 2010 in response to the financial crisis, which illustrated the need for enhanced... Read more

Group Capital Calculation Working Group Status

April 4, 2017 The Group Capital Calculation Working Group over the last year has exposed for comment several questions surrounding how to design a calculation that will capture insurance and non-insurance affiliate risk for... Read more

NAIC Discussions About the Final Draft Covered Agreement at Spring Meeting

April 4, 2017 The final draft of the covered agreement was finalized by the U.S. Treasury negotiating team and the European Commission that was then submitted to Congress on Jan. 13. The agreement sits... Read more

Terrorism Working Group to Discuss Results of State Data Call

April 4, 2017 When the Terrorism Insurance Implementation (C) Working Group meets on April 6, its main agenda item will be a discussion of the state terrorism insurance data call that the states administered... Read more

Automobile Insurance Working Group to Discuss Comments on Proposed Data Call

April 4, 2017 On the eve of its last in-person meeting during the NAIC Fall National Meeting last December, the Automobile Insurance (C/D) Working Group unveiled a proposal to collect data from... Read more

Florida: Insurance 'Catch-All' Report - Construction Defects, Insolvency Provisions, Fraud Reporting, Advertising Gifts

April 3, 2017 Florida's "Right to Repair" law would be tweaked and enhanced under CS/HB 1271, which was amended and approved March 28 by the House Civil Justice and Claims Subcommittee. The legislation on... Read more

Florida: NAIC Insurer Receivership Model Language Passes First House Committee; Policy Transfer Bill Clears First Senate Committee

March 20, 2017 HB 837, a Florida Department of Financial Services bill that adopts portions of the NAIC Insurer Receivership Model Act into the current liquidation and receivership law, was amended and approved by... Read more

At the NAIC: SVO Seeking to Expand Authority; Form F Implementation Guide Heavily Opposed by Industry; Group Capital Discussions Continue

March 16, 2017 The NAIC's Valuation of Securities Task Force has exposed for comment a proposed rewrite of the Securities Valuation Office's Purposes and Procedures Manual. The proposed revisions would... Read more

Texas: Bills Challenging NAIC Authority Filed in State Senate

March 10, 2017 Sen. Larry Taylor filed two bills - SB 1449 and SB 1450 - on March 8 that would significantly limit the authority of NAIC regulations and... Read more

At the NAIC: Fall National Meeting Summaries; NAIC Commissioners Vote to Eliminate FIO; Operational Risk Methodology Narrowed Down to a Single Approach; NAIC's Reinsurance Collateral Contingency

January 19, 2017 The NAMIC State & Policy Affairs staff attended the National Association of Insurance Commissioners' fall meeting held Dec. 9-13 in Miami. Please view the NAMIC Advocacy Special Edition NAIC Review to learn about the latest... Read more

Operational Risk RBC Working Group Faces Questions From Regulators

December 20, 2016 The Capital Adequacy Subgroup that has been working on operational risk over the last three to four years is starting to reach conclusion on the structure of the RBC factor for operational risk. The Operational Risk RBC Subgroup did not... Read more

Group Solvency Issues Working Group Considers Criticisms of Proposed Guidance Manual

December 20, 2016 As NAMIC reported in the NAIC Preview, the Group Solvency Issues Working Group conducted a survey of state regulators about the effectiveness of the Enterprise Risk Report or Form F filing. State regulators responding to the... Read more

Group Capital Calculation Working Group Keeps Working on How to Compare Different Requirements

December 20, 2016 The Group Capital Calculation Working Group discussed a variety of issues surrounding the comparison of capital that might be required by different jurisdictions, different sectors, and even for different lines of insurance. The use... Read more

Covered Agreement Status Updated, Reinsurance Talks Continue

December 20, 2016 As reported in the NAIC Preview, NAMIC expected action on these issues at the fall meeting, but each committee addressing parts of the issue, including the Financial Condition (E) Committee and the Reinsurance (E) Task... Read more

Accounting Panel Will Defer to Parent Group on Key Investment Reporting Decision

December 20, 2016 The NAIC has been exploring the possibility of more frequent disclosures related to investment reporting and at one point proposed requiring full investment schedules to be filed quarterly. Fortunately, that proposal was... Read more

Accounting Standard for Loan-Backed, Structured Securities to be Renamed, Revised

December 20, 2016 The NAIC is once again looking at SSAP No. 43R &ndash; Loan-Backed and Structured Securities, and this time it plans to change the name. SSAP No. 43R may be referred to as Structured Finance Securities in the future if the SAPWG adopts... Read more

Money Market Mutual Funds Will be Considered Cash Equivalents Starting with 2017 Reporting

December 19, 2016 Effective Dec. 31, 2017, money market mutual funds will be reclassified as cash equivalents instead of short-term investments and will be reported at fair value (allowing net asset value as a practical expedient) with any... Read more

Current, Former Regulators Stress Need for More Training

December 19, 2016 Prior to the kickoff of the NAIC Fall National Meeting in Miami, the Financial Examiners Education Foundation held its fifth annual Symposium on Insurance Regulation. The event included topics on statutory accounting, risk-based... Read more

A Setback to NAIC Bond Designations Expansion

December 19, 2016 The recommendation to expand the number of risk-based capital categories for bonds in the RBC formula to 20 categories plus the exempt category was referred to the Valuation of Securities Task Force during its meeting at the... Read more

Automobile Insurance Working Group Discusses Proposed Data Call, Sets Deadline for Public Comments

December 19, 2016 A four-state task force made up of members of the Automobile Insurance (C/D) Working Group presented a proposal to the working group that could represent the group&rsquo;s first step toward a formal analysis of the affordability and... Read more

Vote on Market Regulation Certification Proposal Put Off Without Explanation

December 19, 2016 The full membership of the NAIC was expected to consider a proposed market regulation certification program but the vote was put off to a future meeting for reasons not explained during the concluding session of the NAIC's Fall National... Read more

Delay on Cybersecurity Model Becomes the Subject of Regulatory Humor

December 19, 2016 It is well known to anyone following the issue that the leaders of the NAIC&rsquo;s Cybersecurity (EX) Task Force have had high hopes to get a model law completed by the end of the year, hopes that persisted until fairly... Read more

Property Casualty Committee, Plenary Approve Home-Sharing White Paper

December 19, 2016 The NAIC's Property Casualty (C) Committee as well as Executive/Plenary approved a white paper on home sharing, titled "Insurance Implications of Home-Sharing: Regulator Insights and Consumer Awareness," during the... Read more

Understand Market Prior to Considering Model Law Changes, NAMIC Tells Big Data Panel

December 19, 2016 While the consideration of model law developments is part of the new charges of the NAIC's Big Data (D) Working Group, the panel should not pursue such initiatives without first gaining a better understanding of how insurers are... Read more

Selection of Consedine as New NAIC CEO a Good Choice

December 11, 2016 The NAIC is having its fall meeting this weekend in Miami, and one of the most talked about items coming into the meeting was whether the organization would... Read more

NAMIC Welcomes NAIC Selection of Consedine as CEO

December 11, 2016 The National Association of Mutual Insurance Companies welcomes the selection of Michael F. Consedine as the new CEO of the National Association of Insurance Commissioners, announced Dec. 10... Read more

Semi-Annual Reporting -- A First of Its Kind

December 8, 2016 The NAIC has been exploring the possibility of more frequent disclosures related to investment reporting and at one point proposed requiring full investment schedules to be filed quarterly. Fortunately, that proposal was... Read more

Accounting, Reporting for Money Market Mutual Funds Will Change

December 8, 2016 The Statutory Accounting Principles Working Group will meet on Dec. 10 to discuss both the classification and measurement method for money market mutual funds, among other topics. At the NAIC Summer National Meeting in San Diego, the... Read more

An Alternative Proposal for Fixed-Income Risk-Based Capital Factors to be Discussed

December 8, 2016 When the Investment Risk-Based Capital Working Group meets on Dec. 11, regulators and industry will continue the dialog related to updating bond factors in the life, property/casualty, and health RBC formulas. The working group has... Read more

Full NAIC to Consider Market Regulation Certification Proposal

December 8, 2016 The full membership of the NAIC will consider during the NAIC Fall National Meeting a proposed market regulation certification program under which states would have to achieve certain standards regarding resources and processes to... Read more

Cybersecurity Task Force Not Expected to Vote on Model

December 8, 2016 While the chair and vice chair of the Cybersecurity (EX) Task Force have stated repeatedly over the past several months that their goal was to have the NAIC's Insurance Data Security Model Law fully developed and ready to be voted on by... Read more

Property Casualty Committee to Consider Home Sharing White Paper

December 8, 2016 The NAIC&rsquo;s Property Casualty (C) Committee will consider adoption of a white paper on home sharing when it meets Dec. 12 during the NAIC's Fall National Meeting. A draft of the white paper was previously adopted by the... Read more

Operational Risk RBC Starts Moving Toward Conclusions

December 8, 2016 The Capital Adequacy Subgroup that has been working on operational risk over the last three to four years is starting to reach conclusion on the structure of the RBC factor for operational risk. The Operational Risk RBC Subgroup will not... Read more

Group Solvency Issues Working Group: Survey Results on Enterprise Risk Report

December 8, 2016 Significant revisions to the Holding Company Act were adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. All states have completed adoption of the 2010 revisions. This revision included... Read more

Covered Agreement Problems, International Trade Barriers

December 8, 2016 The message from the NAIC summer meeting on global reinsurance issues was two-fold: to the EU countries considering trade barriers, if you push too hard your reinsurers may have to pay 100 percent collateral when you become a... Read more

Automobile Insurance Working Group to Discuss Proposal to Collect Data, Study Affordability

December 8, 2016 Four years after it was created to "review issues relating to low-income households and the auto insurance marketplace and make recommendations, as appropriate," the Automobile Insurance (C/D) Working Group now appears to be... Read more

At the NAIC: Survey Concerning International Supervisors Released; ERR Guidance Manual Contemplated; Group Capital Calculation Comments Submitted; Examiners Handbook Revisions Considered

November 18, 2016 The NAIC sent out a survey to companies and regulators that is attempting to learn more about the barriers imposed by some European insurance regulators. NAMIC is aware of some countries that have communicated their... Read more

NAIC Committee to Consider Restrictions on Arbitration Clauses

November 8, 2016 The NAIC's Market Regulation and Consumer Affairs (D) Committee has approved a charge for 2017 to consider whether to adopt or amend a model law to prohibit or otherwise restrict the use of... Read more

NAIC Big Data Charges Adopted With Changes Sought by NAMIC

November 7, 2016 The Big Data Working Group and its parent Market Regulation and Consumer Affairs (D) Committee have approved charges for 2017 that reflect changes advocated by NAMIC to better reflect that... Read more

Despite NAMIC Objections, NAIC Panel to Hold Regulator-Only Calls to Review Company Rate Filings

November 7, 2016 The NAIC&rsquo;s Casualty Actuarial Statistical (C) Task Force, operating under a new charge adopted by its parent committee last week, will hold closed, regulator-only conference calls to... Read more

NAIC Action Against European Reinsurers Contemplated

November 3, 2016 Problems between the U.S. and the European Union related to insurance regulatory differences have put (re)insurance companies attempting to do business in EU countries at a significant disadvantage in... Read more

NAMIC Suggests Changes to NAIC Big Data Working Group Charges

October 26, 2016 NAMIC has suggested revisions to proposed charges for the NAIC's Big Data (D) Working Group to align with the stated intent of the working group's chair that the charges are not meant to indicate the working group has reached... Read more

At the NAIC: Regulators Plan for the Worst on Credit for Reinsurance; Troubling Suitability Language Takes Another Step Toward the Handbook; NAMIC Submits Comments to ORSA Subgroup on Best Practices

October 13, 2016 The National Association of Insurance Commissioners Financial Condition (E) Committee has issued a memo and proposed RBC revisions that considers contingency planning for foreign reinsurance collateral. The committee... Read more

NAIC Big Data Working Group to Consider New Charges Including Regulatory Review

October 10, 2016 The NAIC's Big Data (D) Working Group will consider adoption of ambitious new charges for 2017 when it meets on Oct. 13. They include considering changes to model laws and regulations, new reporting requirements and... Read more

NAIC: Important Potential Changes to Credit for Reinsurance

September 29, 2016 The National Association of Insurance Commissioners Financial Condition (E) Committee has issued a memo and proposed RBC revisions that considers contingency planning for... Read more

Missouri: Legislature Overrides Vetoes of Towing, Workers&rsquo; Comp Collateral Bills; Junk Science, Phantom Damages Reforms Stall

September 16, 2016 The Missouri General Assembly returned to Jefferson City on Sept. 14 for the annual veto session. Among the vetoes of bills affecting the insurance industry that lawmakers... Read more

At the NAIC: Summer National Meeting Summaries

September 14, 2016 The NAMIC State & Policy Affairs staff attended the NAIC summer meeting held Aug. 25-29 in San Diego. Please view the NAMIC Advocacy Recap Special Edition NAIC Review... Read more

Market Regulation Committee Narrowly Approves "Certification" Program

September 7, 2016 After considerable discussion the Market Regulation and Consumer Affairs (D) Committee voted 7-6 to approve the Market Regulation "Certification" Program that had formerly been known as... Read more

NAMIC Stresses Benefits of Arbitration Clauses to Market Regulation Committee

September 7, 2016 Responding to a proposal to ban mandatory arbitration clauses in insurance contracts, NAMIC stressed the consumer benefits of arbitration in comments before the Market Regulation and Consumer Affairs (D) Committee during... Read more

Louisiana Commissioner Wants More Time to Discuss NFIP Reform

September 7, 2016 Louisiana Insurance Commissioner Jim Donelon expressed frustration first at the meeting of the Property and Casualty Insurance (C) Committee at the NAIC Summer National Meeting and later at the concluding... Read more

Major Concerns Remain Regarding Second Draft of Model, Cybersecurity Task Force Told

September 7, 2016 The NAIC's Cybersecurity (EX) Task Force was advised during its meeting at the Summer National Meeting that while some changes to its model Insurance Data Security Model Law could be viewed as improvements, there were still... Read more

Privacy Disclosure Model Bulletin Adopted by NAIC

September 7, 2016 A model bulletin to adopt federal guidance and reduce the amount of privacy notices that have to be sent to consumers was adopted by the full NAIC membership at the recently concluded... Read more

NAIC Panel Exposes Draft Language for Post-Catastrophe Statutory, Regulatory Restrictions

September 7, 2016 An NAIC working group has exposed for comment draft language for laws and regulations to establish post-catastrophe reporting requirements and consumer grace periods as well as limitations on insurers' ability to... Read more

Proposal for NAIC Resource to Review Pricing Models Discussed by Actuarial Task Force

September 7, 2016 The NAIC's Casualty Actuarial Statistical (C) Task Force heard a presentation from consumer advocate Birny Birnbaum on the NAIC developing resources to "assist" states with review of complex pricing models during... Read more

Big Data Working Group Discusses Workstreams, Plan for Charges

September 7, 2016 The Big Data (D) Working Group had a wide-ranging discussion regarding workstream plans and recommendations for 2017 charges when it met during the NAIC Summer National Meeting but did not... Read more

NAIC Holds Special Session on Infrastructure Investing

September 7, 2016 The NAIC held a special session on infrastructure investments with the purpose of the meeting being purely exploratory and focused on how infrastructure investing should be defined and what impediments may... Read more

Investment Reporting Dominates Accounting Meeting; New GAAP Standards Exposed

September 7, 2016 While several NAIC Financial Condition (E) Committee working groups and task forces did not meet at the national meeting in San Diego, the Statutory Accounting Principles Working Group had a very... Read more

TRIA Working Group Announces Deadline Extension for Terrorism Insurance Data Call

September 7, 2016 The Terrorism Insurance Implementation (C) Working Group announced that the deadline for companies to comply with the ongoing terrorism insurance data call that is being conducted jointly by... Read more

New People in New Positions

September 7, 2016 Peter Hartt, New Jersey insurance director, was named to the Financial Stability and Oversight Council as the state insurance representative replacing Adam Hamm of South... Read more

Receivership and Insolvency Task Force Discusses International Issues

September 7, 2016 Much of the work done at the Receivership and Insolvency Task Force meeting during the NAIC's Summer National Meeting revolved around international issues. There was discussion about the draft from... Read more

CDAWG to Tackle Comments on IAIS Insurance Capital Standard Exposure

September 7, 2016 The ComFrame Development and Analysis Working Group met and briefly discussed its proposed response to the Insurance Capital Standard consultation draft issued in July for a... Read more

Group Solvency Issues Working Group: Survey Results on Enterprise Risk Report

September 7, 2016 Significant revisions to the Holding Company Act were adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. All states have completed adoption of... Read more

Group Capital Calculation Working Group Exposes Questions Until Oct. 24

September 7, 2016 The Group Capital Calculation Working Group met to expose for comment for 60 days several questions surrounding how to design a calculation that will capture insurance and non-insurance affiliate risk for... Read more

Covered Agreement Problems, International Trade Barriers

September 7, 2016 Beginning with the opening remarks at the NAIC national meeting by NAIC President John Huff and ending with the meeting of the Financial Condition (E) Committee, the 2016 summer meeting was very focused on... Read more

NAIC Panel to Survey States on Their Review of Sophisticated Pricing Models

August 31, 2016 The NAIC's Casualty Actuarial and Statistical (C) Task Force, the panel that drafted the white paper on price optimization, is planning to survey states regarding regulatory review of the... Read more

Actuarial Task Force to Hear Proposal for NAIC'Resource' to Review Pricing Models

August 24, 2016 The NAIC&rsquo;s Casualty Actuarial Statistical (C)Task Force will hear a presentation from consumer advocate Birny Birnbaum on the NAIC developing resources to &ldquo;assist&rdquo; states with review of complex pricing models when it... Read more

Big Data Working Group to Discuss Recommendations for 2017 Charges

August 24, 2016 The Big Data (D) Working Group will discuss recommendations for 2017 charges and a timeline for final recommendations when it meets on Aug. 26 during the NAIC Summer National Meeting. To be included in... Read more

Market Regulation Accreditation Program, Rebranded as a &lsquo;Certification&rsquo; Program, to Be Discussed

August 24, 2016 The Market Regulation and Consumer Affairs (D) Committee will discuss the Market Regulation &ldquo;Certification&rdquo; Program that had formerly been known as the Market Regulation &ldquo;Accreditation&rdquo; Program when it meets on... Read more

Market Regulation Committee to Discuss Arbitration Clauses

August 24, 2016 In response to a request by a funded consumer representative, the Market Regulation and Consumer Affairs (D) Committee will discuss arbitration clauses when it meets on... Read more

Property/Casualty Committee to Discuss Recommendations for NFIP Reform

August 24, 2016 During its meeting on Aug. 28 during the NAIC Summer National Meeting, the Property and Casualty Insurance (C) Committee will discuss proposed recommended principles for reforming the National Flood Insurance Program when it is... Read more

Cybersecurity Task Force to Hear Initial Comments on Model's Second Draft

August 24, 2016 The NAIC&rsquo;s Cybersecurity (EX) Task Force will hear initial comments from interested parties including NAMIC regarding the second draft of its Insurance Data Security Model Law when it meets on Aug. 27, during the... Read more

Group Capital Calculation Working Group: Work Continues on Aggregation Approach

August 24, 2016 Another workstream related to group supervision is the group capital calculation that is to be developed through the new Group Capital Calculation Working Group. In November 2015 the... Read more

Group Solvency Issues Working Group: Survey on Enterprise Risk Report

August 24, 2016 The first round of revisions to the Holding Company Act was adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. All states have... Read more

Infrastructure Investments &ndash; An NAIC Special Session

August 24, 2016 The Valuation of Securities (E) Task Force is holding a special session at the NAIC Summer National Meeting in San Diego about infrastructure investments. Recently, several policy-driven bodies, such as the U.S. Bipartisan Policy Center and the... Read more

No RBC or Blanks, But Plenty of Accounting Topics to be Debated in San Diego

August 24, 2016 Several working groups and task forces that normally meet will not conduct a meeting during the Summer National Meeting in San Diego. While the meeting agenda may be light on... Read more

TRIA Working Group to Discuss Status of State Terrorism Insurance Data Collection Effort

August 24, 2016 The Terrorism Insurance Implementation (C) Working Group will discuss the ongoing terrorism insurance data call that is being conducted jointly by all 50 states and the... Read more

Auto Insurance Working Group to Discusses Potential Affordability Study

August 24, 2016 Since the Federal Insurance Office disclosed in mid-July its long-awaited final plan to study the availability and affordability of auto insurance for racial minorities and low-to-moderate income... Read more

NAIC Exposes Second Draft of Cybersecurity Model Law

August 18, 2016 The NAIC&rsquo;s Cybersecurity (EX) Task Force has exposed for comment a second draft of its Insurance Data Security Model Law. Comments are to be submitted to... Read more

State Regulator Terrorism Insurance Data Call

August 10, 2016 Property/casualty insurers across the U.S. began receiving letters early last week from state insurance regulators regarding a terrorism risk insurance data call that is being administered jointly by all 50 states and the... Read more

NAIC Working Group Proposes Definition for ‘Big Data’ as Used by Insurers.

July 28, 2016 The NAIC’s Big Data (D) Working Group has proposed a definition of the term “big data” for its use as it continues to explore... Read more

At the NAIC: Property/Casualty Drafting Group to Review Investment Factors; Financial Analysis Handbook Overhaul Underway

July 14, 2016 The Investment Risk-Based Capital Working Group held on June 29 its first conference call since adopting an on how it plans to update the investment factors that are a part of the RBC capital formula. In addition to... Read more

NAIC Governance Panel Taking Input on NAIC Procedures

July 6, 2016 The NAIC’s Governance Review (EX) Task Force has invited comment from interested parties on possible NAIC administrative due process issues the task force should consider... Read more

NAIC Cybersecurity Task Force to Discuss Much-Maligned Data Security Model

June 16, 2016 The NAIC’s Cybersecurity (EX) Task Force has scheduled an open conference call for June 29 for regulators to discuss the Data Security... Read more

At the NAIC: Group Will Look at Life Company Investment Risk First; Inaugural NAIC Insurance Summit a Success; Actuarial Group to Look at Operational Risk

June 9, 2016 The National Association of Insurance Commissioners' Investment Risk-Based Capital Working Group held a conference call June 2 to discuss comments received related to the working group's plans to update the... Read more

At the NAIC: Risk-Based Capital &ndash; Potential Changes to Investment Risk Factors; A Higher Earthquake Standard Considered; Update to Operational Risk Factor

May 20, 2016 The NAIC working group charged with updating investment risk factors in the risk-based capital formula has exposed a document that discusses the guiding principles for the working group. The document proposes... Read more

NAIC Cybersecurity Task Force to Hold Two-Day Interim Meeting

May 5, 2016 The NAIC’s Cybersecurity (EX) Task Force will host a two-day interim meeting May 24-25 to take additional comments on its draft Insurance Data Security Model Law. NAMIC and other industry groups strongly urged the... Read more

NAIC Big Data Working Group to Plan Next Steps

May 5, 2016 The NAIC’s new Big Data (D) Working Group is pursuing an ambitious schedule following its inaugural meeting during the NAIC Spring National Meeting, with a conference call scheduled for May 9 to discuss... Read more

In the World: Where's the Transparency on Resolution at IAIS; IMF Reports Aggregate Life Insurance Industry Systemically Risky; Moody's Report Solvency II Ratios Not Comparable

April 22, 2016 There was a very brief update at the NAIC Receivership and Insolvency Task Force on Resolution and Recovery at the IAIS. James Kennedy of Texas, the NAIC representative on the IAIS working group, said... Read more

At the NAIC: Spring National Meeting Summaries

April 22, 2016 The NAMIC State &amp; Policy Affairs staff attended the National Association of Insurance Commissioners' spring meeting held April 2-6 in New Orleans. Please view the NAMIC Advocacy Recap Special Edition NAIC Review to learn about the latest... Read more

In the World: Where's the Transparency on Resolution at IAIS; IMF Reports Aggregate Life Insurance Industry Systemically Risky; Moody's Report Solvency II Ratios Not Comparable

April 22, 2016 There was a very brief update at the NAIC Receivership and Insolvency Task Force on Resolution and Recovery at the IAIS. James Kennedy of Texas, the NAIC representative on the IAIS working group, said that no specific information about the work can be s... Read more

NAIC 2016 Spring Meeting Tidbits

April 12, 2016 After the MetLife decision overruling the company’s designation as a SIFI, the Federal Reserve can only claim it supervises 12.6 percent of the insurance industry. State regulators thought 12.6 percent tattoos might be in order. NAMIC presented at the N... Read more

Financial Condition (E) Committee: New ‘Covered Agreement’ Charge

April 12, 2016 At the Financial Condition (E) Committee a discussion was held about the possibility of the U.S. Treasury entering into a “Covered Agreement” with the EU that would preempt state law related to the reinsurance collateral. While the NAIC made the decisio... Read more

Group Solvency Issues Working Group: Survey on Enterprise Risk Report; New ORSA Subgroup

April 12, 2016 The first round of revisions to the Holding Company Act was adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. All states have completed adoption of the 2010 revisions. This revision inc... Read more

Group Capital Calculation Working Group: Only Aggregation Approach of Interest

April 12, 2016 Another workstream related to group supervision is the group capital calculation that is to be developed through the new Group Capital Calculation Working Group. The NAIC ComFrame Development and Analysis (G) Working Group finalized a recommendation in ... Read more

Receivership, Insolvency Issues: Can Multiple Affiliated Companies be Included When Only One is Truly Insolvent?

April 12, 2016 Members of the Receivership Model Law Working Group agreed on priorities for the next year. They will work on guidelines for the implementation of Dodd-Frank at the state level, a study on insolvency of non-regulated entities, the need to include affili... Read more

The NAIC Plans to Enhance, Modernize How States Monitor Insurance Companies

April 12, 2016 At least two workstreams related to enhancing and modernizing how state insurance departments monitor insurance companies are underway at the NAIC. The first project, titled “Financial Analysis Risk-Focused Assessment Enhancements Project,” is intended ... Read more

Surplus Notes Rated NAIC 2 to Receive Amortized Cost Treatment

April 12, 2016 The Statutory Accounting Principles Working Group adopted revisions to SSAP No. 41R – Surplus Notes. The revisions change the measurement guidance of surplus notes to provide that if the surplus note has been rated by an NAIC credit rating provider with... Read more

Bonds ETFs: How to Measure, Where to Report

April 12, 2016 Exchange Traded Funds have been a hot topic for the better part of two years, and the Statutory Accounting Principles Working Group is looking at both the measurement approach and the reporting of these funds on the annual statement. While no decision o... Read more

Private Flood to be Reported Separately on Annual Statement

April 12, 2016 The Property and Casualty Insurance (C) Committee adopted a proposal related to the collection of private flood insurance data. The proposal would collect data on private insurance policies, including primary, excess, and creditor-placed flood insurance... Read more

Working Group to Determine If Investment Factors Should Be Same for Life, Health, Property/Casualty Formulas

April 12, 2016 When the Investment Risk-Based Capital Working Group met on April 4, a document that discusses the guiding principles for the working group was exposed for a 45-day comment period ending May 19. The document proposes an approach for possible revisions t... Read more

Cybersecurity Task Force Hears Concerns From NAMIC, Others on Draft Model Law

April 12, 2016 NAMIC and other industry groups expressed strong concerns to the NAIC’s Cybersecurity (EX) Task Force regarding its “Preliminary Working and Discussion Draft of the Insurance Data Security Model Law” during the task force’s meeting at the Spring Nationa... Read more

Proposal to Bar Sitting Commissioners From CEO Consideration Fails to Gain Support

April 12, 2016 A proposal by Louisiana Insurance Commissioner Jim Donelon to amend the NAIC’s bylaws so that a sitting commissioner could not become NAIC chief executive was discussed at an Executive Committee meeting and the meeting of the Governance Review (EX) Task... Read more

Property/Casualty Committee Hears Comments on NFIP Reform

April 12, 2016 NAMIC and other groups briefed the NAIC’s Property and Casualty Insurance (C) Committee regarding potential reforms to the National Flood Insurance Program, which is up for reauthorization in 2017. Several organizations including NAMIC stressed the need... Read more

Insurers’ Expanding Use of Data All About Innovation, Competition, NAMIC Tells Big Data Working Group

April 12, 2016 Regulators exploring insurers’ expanding use of large quantities of data should be ever mindful that such use takes place because insurers are innovating and competing, which ultimately benefits consumers, NAMIC advised the inaugural meeting of the Big ... Read more

Model Bulletin to Reduce Redundant Privacy Notices Adopted by Market Regulation Committee

April 12, 2016 The NAIC’s Market Regulation and Consumer Affairs (D) Committee adopted a model bulletin to allow insurance department licensees to take advantage of a change to the federal Gramm-Leach-Bliley Act providing that financial institutions do not have to sen... Read more

NAMIC Testifies Before Catastrophe Working Groups on Use of Drones Following Disasters

April 12, 2016 NAMIC staff made a presentation to a joint meeting of the NAIC Catastrophe Response and Post-Catastrophe Regulatory Guidance (C) working groups on insurer use of drones following disasters. NAMIC asked the working groups to work with the association to ... Read more

Earthquake Study Group Hears Presentation from NAMIC

April 12, 2016 At the request of the Earthquake (C) Study Group, NAMIC delivered a presentation on “Earthquake Risk Mitigation Practices” when the study group met on April 3. The request came from Oklahoma insurance commissioner and study group member John Doak. Oklah... Read more

Auto Insurance Working Group Discusses Work Plan, Risk Classification Survey

April 12, 2016 The Auto Insurance (C/D) Working Group had new leadership when it met on Aril 3. The group, which is now chaired by North Carolina Insurance Commissioner Wayne Goodwin and co-chaired by Oregon Insurance Commissioner Laura Cali, discussed its work plan f... Read more

TRIA Working Group to Explore State Terrorism Insurance Data Collection Effort

April 12, 2016 Although it is not formally a project of the NAIC, a proposal developed by a dozen states to jointly administer a terrorism insurance data call was the main item on the agenda of the Terrorism Insurance Implementation (C) Working Group at its meeting on... Read more

The ‘Flood’ of Supplemental Reporting Requirements Continue

March 31, 2016 New annual statement supplemental reporting requirements for flood insurance are the latest in a recent increase in supplemental reporting requirements. The NAIC has begun a trend of using the annual statement supplemental reporting as a means of collec... Read more

Financial Examination Coordination

March 31, 2016 A critical piece of the NAIC’s “risk-focused surveillance cycle” is the coordination between state insurance department analysts and examiners. A panel of regulators will listen to industry comments on why that coordination is lacking and why the propos... Read more

Risk-Based Capital Issues

March 31, 2016 The Investment Risked-Based Capital Working Group has been working on updates to the non-affiliate investment RBC charges for some time. First, working group members conducted an analysis of the common stock market to identify changes needed to the life... Read more

New Subgroup Created to Discuss ORSA Implementation

March 31, 2016 The Risk Management Own Risk and Solvency Assessment Model Act was adopted by the NAIC in September 2012. The act requires companies to file an annual ORSA Summary Report that includes a description of the enterprise risk management framework, an assess... Read more

Group Supervision Efforts Continue at NAIC

March 31, 2016 Another workstream related to group supervision is the group capital calculation that is to be developed through the new Group Capital Calculation Working Group. In November 2015, the NAIC ComFrame Development and Analysis (G) Working Group finalized a ... Read more

Holding Company Model Act 2010 Revisions Done? Maybe Not!

March 31, 2016 The first round of revisions to the Holding Company Act was adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. All states have completed adoption of the 2010 revisions. This revision inc... Read more

TRIA Working Group to Explore State Terrorism Insurance Data Collection Effort

March 31, 2016 Although it is not formally a project of the NAIC, a proposal developed by a group of 11 states to jointly administer a terrorism insurance data call will be discussed for the first time by the Terrorism Insurance Implementation (C) Working Group. The g... Read more

Auto Insurance Working Group to Discuss Work Plan, Risk Classification Survey

March 31, 2016 The Auto Insurance (C/D) Working Group will have new leadership when it meets for the first time in 2016. The group is now chaired by Commissioner Wayne Goodwin of North Carolina and co-chaired by Oregon Commissioner Laura Cali. When it meets on April 3... Read more

Earthquake Study Group to Hear Presentation From NAMIC

March 31, 2016 At the request of the Earthquake (C) Study Group, NAMIC will deliver a presentation on “How Insurance Regulators Can Better Educate Consumers on the Earthquake Claims Process and Earthquake Risk-Mitigation Practices” when the study group meets on April ... Read more

Property/Casualty Committee to Hear Comments on NFIP Reform

March 31, 2016 The NAIC’s Property and Casualty Insurance (C) Committee will hear comments from NAMIC and other interested parties regarding potential reforms to the National Flood Insurance Program. Pennsylvania Insurance Commissioner Teresa Miller, who was recently ... Read more

Big Data Working Group to Hold Hearing; NAMIC Will Participate

March 31, 2016 NAMIC will participate in an industry panel during a hearing of the NAIC’s newly formed Big Data (D) Working Group at the NAIC’s Spring National Meeting in New Orleans. The hearing will be the first meeting of the group that was formed following the ado... Read more

Cybersecurity Task Force to Discuss Model Draft Comments

March 31, 2016 The NAIC’s Cybersecurity (EX) Task Force will discuss comments received from NAMIC and other interested parties regarding its “Preliminary Working and Discussion Draft of the Insurance Data Security Model Law” when it meets on April 4, during the NAIC S... Read more

NAIC Panel to Hold Hearing on Insurers’ Use of Big Data

March 14, 2016 The NAIC’s newly formed Big Data (D) Working Group will hold a public hearing exploring various aspects of insurers’ use of “big data” on April 3 during the NAIC’s Spring National Meeting in New Orleans. According to the agenda circulated by the NAIC, t... Read more

NAIC Committee Proposes Adding Private Flood Line to Annual Statement

March 14, 2016 The NAIC’s Property & Casualty (C) Committee has proposed a set of changes to the Annual Statement to collect more information about companies’ private flood writings. The proposed revisions to the annual statement have been exposed for a shortened comm... Read more

Minnesota: NAMIC to Fight Politicized Auto Insurance Bill

March 14, 2016 The Minnesota version of California’s Prop 103 will be introduced March 14 in St. Paul and heard by the Senate Commerce Committee on March 16. NAMIC will be there to let lawmakers know the tremendous harm it inflicts on Minnesota's insurance market and ... Read more

NAIC Committee Seeking Information on NFIP Reforms

March 10, 2016 The NAIC’s Property and Casualty Insurance (C) Committee is seeking information from interested parties regarding potential reforms to the National Flood Insurance Program. Interested parties will be able to present ideas when the committee meets April ... Read more

At the NAIC: ORSA Subgroup Created; Form F Effectiveness Survey in the Works; Financial Analysis Overhaul Begins

March 10, 2016 The NAIC created an Own Risk & Solvency Assessment Subgroup to assist regulators on what they can expect on the ORSA filings. As the majority of states have adopted the ORSA Model Law and states are already receiving their first ORSA Summary Reports, th... Read more

Colorado: NAMIC-Supported NAIC Accreditation Bill Passes House, Sent Back to Senate for Concurrence

February 29, 2016 SB 29 , Own Risk and Solvency Assessment legislation, passed out of the House with only minor amendments that do not adversely impact the insurer confidentiality protections negotiated by the insurance industry as part of the drafting of the NAIC ORSA M... Read more

At the NAIC: U.S., Non-U.S. Catastrophe Event List Updated; New Alternatives for Operational Risk Suggested

February 11, 2016 The Catastrophe Risk Subgroup adopted the list of catastrophe events for 2015 for both U.S. and non-U.S. catastrophes. The lists are updated each year and used to compute both the R6 (earthquake) and R7 (hurricane) components of the RBC calculation. Whi... Read more

Hawaii: NAMIC Submits Testimony Opposing Bill Radically Changing How Insurers Address Catastrophe Risk Exposure

February 8, 2016 NAMIC has submitted written testimony in opposition to HB 2325 because the proposed Hawaii Mandatory Catastrophe Reserve Act proposal is entirely unnecessary, rife with public policy problems, and inconsistent with the national trend on enhancing solven... Read more

Hawaii: NAMIC Submits Written Testimony Opposing Mandatory Catastrophe Reserve Act

February 3, 2016 NAMIC submitted written testimony in opposition to SB 2854 because the proposed Hawaii Mandatory Catastrophe Reserve Act proposal is entirely unnecessary and inconsistent with the national trend on enhancing solvency protections. In its written testimon... Read more

At the NAIC: Property/Casualty Technical Group Looking at Investment Risk; Operational Risk Discussions to Begin Again; Group Capital Calculation Under Consideration

January 15, 2016 Members of the Property Casualty Risk-Based Capital Working Group have been meeting with industry experts for the past several months to determine the impact of a change in the investment RBC factors contained within the P/C RBC formula. The focus of di... Read more

NAIC Names Committee Chairs Including Several Changes

January 12, 2016 The National Association of Insurance Commissioners’ announced lineup of regulators to chair major “letter” committees during 2016 includes several changes, some of which are attributable to turnover in the ranks of regulators heading state insurance de... Read more

NAIC Adopts 'Roadmap for Cybersecurity,' Formerly Known as Bill of Rights

December 18, 2015 The NAIC Executive Committee/Plenary adopted the “NAIC Roadmap for Cybersecurity Consumer Protections,” formerly known as the Cybersecurity Bill of Rights, during a conference call on Dec. 17. The so-called Bill of Rights had been adopted by the organiz... Read more

NAIC Market Regulation Committee Adopts ‘Big Data’ Charge Proposal

December 14, 2015 The Market Regulation and Consumer Affairs (D) Committee voted unanimously on Dec. 11 to adopt a revised version of a proposed charge to explore “Big Data” issues that was put before the committee by a consumer representative with no notice to other int... Read more

At the NAIC: Fall National Meeting Summaries

December 10, 2015 The NAMIC State & Policy Affairs staff attended the National Association of Insurance Commissioners’ fall meeting held Nov. 19-22 in National Harbor, Md. Please view the NAMIC Advocacy Recap Special Edition NAIC Review to learn about the latest developm... Read more

In the Nation: Financial Experts Challenge FSOC’s Non-Bank SIFI Designation Process; House Approves the Policyholder Protection Act of 2015; NAMIC Engages in IAIS Discussions on HLA Requirement

December 10, 2015 The House Financial Services Subcommittee on Oversight and Investigations held a hearing on Nov. 19 that focused on the Financial Stability Oversight Council’s SIFI designation methodology. Jonathan Macey, Yale Law School professor, emphasized that FSOC... Read more

International Committee Recommends Developing Group Capital Calculation

November 24, 2015 As expected following a working group recommendation, the International Insurance Relations (G) Committee adopted a recommendation during the NAIC’s Fall National Meeting to develop a group capital calculation. The calculation, to be developed as a char... Read more

Property and Casualty Committee Adopts Charges Including Potential Commercial Lines Reform

November 24, 2015 The Property/Casualty (C) Committee approved charges including a proposal to explore expansion of commercial lines exempt commercial policyholder statutes during the NAIC’s recently concluded Fall National Meeting. The new charge directs the committee t... Read more

Governance Review Panel Approves Bylaw Change to Reduce Executive Committee Size

November 24, 2015 The NAIC’s Governance Review (EX) Task Force voted to adopted changes to the organization’s bylaws at the Fall National Meeting, including one that will reduce the size of the Executive Committee by removing past presidents except for the immediate past... Read more

Market Regulation Committee Approves First Tier Accreditation Requirements Despite Regulators’ Misgivings

November 24, 2015 Following an extended debate involving significant reservations held by regulators from several states, the Market Regulation and Consumer Affairs (D) Committee voted 9-2 to approve so-called “first tier” requirements for insurance departments to achiev... Read more

Market Regulation Committee Allows Comment on Surprise ‘Big Data’ Charge Proposal

November 24, 2015 The Market Regulation and Consumer Affairs (D) Committee will take comment on a proposed charge on “Big Data” issues that was put before the committee by a consumer representative with no notice to other interested parties. The charge proposed by funded... Read more

NAMIC Encourages NAIC to Act on Reinsurance Collateral

November 24, 2015 The long debate about collateral levels for alien reinsurers was settled in 2011 when the NAIC adopted changes to its Credit for Reinsurance Model Act to establish the collateral levels necessary based on financial strength. Since that time, 32 states h... Read more

Regulators Agree to Expand Bond Factors, For Now

November 24, 2015 When the Investment Risk-Based Capital Working met on Nov. 19, many topics were discussed related to the American Academy of Actuaries “Bond Report” on bond-based factors for life companies, including granularity of the factors and the data used in prod... Read more

Overhaul of Financial Analysis Envisioned

November 24, 2015 Members of the Risk-Focused Surveillance Working Group may finally be recognizing what industry has been harping about for the last several years: redundancies exist throughout the risk-focused oversight paradigm. When the working group met on Nov. 20, ... Read more

Disclosures Adopted for 2015 Reporting, Instructions Delayed Until 2016

November 24, 2015 Several new disclosure requirements were adopted by the Statutory Accounting Principles Working Group that will be effective for year-end 2015 reporting; however, companies impacted by these disclosures will have to visit the NAIC website if they want t... Read more

Terrorism Working Group Floats Data Collection Instrument

November 24, 2015 During its meeting on Nov. 19, the Terrorism Insurance Implementation (C) Working Group provided further details and insight regarding a new terrorism insurance data collection proposal that was unveiled by NAIC staff and a group of state regulators dur... Read more

Task Force Adopts Price Optimization White Paper

November 24, 2015 The process of drafting a white paper on price optimization that began in January finally concluded on the morning of Nov. 19, as the Casualty and Actuarial Statistical (C) Task Force made several non-trivial last-minute changes to the draft before voti... Read more

Auto Study Group Re-Exposes Data Survey, Holds ‘Public Hearing’

November 24, 2015 The Automobile Insurance (C/D) Study Group exposed for comment three items related to its proposed “data call template”: Issues Remaining on the Auto Insurance (C/D) Study Group’s Data Survey Overview of Auto Insurance (C/D) Study Group’s Data Survey on... Read more

Market Regulation Committee to Consider ‘First Tier’ Accreditation Requirements

November 18, 2015 The Market Regulation and Consumer Affairs (D) Committee will consider adoption of “first tier” requirements for state insurance department market regulation accreditation when it meets on Nov. 21 during the NAIC Fall National Meeting. The first tier re... Read more

Executive Committee May, or May Not, Consider Cybersecurity Bill of Rights

November 18, 2015 The NAIC’s Executive (EX) Committee had been expected to take up the so-called “Cybersecurity Bill of Rights” previously adopted by the Cybersecurity (EX) Task Force when it meets Nov. 20 during the Fall National Meeting in National Harbor, Md. However,... Read more

Property and Casualty Committee to Take Up Commercial Lines Reform Recommendations

November 18, 2015 The Property and Casualty (C) Committee will take up a referral from the Speed to Market (EX) Task Force regarding reform proposals for commercial lines when it meets Nov. 21. The proposals are the product of many months of deliberations by the Commerci... Read more

Legal Entity Capital Rules Chug Along as Group Capital Train Plans to Leave Station

November 18, 2015 Keeping with the theme of creating new group reporting schemes, several NAIC working groups continue to work on a proposal for a new group capital calculation , while ongoing maintenance work continues on the time-tested risk-based capital rules that ap... Read more

Disclosures: To Audit or Not to Audit

November 18, 2015 When the Statutory Accounting Principles Working Group meets on Nov. 19, financial statement disclosures will be a reoccurring topic. While many of these disclosures may not be subjected to the audited financial statements, there is such a thing as disc... Read more

Task Force to Consider Adoption of Price Optimization White Paper

November 18, 2015 Since early this year, the Casualty and Actuarial Statistical (C) Task Force has been developing a white paper on price optimization and its implications for insurance regulation. Now, after receiving dozens of comments on numerous drafts of the paper o... Read more

Auto Study Group to Consider Revised Data Template

November 18, 2015 The Automobile Insurance (C/D) Study Group will continue its deliberations regarding a proposed “data call template” when it meets on Nov. 19. The template is designed to elicit a vast quantity of information from insurers regarding their criteria for d... Read more

NAMIC Urges Senate to Take Up Policyholder Protection Act After House Passage

November 17, 2015 The National Association of Mutual Insurance Companies welcomed passage today of the Policyholder Protection Act by the U.S. House of Representatives and urged leaders in the Senate to advance the bill. Read more

At the NAIC: Key Committees Lay Out 2016 Work Plan; Influential Regulators Leaving NAIC; NAMIC Comments on NAIC Budget

November 13, 2015 The International Insurance Relations (G) Committee met Nov. 2 to approve a chart of Financial Sector Assessment Program recommendations and referred a number of matters to the appropriate Financial Condition (E) Committee working groups for considerati... Read more

At the NAIC: Bond Report Released; Group Capital Calculation Discussion Continues; Group Reporting Tool Re-exposed

October 9, 2015 The American Academy of Actuaries has proposed a new bond rating system that would expand the current NAIC six-class system to a 14-class structure for all fixed-income securities. NAMIC raised several concerns in a comment letter submitted to the NAIC ... Read more

FIO Releases Assessment of Natural Catastrophe Insurance

October 5, 2015 The Federal Insurance Office released a report Sept. 25 examining the current market for natural disaster insurance. The report, called for by the Biggert-Waters Flood Insurance Reform Act of 2012, sought to assess: The current condition of, as well as ... Read more

At the NAIC: Summer National Meeting Summaries

September 10, 2015 The NAMIC State & Policy Affairs staff attended the National Association of Insurance Commissioners’ summer meeting held Aug. 13-18 in Chicago. Please view the NAMIC Advocacy Recap Special Edition NAIC Review to learn about the latest developments at th... Read more

Cybersecurity Task Force Extends Comment Period for Draft Consumer Bill of Rights

August 25, 2015 The NAIC’s Cybersecurity (EX) Task Force has extended the deadline through which it will accept comments on its draft Cybersecurity Bill of Rights to Aug. 31 and has announced plans to take them up for consideration during a Sept. 8 conference call. Tho... Read more

Market Regulation Accreditation Working Group Discusses ‘First-Tier’ Elements

August 25, 2015 Members of the Market Regulation Accreditation (D) Working Group discussed but took no action on the recently developed set of “first-tier requirements” for market regulation accreditation. Working group Chairman Bruce Ramge, director of the Insurance D... Read more

Market Regulation Committee to Continue Inquiry Into Use of Data in Auto Claims

August 25, 2015 The public hearing held by the Market Regulation and Consumer Affairs (D) Committee during the NAIC’s summer national meeting apparently did not provide all the information sought by committee Chairman Stephen Robertson, insurance commissioner of Indian... Read more

Commercial Lines Working Group Recommendations, Report Accepted

August 25, 2015 The Speed to Market (EX) Task Force voted Aug. 16 to adopt the final report and recommendations from the Commercial Lines (EX) Working Group and also voted to disband the working group in recognition that it had completed its charges. The working group’... Read more

Financial Condition (E) Committee on Survey Responses, Role of FAWG

August 25, 2015 Over the last couple of months the NAIC Financial Condition (E) Committee issued a seven-question survey to solicit feedback from regulators and stakeholders regarding the procedures and practices of the E Committee, the use of statutory accounting and ... Read more

CDAWG Discusses Group Capital for All U.S. Groups

August 25, 2015 The NAIC ComFrame Development and Analysis (G) Working Group issued a discussion draft in July that provides a framework for considering the options for a U.S. group capital calculation. The document discusses three basic options for the valuation to be... Read more

ORSA Accreditation Decision Not Yet Made

August 25, 2015 While the Own Risk and Solvency Assessment Model Act has been enacted in 34 states to date it is not yet an accreditation requirement, meaning that all states are not yet required to enact the model act. That decision was expected at this meeting in the... Read more

U.S. Insurance Regulation Scoring by IMF Discussed

August 25, 2015 There was a detailed presentation in the International Insurance Relations (G) Committee meeting about the results of the 2015 U.S. insurance regulation Financial Sector Assessment Program conducted by the International Monetary Fund. See the NAMIC spec... Read more

Bond Factor Report Received; Municipals Don’t Get Carve Out

August 25, 2015 Several of the risk-based capital working groups that report to Capital Adequacy Task Force met in Chicago to discuss, among other things, components in the development of the catastrophe risk charge and other current factors within the property/casualt... Read more

Disclosures Related to Investments, Reserving Dominate Accounting Group

August 25, 2015 While the Financial Condition (E) Committee discussed the merits of statutory accounting, the task forces and working groups that report to the committee had several accounting and reporting and disclosure issues on the agenda in Chicago. All exposures ... Read more

NAIC to Tackle Multi-State Coordination Issues Related to Financial Examinations

August 25, 2015 The Examination Oversight Task Force proposed expanding its mission and adding new charges to the working groups that report to the task force. Examiners and analysts are charged with shifting toward a risk-focused approach to solvency regulation; howev... Read more

Task Force Discusses Public Access to Redacted Information in SERFF; Proposal Exposed for Comment

August 25, 2015 During its Aug. 16 meeting at the NAIC summer national meeting, the Speed to Market (EX) Task Force discussed a proposed “enhancement” to the System for Rate and Form Filing access program to provide public access to information about redacted file info... Read more

Task Force Exposes ‘Recommendations’ Section of Price Optimization Paper

August 25, 2015 As expected, the Casualty and Actuarial Statistical (C) Task Force discussed a draft of the “Recommendations and Next Steps” section of its white paper on price optimization. Unfortunately, the draft, which reflected comments the task force received fro... Read more

TRIA Blanks Supplement Rejected by Accounting Task Force

August 25, 2015 In a surprise move, the Accounting Practices and Procedures (E) Task Force voted to scuttle a controversial terrorism insurance Blanks supplement to the Annual Financial Statement. The proposed Blanks supplement had previously been adopted by the Blanks... Read more

Auto Study Group Exposes Data Template, Discusses FIO Affordability Study

August 25, 2015 For the second time in less than a year, the Automobile Insurance (C/D) Study Group voted to expose for public comment its proposed “data call template.” The template is designed to elicit a vast quantity of information from insurers regarding their cri... Read more

FIO Holds Meeting on Data Collection for New Annual Terrorism Insurance Report

August 17, 2015 The Federal Insurance Office hosted a stakeholder meeting Aug. 12 at the Treasury Department to discuss the collection of data needed for a new report on the terrorism risk insurance market required by the reauthorization of the TRIA program passed in J... Read more

Auto Study Group to Discuss Data Template, Consumer Reports Article

August 12, 2015 When it meets on Aug. 15, the Automobile Insurance (C/D) Study Group will be led for the third time in the last three NAIC national meetings by a different Massachusetts insurance commissioner. This time, it will be Daniel Judson, who was appointed to t... Read more

Property Casualty Committee to Hear Consumer Rep’s Take on Disparate Impact Case

August 12, 2015 Birny Birnbaum, the funded consumer representative well known to followers of NAIC matters, will make a presentation on the recent U.S. Supreme Court case to the NAIC’s Property and Casualty Insurance (C) Committee during the committee’s Aug. 17 session... Read more

Sharing Economy Working Group to Continue Consideration of Home-Sharing

August 12, 2015 The Sharing Economy (C) Working Group will continue its collection of information related to insurance aspects of home-sharing when it meets Aug. 15 during the NAIC’s summer national meeting. According to the working group’s agenda , it will consider th... Read more

Market Regulation Committee to Hold Hearing on Use of Consumer Data to Settle Auto Claims

August 12, 2015 Following up on a matter mentioned during the previous NAIC national meeting, the Market Regulation and Consumer Affairs (D) Committee will hold a public hearing on the use of consumer data to settle automobile insurance claims on Aug. 17 during the NAI... Read more

Market Regulation Accreditation Working Group to Discuss ‘First-Tier’ Elements

August 12, 2015 The Market Regulation Accreditation (D) Working Group will discuss a recently developed set of “First-Tier Requirements” for market regulation accreditation when it meets Aug. 15 during the NAIC summer national meeting. The first-tier proposal , which w... Read more

Cybersecurity Task Force to Consider Consumer Bill of Rights

August 12, 2015 The NAIC’s Cybersecurity (EX) Task Force will consider a recently drafted and exposed Cybersecurity Bill of Rights when it meets Aug. 16 during the summer national meeting. The Bill of Rights is the latest initiative undertaken by the task force since i... Read more

Blanks Working Group Tackles Cyber and Terrorism

August 12, 2015 Exciting times are expected in the Blanks Working Group at this meeting. Prior to the summer meeting, the working group adopted a new cybersecurity supplement aimed at collecting cybersecurity insurance market information. In a related issue, the workin... Read more

Statutory Accounting Principles Working Group Update

August 12, 2015 The Statutory Accounting Principles Working Group exposed several new proposals on its’ June 17 conference call, including potentially eliminating the Emerging Accounting Issues Working Group and requiring companies to file their investment schedules on... Read more

Risk Based Capital – Updates and Actions

August 12, 2015 At the summer NAIC meeting the Capital Adequacy Task Force will receive committee reports and discuss comments on revisions to its procedures. NAMIC joined industry comments on the proposed procedures for the Capital Adequacy Task Force, agreeing with t... Read more

Reinsurance Task Force to Meet in Chicago

August 12, 2015 The Reinsurance Task Force will meet at the NAIC summer meeting in Chicago and will discuss the status of states’ adoption of its 2011 revisions to the model act and regulations, the Federal Insurance Office plans to develop a trade agreement with the E... Read more

ORSA Moves Toward Accreditation

August 12, 2015 The Group Solvency Issues Working Group will discuss the feedback from the 2014 Own Risk and Solvency Assessment pilot project. While the 2014 submissions were much improved from prior years, the initial observations were that areas of improvement for t... Read more

Risk-Focused Surveillance Working Group to Meet in Chicago

August 12, 2015 For the first time the Risk-Focused Surveillance Working Group will meet at a national meeting. The working group will make another attempt at drafting a new Group Profile Summary to be used by analysts to provide a high-level overview of current and pr... Read more

Draft on Group Capital to be Discussed at CDAWG

August 12, 2015 The NAIC ComFrame Development and Analysis (G) Working Group issued a discussion draft in July that provides a framework for considering the options for a U.S. group capital calculation. The document discusses three basic options for the valuation to be... Read more

Financial Condition (E) Committee to Discuss Survey

August 12, 2015 Over the last couple of months the NAIC Financial Condition (E) Committee issued a seven-question survey to solicit feedback from regulators and stakeholders regarding the procedures and practices of the E Committee, the use of statutory accounting and ... Read more

Task Force Considers ‘Next Steps’ for Price Optimization Paper

August 12, 2015 The Casualty and Actuarial Statistical (C) Task Force will meet on Aug. 15 to discuss comments received regarding a critical section of its white paper on price optimization. The most recent draft of the paper , while representing an improvement over th... Read more

TRIA Data Collection is Subject of Blanks Proposal

August 12, 2015 The Terrorism Insurance Implementation (C) Working Group recently voted to refer a new blanks proposal regarding terrorism insurance to the Blanks (E) Working Group. The latter working group will discuss the proposal when it meets in Chicago on Aug. 15.... Read more

NAIC Committee Sets Public Hearing for Use of Consumer Data to Settle Automobile Insurance Claims

August 3, 2015 The National Association of Insurance Commissioners’ Market Regulation and Consumer Affairs (D) Committee will hold a public hearing on the use of consumer data to settle automobile insurance claims. The hearing will be held Aug. 17 from 8:30 a.m.-9:30 ... Read more

NAIC Taking Comments on ‘First Tier’ Market Regulation Accreditation Requirements

July 21, 2015 The NAIC’s Market Regulation Accreditation (D) Working Group is taking comments on a recently released set of “first tier” requirements for market conduct accreditation in a short time frame in order for consideration during the Summer National Meeting ... Read more

The Dodd-Frank Wall Street Reform and Consumer Protection Act at Five

July 21, 2015 The purported purpose of the Dodd-Frank Wall Street Reform and Consumer Protection Act was to promote financial stability by improving accountability and transparency in the financial system, to end “too big to fail,” to end bailouts, and to prevent abu... Read more

At the NAIC: Several Initiatives at the NAIC Are Picking Up Steam

July 10, 2015 Activity at the NAIC Financial (E) Committee has increased this summer as many task forces and working groups have issued or adopted new proposals. The committee has issued a seven-question survey to solicit feedback from regulators and stakeholders reg... Read more

NAIC Commercial Lines Working Group Issues Recommendations

July 2, 2015 The Commercial Lines Modernization (EX) Working Group has finalized its recommendations to its parent Speed to Market (EX) Task Force, recommending that the task force disband the working group upon completion of its charges. NAMIC has been an active pa... Read more

NAIC Panel Proposes Cyber Changes to Financial Exam Handbook Guidance

June 26, 2015 The NAIC’s IT Examination (E) Working Group has proposed a set of changes to the Financial Condition Examiners Handbook to make it consistent with the recently adopted Principles for Effective Cybersecurity Insurance Regulatory Guidance. The proposed re... Read more

At the NAIC: Proposed Group Profile Summary; Cybersecurity Insurance Supplement; Catastrophe Risk RBC Factor Development Continuing

June 11, 2015 NAMIC joined interested parties in May in submitting comments to the Risk-Focused Surveillance Working Group related to concerns over the new Group Profile Summary. The GPS was created to provide analysts a high-level overview of the current and prospec... Read more

At the NAIC: ORSA Confidentiality Raised in Accreditation; Comments to CDAWG; Capital Adequacy to Take Lead on Investment Affiliates

May 14, 2015 NAMIC submitted joint industry comments to the NAIC’s Accreditation (F) Committee on the confidentiality provisions in the model Own Risk and Solvency Assessment law. The industry is concerned about state legislatures amending the model language exposin... Read more

NAIC Cybersecurity Task Force Adopts Revised Regulatory Principles

April 17, 2015 The NAIC’s Cybersecurity (EX) Task Force voted unanimously to adopt a revised version of its quickly developed “Principles for Effective Cybersecurity Insurance Regulatory Guidance” during an April 16 conference call. The vote came just a little more th... Read more

NAMIC Submits Comments on NAIC’s Price Optimization White Paper

April 16, 2015 NAMIC submitted comments April 16 to the NAIC’s Casualty and Actuarial Statistics Task Force on its initial draft of a white paper on price optimization. In the comments, NAMIC describes the initial draft as a “promising start” toward developing a factu... Read more

In the Nation: Senate Hearing on SIFI Designations; Policyholder Protection Bill Gets Bipartisan Support; EU/U.S. Covered Agreements for Reinsurance Collateral

April 9, 2015 The Senate Banking Committee held a hearing on March 25 that focused on the Financial Stability Oversight Council’s designations of nonbank financial firms as systemically important financial institutions. NAMIC submitted a written statement differentia... Read more

At the NAIC: Spring National Meeting Summaries

April 9, 2015 The NAMIC State & Policy Affairs staff attended the spring NAIC meeting held March 27-31 in Phoenix. Please view NAMIC’s Advocacy Recap Special Edition NAIC Review to learn about the latest developments at the NAIC. Michelle Rogers Director of Financial... Read more

International Issues: Group Capital, 2015 FSAP

April 7, 2015 The International Association of Insurance Supervisors consultation draft of the Insurance Capital Standard was the topic of discussion in the ComFrame Development Analysis (G) Working Group. CDAWG submitted comments in February to the International Ass... Read more

Regulators Acknowledge Unlevel Playing Field Against Third-Party Examiners – ‘Can’t Compete on Salary’

April 7, 2015 As Risk-Focused Examinations continue to evolve, the levels of skills and expertise needed to perform a modern insurance examination are much greater today than in years past. And tomorrow? In 2015, all insurance companies with direct written premium ab... Read more

Market Regulation Committee May Explore Use of Data in Claims Settlements

April 7, 2015 Toward the end of a rather uneventful meeting of the Market Regulation and Consumer Affairs (D) Committee, Chairman and Indiana Insurance Commissioner Stephen Robertson raised an issue regarding claims settlement practices involving financial informatio... Read more

Regulators Poised to Move Fast on Cyber Security Initiatives

April 7, 2015 The first in-person and open meeting of the NAIC’s new Cybersecurity (EX) Task Force was packed with regulators and NAIC senior staff members who obviously are intensely interested in the issue following security breaches at health insurance companies a... Read more

RAA ‘Pre-Empts’ Reinsurance Task Force Meeting

April 7, 2015 One of the more interesting meetings during the NAIC Spring Meeting in Phoenix was the Reinsurance Task Force. The meeting started with updates on the adoption of the Credit for Reinsurance Model Act, which 26 states have enacted and two states awaiting... Read more

Sharing Economy Working Group Adopts TNC Issues White Paper

April 7, 2015 As expected, the Sharing Economy (C) Working Group adopted its white paper on insurance issues associated with transportation network companies when it met during NAIC Spring National Meeting. Prior to adoption the white paper was modified to make refer... Read more

Market Regulation Accreditation Working Group to Hold Interim Meeting on Proposal

April 7, 2015 The Market Regulation Accreditation (D) Working Group will hold an interim meeting in late April to allow for deliberations over its proposed market regulation accreditation program. The draft proposal was posted and emailed just three days prior to the... Read more

CAS Task Force Exposes Price Optimization White Paper

April 7, 2015 Shortly before its meeting on March 28, the Casualty and Actuarial Statistical (C) Task Force unveiled the initial draft of its white paper on price optimization. In discussing the draft, task force members revealed that they had received a private brie... Read more

Commercial Lines Working Group to Host Webinar on Interstate Compact

April 7, 2015 As it works to finalize its recommendations to its parent Speed to Market (EX) Task Force, the Commercial Lines (EX) Working Group will host a webinar April 7 on the Interstate Insurance Product Regulation Commission. The working group has been working ... Read more

Accreditation, Model Laws: Confidentiality Concerns

April 7, 2015 The first round of revisions to the Holding Company Act was adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. Since that time 45 states and Puerto Rico have enacted the revised model in... Read more

Auto Study Group Schooled on New Rating Tool

April 7, 2015 The Automobile Insurance (C/D) Study Group met on March 28 under the direction of new chair Gary Anderson of Massachusetts and co-chair Tom Glause of Wyoming. Both men are new to the task force, having recently been appointed as insurance commissioners ... Read more

Ceres to Coach Examiners on Climate Risk, Insurer Solvency

April 7, 2015 The Climate Change and Global Warming (C) Working Group met on March 28 and heard presentations from Munich Re and Ceres. In the first presentation, Carl Hedde of Munich Re discussed his company’s projections of “climate change impacts on North America,... Read more

Governance Review of NAIC Practices

April 7, 2015 The Governance Review (EX) Task Force met and provided updates on its progress with outside consultants, the National Association of Corporate Directors, in the review of the NAIC governance processes and procedures for adoption of model laws, regulatio... Read more

Group Solvency: Updates, Actions

April 7, 2015 In the Group Solvency Issues Working Group meeting, NAIC staff members provided an update on the 2014 ORSA pilot program. The review of the voluntary 2014 submissions is not yet complete, but they reported that 27 entities participated and 26 states wer... Read more

Risk-Based Capital: Updates, Actions

April 7, 2015 The Catastrophe Risk Subgroup continued to address the implementation of the catastrophe risk charges, R6 and R7, in the property/casualty RBC formula. The structure of the instructions and formula has to be adopted by the subgroup before April 30, so i... Read more

It May Be the End of Bond Treatment for ‘Funds’ As We Know It

April 7, 2015 As it continues its work on the investment classification project, the Statutory Accounting Principles Working Group exposed four discussion documents related to investments under Statement of Statutory Accounting Principles No. 26 – Bonds. With a comme... Read more

International Issues at the NAIC

March 25, 2015 Since the Fall National Meeting the International Association of Insurance Supervisors released its consultation draft of the Insurance Capital Standard. The ComFrame Development Analysis (G) Working Group submitted comments to the IAIS on the standard.... Read more

Sharing Economy Working Group to Consider Adoption of TNC Issues White Paper

March 25, 2015 The Sharing Economy (C) Working Group will consider adoption of a swiftly drafted white paper on insurance issues associated with transportation network companies when it meets on March 28 at the NAIC Spring National Meeting. The working group released ... Read more

Ceres Will Again Take Center Stage at Climate Change Meeting

March 25, 2015 The fall 2014 meeting of the Climate Change and Global Warming (C) Working Group was devoted entirely to a presentation from Ceres, the climate change advocacy group, regarding its report evaluating insurers’ responses to the questions contained in the ... Read more

Cybersecurity Task Force to Hold First In-Person Open Meeting

March 25, 2015 The NAIC’s new Cybersecurity (EX) Task Force will hold its first meeting on March 29 during the spring national meeting. The task force’s agenda indicates that it will consider comments submitted on draft principles for effective cybersecurity insurance... Read more

Industry Continues to Push for Change as Regulators Move to Improve Examiner Guidance

March 25, 2015 The Risk-Focused Surveillance (E) Working Group will have its first in-person meeting on March 29 to review comments on its exposure drafts for both the NAIC Financial Analysis and Financial Condition Examiners handbooks. As part of the efforts on the C... Read more

Risk-Based Capital Groups

March 25, 2015 The Operational Risk Working Group was created to develop a new operational risk Risk-Based Capital factor consistent with the factors used in countries around the world, most notably to be used under the Solvency II regime in the European Union. The OR... Read more

Auto Study Group to Discuss Data Template, New Rating Tool

March 25, 2015 The Automobile Insurance (C/D) Study Group will begin its meeting on March 28 by resuming a discussion of its proposed “data call template.” This will mark the first meeting of the study group under the direction of new chair Gary Anderson, who succeede... Read more

Commercial Lines Working Group to Continue Work on Recommendations

March 25, 2015 The Commercial Lines (EX) Working Group will continue its work on a draft of recommendations to its parent Speed to Market (EX) Working Group when it meets on March 27 during the NAIC’s Spring National Meeting. NAMIC’s focus regarding the proposed recom... Read more

New Accounting Standard for ‘Funds’ May be Coming

March 25, 2015 The Statutory Accounting Principles (E) Working Group plans to discuss several items of interest when it meets on March 28. What probably will receive the most discussion is the investment classification project, as staff was directed in December to pre... Read more

Report on Price Optimization is Focus of CAS Task Force

March 25, 2015 When the Casualty and Actuarial Statistical (C) Task Force meets on March 28, the main item of interest on its agenda for NAMIC members will be its discussion of price optimization – specifically, the white paper that it plans to develop on the subject.... Read more

Chair-less Market Regulation Accreditation Working Group to Consider Draft Proposal

March 25, 2015 The Market Regulation Accreditation (D) Working Group is scheduled to discuss a proposed draft accreditation program document when it meets on March 28 at the Spring National Meeting. Notably, the draft had not been exposed a week prior to the meeting. ... Read more

Confidentiality in Model Laws

March 25, 2015 The first round of revisions to the Holding Company Act was adopted by the NAIC in December 2010 in response to the financial crisis and the need for enhanced group supervision. Since that time 41 states and Puerto Rico have adopted the revised model in... Read more

Group-Wide Supervision Efforts at the NAIC

March 25, 2015 The NAIC finalized and approved another set of revisions to the Holding Company Act at the end of 2014 that would include criteria for a state regulator of a domestic holding company to be designated as a group-wide supervisor and itemized the authoriti... Read more

Provide Comments on NAIC Draft Cybersecurity Regulation Principles, Annual Statement Supplement

March 13, 2015 The National Association of Insurance Commissioners has exposed two draft documents related to cybersecurity for comment with a very short timeframe to allow for consideration at its Spring National Meeting at the end of March. One is a draft of Princip... Read more

At the NAIC: New Proposed Guidance for Insurance Examiners, Analysts; Informational Filing Almost Set for Reinsurance Credit Risk Factor

March 12, 2015 A group of insurance industry interested parties, including NAMIC, involved in identifying redundant reporting requirements, humorously named the “Redundancy Rangers” continue to urge consideration of the many redundant reporting requirements included i... Read more

At the NAIC: Commissioner Turnover; NAMIC Comments on Investment Affiliates RBC Issue; Other RBC Developments

February 12, 2015 There will be many new faces at the next NAIC meeting in March, as several prominent commissioner departures have taken place since the election late last year. One such departure is Michael Consedine. The Pennsylvania commissioner was on the executive ... Read more

NAIC Seeking Comment on Ride-Sharing White Paper Draft

January 27, 2015 The NAIC’s Sharing Economy Working Group has released for comment a draft white paper on ride-sharing. The white paper, which summarizes the policy aspects and particularly insurance issues related to ride-sharing, could be influential as many states ad... Read more

At the NAIC: Fall National Meeting Report; Group-Wide Supervision Adopted; NAMIC Comments on Group Capital

December 12, 2014 The NAMIC State & Policy Affairs staff traveled to Washington, D.C., for the NAIC Fall National meeting. Please view our NAMIC Advocacy Recap Special Edition NAIC Review to learn about the latest developments at the NAIC. Following the NAIC Fall Nationa... Read more

Officer Elections, Commissioner Departures

December 2, 2014 The NAIC elected new officers for 2015 at the Executive-Plenary meeting on the last day of its fall national meeting. There were no surprises for the offices of president, president-elect, and vice president as the existing officers advanced in the chai... Read more

Another Revision to the Holding Company Act, Group-Wide Supervision

December 2, 2014 Prior to the spring NAIC meeting at a Commissioner’s Roundtable, the NAIC leadership decided to advance new changes to the Model Holding Company Act. At the meeting they revealed their interest in adding language that would provide: 1) more clarity arou... Read more

Corporate Governance Models Now Fully Adopted

December 2, 2014 The Corporate Governance Annual Disclosure model act and model regulation was adopted at the NAIC Fall National Meeting by the Executive/Plenary Committee. NAMIC did not oppose the model act or model regulation in their final forms as many of the issues... Read more

Proposals to Amend Risk-Based Capital Requirements

December 2, 2014 The Property/Casualty RBC Working Group exposed a proposal that would change the risk-based capital factor applied to investment affiliates. Investment affiliates – those that exist only to invest the funds of the parent company – currently calculate RB... Read more

Collateral Reduction Should Be an Accreditation Mandate, Reinsurance Task Force Told

December 2, 2014 A representative of the Reinsurance Association of America told regulators on the NAIC’s Reinsurance (E) Task Force that the collateral reduction amendments to the Credit for Reinsurance Model Law should be made a mandatory accreditation standard rather... Read more

International Capital, Other Issues Are in Forefront at NAIC

December 2, 2014 International topics were discussed at several points during the Fall National Meeting. Topics included the efforts related to group capital, reduced participation for stakeholders at the IAIS, covered agreements (trade agreements) to adopt reinsurance ... Read more

Auto Study Group Discusses Data Template, Report Compendium

December 2, 2014 The Automobile Insurance (C/D) Study Group met on Nov. 16 and primarily discussed comments it received from regulators and interested parties, including NAMIC , in response to its proposed “data call template.” The template is designed to elicit a vast ... Read more

Statutory Accounting Update

December 2, 2014 In anticipation of adopting a substantively revised accounting standard for real estate investments by year-end, the Statutory Accounting Principles Working Group simultaneously exposed Issue Paper No. 149 and Statement of Statutory Accounting Principle... Read more

Ceres Presents Report Castigating Insurers on Climate Change

December 2, 2014 The meeting of the Climate Change and Global Warming (C) Working Group on Nov. 16 was devoted entirely to a presentation from Ceres, the climate change advocacy group that last month issued a report titled Climate Risk Disclosure Survey Report & Scoreca... Read more

Market Regulation Accreditation Working Group Holds First Meeting

December 2, 2014 The first in-person meeting of the Market Regulation Accreditation (D) Working Group during the NAIC’s Fall National Meeting was well attended by both regulators and attendees but noted for its lack of input from interested parties. Working Group Chair ... Read more

Catastrophe Insurance Working Group Forms Subgroup to Review 2012 Claims Issues Hearing

December 2, 2014 During its meeting at the NAIC’s Fall National Meeting, the Catastrophe Insurance (C) Working Group established a subgroup to review the “findings” of a December 2012 public hearing that examined post-event claims issues. Regulators indicated the subgro... Read more

Sharing Economy Working Group to Draft White Paper on Ride Sharing

December 2, 2014 The NAIC’s Sharing Economy (C) Working Group, which held its first meeting during the Fall National Meeting in Washington, D.C., plans to draft a white paper on ride sharing in time for it to be exposed at the Spring National Meeting in March 2015. Work... Read more

Actuarial Panel Hears Presentations on Price Optimization, May Consider Rule

December 2, 2014 The NAIC’s Casualty Actuarial and Statistical (C) Task Force heard presentations on price optimization from representatives of the Casualty Actuarial Society and American Academy of Actuaries during the NAIC’s Fall National Meeting. The CAS presentation... Read more

Corporate Governance Working Group

November 12, 2014 We anticipate that the Corporate Governance Annual Disclosure Model Act and model regulation will be adopted at the fall national meeting by the NAIC Executive/Plenary Committee. NAMIC did not oppose the model act or model regulation in their final form... Read more

Group-Wide Supervision Efforts at NAIC

November 12, 2014 Prior to the spring NAIC meeting at a commissioner’s roundtable, the NAIC leadership decided to advance new changes to the Model Holding Company Act. At the meeting leadership revealed its interest in adding language that would provide: 1) more clarity ... Read more

International Developments at NAIC

November 12, 2014 Since the summer national meeting the ComFrame Development Analysis Working Group held a half-day event for review of all significant proposals for a U.S Group Capital Standard. It considered proposals from several life and property/casualty companies. ... Read more

Data Template, Price Optimization, CARFAX Rating Tool Top Auto Study Agenda

November 12, 2014 The Auto Insurance (C/D) Study Group will be hard pressed to cover its entire ambitious agenda during its hour-long meeting on Nov. 16. The study group will first discuss the comments it received from regulators and interested parties, including NAMIC, ... Read more

Commercial Lines Modernization to Review Recommendations

November 12, 2014 The Commercial Lines (EX) Working Group will review comments on its draft recommendations to its parent Speed to Market (EX) Task Force when it meets Nov. 15. NAMIC submitted comments to the working group on Nov. 5 addressing two points in the draft rec... Read more

Risk-Based Capital Issues

November 12, 2014 The Investment Risk-Based Capital Working Group has been working on updates to the non-affiliate investment RBC charges for some time. At the summer national meeting the IRBCWG submitted a memo to Capital Adequacy seeking approval to coordinate with the... Read more

Climate Change Working Group to Receive Ceres’ Survey Report

November 12, 2014 The meeting of the Climate Change and Global Warming (C) Working Group on Nov. 16 will be devoted to two presentations. The working group will first hear from Howard Kunreuther on “Climate Change, Insurance and Behavioral Economics.” Kunreuther is a pro... Read more

Accounting Working Group to Debate Bond Classifications, Cash Flow Statement

November 12, 2014 The Statutory Accounting Principles Working Group plans to discuss several items of interest when it meets on Nov. 16. First, comments from interested parties on the prioritization document for the Investment Classification Review project will be discus... Read more

Industry Group to Strategize Next Steps in Eliminating Redundant Filing Requirements

November 12, 2014 At the last national meeting in Louisville, the Financial Condition (E) Committee issued a new charge to the Risk-Focused Surveillance Working Group. The charge is to review existing examination and analysis procedures to identify and eliminate redundan... Read more

Sharing Economy Working Group to Hold First Meeting

November 12, 2014 The working group created to address ride-sharing and related matters will hold its first meeting on Nov. 16 during the NAIC Fall National Meeting in Washington, D.C. The title of the working group, which was created by the Property and Casualty Insuran... Read more

Market Regulation Accreditation Working Group to Hold First Meeting

November 12, 2014 The Market Regulation Accreditation (D) Working Group, created at the NAIC’s Summer National Meeting, will have its first in-person meeting on Nov. 18, just prior to the meeting of its parent committee, the Market Regulation and Consumer Affairs (D) Com... Read more

Property/Casualty Committee to Hear Presentation on Emerging Technologies

November 12, 2014 The Property/Casualty (C) Committee will hear a presentation on emerging technologies and their potential impact on insurance when it meets Nov. 16 during the NAIC Fall National Meeting. The presentation will be given by Mike Fitzgerald of Celent. In wh... Read more

At the NAIC: ‘Redundancy Rangers’ Off to Fast Start; Group-Wide Supervision Efforts Continue; New Representative on FSOC

November 10, 2014 NAMIC participated in industry comments to the Risk-Focused Surveillance Working Group on potential redundancies in solvency monitoring efforts. The working group has acknowledged this is just the first step in an ongoing process to eliminate redundant ... Read more

NAIC: Commercial Lines Working Group May Call for Consideration of Interstate Compact

October 17, 2014 As it begins work on developing recommendations to its parent committee, the NAIC’s Commercial Lines (EX) Working Group is considering whether and how to make a recommendation relative to the development of an interstate compact for commercial lines. Th... Read more

At the NAIC: NAMIC Comments on Group-Wide Supervision; NAIC Capital Standards Hearing; Examiners/Analysts Communication Tool Enhanced

October 9, 2014 The NAIC Group Solvency Issues Working Group is moving forward with a proposed revision to the Holding Company Act to include the designation and iteration of authorities of a group-wide supervisor for international companies. The working group is striv... Read more

At the NAIC: Summer National Meeting Summaries

September 4, 2014 The NAMIC State & Policy Affairs staff attended the summer NAIC meeting held Aug. 15-19 in Louisville, Ky. Please view our NAMIC Advocacy Recap Special Edition NAIC Review to learn about the latest developments at the NAIC. Michelle Rogers Director of F... Read more

FSOC to Hold Closed Meeting

September 2, 2014 The Financial Stability Oversight Council has given notice that it will be holding a closed-session meeting on Sept. 4. According to FSOC, the agenda will address nonbank financial company designations, the council’s 2015 budget, asset management issues... Read more

Special Reporting Instruction Extends to Unrated Cat Bonds

August 25, 2014 The Valuation of Securities Task Force met during the NAIC’s Summer National Meeting and received proposals from the Securities Valuation Office to amend the Purposes and Procedures Manual of the Investment Analysis Office. One such amendment, out for a... Read more

RBC Working Groups Seek Feedback on Reinsurance, Cat Risk Issues

August 25, 2014 Included in the materials for the Property and Casualty Risk-Based Capital Working Group is its 2014 P/C RBC report – Attachment B that summarizes all changes in RBC that will be incorporated in the 2014 filings. This report is an excellent resource for... Read more

Accounting Group Proposes Several Tweaks to Promote Consistent Reporting

August 25, 2014 The Statutory Accounting Principles Working Group had a full agenda including a listing of hearing items and meeting items for discussion. The working group exposed a number of items under the meeting agenda that if adopted would revise existing account... Read more

Working Group to Expose Group-Wide Supervision Language

August 25, 2014 The Financial Condition (E) Committee voted in April to reopen the Model Insurance Holding Company System Regulatory Act (#440) to address revisions related to group-wide supervision. Prior to the NAIC’s Summer National Meeting, the Group Solvency Issue... Read more

Actuaries, Rating Agencies Weigh In on Climate Change

August 25, 2014 The Climate Change and Global Warming (C) Working Group heard two presentations from two entities that have been surprisingly absent from the NAIC’s discussions of climate change in recent years: actuary associations and rating agencies. In the first pr... Read more

Auto Study Group Discusses Price Optimization, Rating Template

August 25, 2014 The highlight of the Auto Insurance (C/D) Study Group’s meeting was its discussion of so-called price optimization, a subject that it has increasingly focused on in 2014. Before its meeting in Louisville, the study group held two meetings by conference ... Read more

Market Regulation Committee Votes to Create Accreditation Working Group; Draft Expected in Fall

August 25, 2014 The Market Regulation and Consumer Affairs (D) Committee voted Aug. 18 to create a working group to focus on the development of a market regulation accreditation program with an initial goal of developing a draft for presentation by the next NAIC nation... Read more

Internal Audit Function Requirement Adopted by Exec/Plenary

August 25, 2014 The Corporate Governance Working Group earlier this year finalized a revision to the Annual Financial Reporting Model Regulation (#205), also known as the Model Audit Rule. This revision included a requirement for all companies subject to the rule – tho... Read more

Resolution Plans Will Not be Required at This Time

August 25, 2014 The Receivership and Insolvency Task Force had a busy meeting including adopting new model guidelines, completing its charge related to resolution plans, and initiating a review of the uniformity of receivership/guaranty fund laws around the country. Th... Read more

International Capital Forum Motivates Team USA

August 25, 2014 The International Association of Insurance Supervisors has proposed group capital requirements for Globally Systemically Important Insurers and for internationally active insurance groups. Consultation on the GSII requirements just ended and is expected... Read more

Revised MCAS Attestation Adopted; Public Access Charge Referred to Parent Committee

August 25, 2014 The Market Analysis Procedures (D) Working Group adopted a revised attestation for the Market Conduct Annual Statement during its Aug. 17 meeting. NAMIC had submitted comments to the working group expressing concern with a few aspects of the proposed at... Read more

Corporate Governance Working Group Adopts New Model Disclosure

August 25, 2014 The efforts to create a corporate governance model act and model regulation culminated at the NAIC’s Summer National Meeting with adoption of both models at the working group and Financial Condition (E) Committee. The vote came with a commitment to addr... Read more

Property Casualty Committee Creates Catastrophe Response, Ride-Sharing Working Groups

August 25, 2014 The NAIC’s Property and Casualty Insurance (C) Committee created new working groups to address catastrophe response issues and ride-sharing during its Aug. 18 meeting. The ride-sharing working group will be chaired by California Insurance Commissioner D... Read more

Ride-Sharing is Focus of Industry Liaison Meeting

August 25, 2014 Insurance issues related to commercial ride-sharing services – formally known as “transportation network companies” – were the main topic on the agenda of the NAIC Industry Liaison Committee. Coming on the heels of a two-hour forum on the same topic les... Read more

Working Group to Consider Legal Authority of Group-Wide Supervision

August 14, 2014 The Financial Condition (E) Committee voted in April to reopen the Model Insurance Holding Company System Regulatory Act (#440) to address some additional revisions. Prior to the Summer National Meeting, the Group Solvency Issues Working Group exposed s... Read more

Valuation Task Force to Discuss Expansion of NAIC Designations

August 14, 2014 The Valuation of Securities Task Force will meet Aug. 17 to hear reports from the Invested Assets Working Group and the Securitization Data Quality Working Group. In addition, it will receive proposals from the NAIC Securities Valuation Office to amend ... Read more

Working Group Methodically Reviewing Investment Reporting

August 14, 2014 There are dual proposals currently exposed at the Blanks Working Group and Statutory Accounting Principles Working Group regarding instructions for derivatives investments. If adopted, the Annual Statement instructions would change by adding two footnot... Read more

Commercial Lines Working Group to Discuss Work Product

August 14, 2014 The Commercial Lines (EX) Working Group will discuss plans for issuing its report to its parent task force, the Speed to Market (EX) Task Force, when it meets Aug. 15 during the Summer National Meeting. The working group will also continue its discussio... Read more

Property Casualty Committee to Hear Presentation on Flood Model

August 14, 2014 The Property and Casualty Insurance (C) Committee will hear a presentation on the Applied Insurance Research inland flood model when it meets Aug. 18. The committee will also consider adoption of the Best Practices for Creating Consumer Online Insurance... Read more

Climate Change Working Group to Hear From Actuaries, Rating Agencies

August 14, 2014 The meeting of the Climate Change and Global Warming (C) Working Group will be devoted to two presentations. It will first hear from representatives of the Casualty Actuarial Society, the American Academy of Actuaries, and the Society of Actuaries, who ... Read more

International Issues to be Discussed in Separate Forum

August 14, 2014 The International Relations (G) Committee will conduct an International Capital Forum on Aug. 14 with all interested parties to discuss the U.S. policy on an international group capital requirement. The International Association of Insurance Supervisors... Read more

Capital Adequacy Task Force to Weigh-In on Investment Risk

August 14, 2014 The Investment Risk-Based Capital Working Group has been reviewing asset risk factors for some time. The working group issued a memo in late July to the Capital Adequacy Task Force requesting guidance on the degree to which asset risk factors should var... Read more

NAIC Staff, Regulators Huddle Privately to Prioritize Significant Investment Classification Project

August 14, 2014 Prior to the NAIC’s Summer National Meeting, the Statutory Accounting Principles Working Group conducted a regulator-only conference to strategize possible discussion topics regarding the Investment Classification Review Project, a comprehensive review ... Read more

Auto Study Group Meeting Has Full Agenda

August 14, 2014 The Auto Insurance (C/D) Study Group plans to discuss several items of interest when it meets on Aug. 16. First, like NAMIC and numerous other interested parties, the NAIC responded to the Federal Insurance Office’s request for comments on how to define... Read more

Market Regulation Committee to Discuss Accreditation Program

August 14, 2014 The Market Regulation and Consumer Affairs (D) Committee will discuss the development of a market regulation accreditation program when it meets on Aug. 18 during the Summer National Meeting. The committee adopted a new charge at the previous national m... Read more

Corporate Governance Annual Disclosure Likely to Move in Louisville

August 14, 2014 A three-year-in-the-making new requirement for all insurers will likely get a first vote at the Corporate Governance Working Group meeting on Aug. 17. The new disclosure is composed of a new model law authorizing the collection of the material and a mod... Read more

At the NAIC: Third-Party Governance Review; Group-Wide Supervision; Investment Issues; ORSA Developments

August 7, 2014 The NAIC Governance Review Task Force decided in July to engage a consultant to conduct a comprehensive review of its own governance and policymaking practices. The scope of work will include officer elections, committee assignment process, and other de... Read more

At the NAIC: Group-Wide Supervision, Reporting, Resolution Plan Exposures; Annual Statement Requirement

July 10, 2014 June was a busy month for NAMIC comments related to group-wide supervision, financial reporting, and resolution plans. The NAIC Group Solvency Issues Working Group had three exposures for comment and two hearings and the Receivership and Insolvency Task... Read more

At the NAIC: Group-Wide Financial Reporting, Supervision, and Resolution Plans; ORSA Examination Handbook

June 4, 2014 The National Association of Insurance Commissioners exposed two documents in May, one relating to changes to group-wide financial reporting requirements and the other involving group-wide supervisory authority for all holding companies. The financial re... Read more

NAMIC Supports Legislation to Clarify Federal Authority on Insurance

May 20, 2014 The National Association of Mutual Insurance Companies voiced strong support for legislation that would clarify oversight of some insurance-related financial entities by federal regulators and limit federal intrusion on insurance regulation at a May 20 ... Read more

At the NAIC: Risk-Based Capital Proposals; Executive Compensation

April 30, 2014 NAMIC led efforts on a joint property/casualty trade comment letter regarding the proposed Operational RBC charge developed by the Operational Risk Subgroup. The industry offered alternatives to the subgroup’s proposal for addressing operational risk. T... Read more

Companies Required to Report More Detail on Executive Compensation

April 16, 2014 The NAIC Blanks Working Group adopted changes to the Supplemental Compensation Exhibit to collect additional detail on the nature of compensation paid to top executives and directors for 2014 year-end reporting. The changes modify the exhibit to add new... Read more

At the NAIC: Spring National Meeting Report

April 10, 2014 The NAMIC State & Policy Affairs staff just returned from the spring NAIC meeting held in Orlando, Florida, March 28-April 2. Please view our NAMIC Advocacy Recap Special Edition NAIC Review to learn about the latest developments at the NAIC. Michelle R... Read more

Transparency Group Deliberates Over Internet Policy Form Guidance

April 9, 2014 The Transparency and Readability of Consumer Information (C) Working Group continued its months-long process of drafting a guidance manual for state insurance departments that wish to post insurer policy forms on their websites. At the Orlando meeting, ... Read more

Climate Change Working Group Discusses ‘Analytic Tools’ for Evaluating Climate Survey Responses

April 9, 2014 The Climate Change and Global Warming Working Group met for the first time as a sub-unit of the Property and Casualty Insurance (C) Committee. Previously the group was housed within the Financial Condition (E) Committee, and before that as a task force ... Read more

Auto Study Group Adopts Report, Discusses Ride-Sharing Programs

April 9, 2014 The Auto Insurance (C/D) Study Group held its first in-person meeting in Orlando under the direction of its new chair, Massachusetts Commissioner Joseph Murphy. A major item on the group’s agenda was to consider the adoption of a report prepared by NAIC... Read more

SAPWG Issue Paper to Document Investment Standard Project

April 9, 2014 NAIC staff has received comments and questions during the last few years regarding the definition and scope of the Statement of Statutory Accounting Principles dealing with bond and equity investments. At the NAIC’s fall national meeting the Statutory A... Read more

Other E-Committee Issues of Interest

April 9, 2014 There were no meetings of the ORSA subgroup, but some updates on the NAIC activities related to ORSA may be useful to members. The Risk-Focused Surveillance Task Force has exposed proposed revisions to the examination and analysis guidance manuals incor... Read more

Model Holding Company Act Reopened for Revision

April 9, 2014 The Executive Committee approved the reopening of the Model Insurance Holding Company System Regulatory Act to address revisions. The four issues to address are: 1. Addition of clear legal authority for state regulators to act as a group-wide supervisor... Read more

Adoption of Model Audit Rule Revisions

April 9, 2014 In addition to re-exposing the proposed model act in the Corporate Governance Working Group, the working group and the Financial Condition (E) Committee adopted revisions (see attachment 2) to the Model Audit Rule. The revisions will require companies a... Read more

Confidentiality Protection in Model Acts

April 9, 2014 Several NAIC model acts include confidentiality protection, but states do not always include the language in full when they enact the models. In 2014 there are several accreditation required models under consideration in the states for enactment, and co... Read more

Compensation Reporting for Top Executives Modified

April 9, 2014 The Blanks Working Group voted to adopt modifications to the annual supplemental compensation exhibit. The changes to the exhibit include collection of compensation data on an accrual basis; clarifications of the specific executives to which the exhibit... Read more

New Committee – CDAWG – to ‘Chew on’ International Proposals

April 9, 2014 The International Association of Insurance Supervisors began field testing at the end of March for both ComFrame and the Basic Capital requirement. The NAIC is very involved in the discussions regarding the parameters of these global standards. The new ... Read more

Capital Adequacy Expanding to Cat Risk, Operational Risk

April 9, 2014 The Cat Risk RBC Subgroup met in Orlando during the NAIC’s spring national meeting. Subgroup members discussed the initial evaluation of the informational year-end 2013 filing from insurers related to earthquake and hurricane risk. They re-exposed the i... Read more

NAMIC Addresses Risk Classification, Rate Regulation in Industry Liaison Meeting

April 9, 2014 During the Industry Liaison meeting on March 30, NAMIC provided regulators with its perspective on the way in which two issues – risk classification and rate regulation – were addressed in the Federal Insurance Office’s report on ways to modernize insur... Read more

Open Meetings Policy Revisions Adopted by Executive Committee

April 9, 2014 The NAIC Executive Committee and Plenary adopted proposed revisions to the organization’s Policy Statement on Open Meetings without amendment when it met on April 1. The revisions were presented by Missouri Insurance Director John Huff, who chaired an a... Read more

Market Regulation Committee to Pursue Accreditation Program

April 9, 2014 A charge to develop an accreditation program for market regulation was adopted by the Market Regulation and Consumer Affairs (D) Committee on March 31 and ratified on April 1 by the Executive Committee. The adopted charge directs the D Committee to “Dev... Read more

Responding to FIO Report, Market Regulation Committee to Survey States on Handbook Use

April 9, 2014 In response to a recommendation in the Federal Insurance Office report on the modernization of insurance regulation, the Market Regulation and Consumer Affairs (D) Committee will survey states on their use of the NAIC Market Regulation Handbook. The FIO... Read more

Commercial Lines Working Group Discusses Survey of States

April 9, 2014 The Commercial Lines (EX) Working Group reviewed the results of its survey of states regarding their experiences with commercial lines modernization laws and regulations when it met on March 28. During the meeting, NAMIC noted that three questions in th... Read more

NAMIC to Review FIO Report Issued During Industry Liaison Meeting

March 28, 2014 NAMIC and other trade associations will discuss various topics addressed in the Federal Insurance Office report on modernizing insurance regulation during the March 30 meeting of the Industry Liaison Committee. NAMIC will address the issues of rate mode... Read more

Market Regulation Committee to Discuss Priorities, Consider Accreditation Program

March 28, 2014 The first item on the agenda of the Market Regulation and Consumer Affairs (D) Committee for its March 31 meeting in Orlando is discussion of 2014 priorities. That discussion, to be led by Indiana Insurance Commissioner Stephen Robertson, is expected to... Read more

Executive Committee to Consider Revisions to Open Meetings Policy

March 28, 2014 Proposed revisions to the NAIC Policy Statement on Open Meetings will be considered by the Executive Committee and Plenary on April 1. The revisions, which were exposed for comment during the fall national meeting, represent a meaningful step in the rig... Read more

Proposed Adoption of Model Audit Rule Revisions

March 28, 2014 In addition to the proposed model act, the Corporate Governance Working Group has proposed revisions to the Model Audit Rule that will require companies above the premium threshold to create an internal audit function to provide independent assurance to... Read more

Investment RBC to Consider Property/Casualty Common Stock Factors

March 28, 2014 The Investment Risk RBC subgroup has been working on updates to the non-affiliate investment RBC charges for some time. The focus of the subgroup initially was on life insurer RBC investment factors. While the work on life company investment RBC continu... Read more

Confidentiality Protection in Model Acts

March 28, 2014 Several NAIC model acts include confidentiality protection, but states do not always include the language in full when they enact the models. In 2014 there are several accreditation required models under consideration in the states for enactment, and co... Read more

Holding Company Act Revisions

March 28, 2014 The Financial Condition (E) Committee voted prior to the NAIC’s Spring National Meeting to reopen the Model Insurance Holding Company System Regulatory Act to address some additional revisions. The Executive Committee will have to vote to approve the mo... Read more

Auto Study Group Will Examine Ride-Sharing Programs, Price Optimization

March 27, 2014 The Auto Insurance (C/D) Study Group will hold its first in-person meeting in Orlando under the direction of its new chair, Massachusetts Commissioner Joseph Murphy. Murphy previously served as vice chair; Wyoming Commissioner Tom Hirsig replaces Murphy... Read more

Climate Change Working Group Will Discuss ‘Analytic Tools’ for Evaluating Climate Survey Responses

March 27, 2014 The Climate Change and Global Warming Working Group will meet for the first time in its latest incarnation as an appendage of the Property and Casualty Insurance (C) Committee. Previously the working group operated under the auspices of the Financial Co... Read more

NAIC To Consider Adoption of Supplemental Compensation Requirement

March 27, 2014 The NAIC Blanks Working Group will vote on adoption of modifications to the annual supplemental compensation exhibit. The changes to the exhibit include collection of compensation data on an accrual basis; clarifications of the specific executives to wh... Read more

Statutory Accounting Proposing Overhaul of all Investment Standards

March 27, 2014 NAIC staff has received questions and comments over the years regarding various investment issues under the Statutory Accounting Principles. At the NAIC Fall National Meeting in Washington, D.C., the Statutory Accounting Principles Working Group exposed... Read more

Certain Real Estate Assets Could Benefit From Lower RBC Charge

March 27, 2014 The Capital Adequacy Task Force will be considering a referral from the Statutory Accounting Principles Working Group to comment on the RBC impacts of changes to accounting and reporting for real estate held in a limited liability company. The task forc... Read more

New Committees, Issues in International Insurance Relations (G) Committee

March 27, 2014 The G Committee will be receiving updates and reports regarding various international activities during the NAIC Spring National Meeting. IAIS field testing related to the consultation draft for both ComFrame and the Basic Capital requirement begins at ... Read more

Catastrophe RBC to Review Informational Filings

March 27, 2014 The Cat Risk RBC subgroup will be meeting in Orlando during the NAIC Spring Meeting. It will discuss the initial evaluation of the informational year-end 2013 filing from insurers related to earthquake and hurricane risk. See Compliance Alert for detail... Read more

Property Casualty Committee to Hear Presentation on Disaster Savings Accounts

March 27, 2014 The Property and Casualty (C) Committee will hear a presentation from Rep. Dennis A. Ross, R-Fla., regarding the Disaster Savings Accounts Act, H.R. 3989, of which Ross is a co-sponsor. NAMIC supports the legislation as a sensible means of encouraging d... Read more

Governance Review Task Force to Hold Inaugural Meeting

March 27, 2014 The NAIC’s newly formed Governance Review (EX) Task Force will hold its first meeting on March 31. The mission of the task force is to “review the NAIC’s governing documents, practices and procedures and potentially make recommendations to the Executive... Read more

Commercial Lines Working Group to Review Survey Results

March 27, 2014 The Commercial Lines (EX) Working Group will review the results of its survey of states regarding its experiences with commercial lines modernization laws and regulations when it meets on March 28. The survey results can be found here. NAMIC provided su... Read more

The NAIC: Commissioners Decide Controversial Accounting Rule; Catastrophe Risk, a New RBC Filing

March 4, 2014 The NAIC’s Executive Committee and Plenary met via conference call Feb. 19 to vote on statutory accounting guidance for fees required of health insurers under the Affordable Care Act. The committee decided to require the recognition of the full amount o... Read more

The NAIC: NAMIC Comments on Risk-Based Capital Proposals

February 7, 2014 In 2014 the NAIC is requiring informational reporting of the new hurricane and earthquake catastrophe risk-based capital factors – R6 and R7. Companies are required to file the report for the 2013 reporting year on an informational basis. NAMIC submitte... Read more

Flood Debate Will Continue After Recess

January 22, 2014 NAMIC notified members last week that Majority Leader Harry Reid, R-Nev., moved ahead on the procedural requirements to begin votes on S. 1846, The Homeowner Insurance Affordability Act. Because of the Senate’s unique rules, the bill did not make it to ... Read more

NAIC Policy Statement on Open Meetings

January 21, 2014 Statement by the National Association of Mutual Insurance Companies The National Association of Mutual Insurance Companies submitted a comment letter Jan. 20 to the National Association of Insurance Commissioners regarding the NAIC’s proposed changes to... Read more

NAIC Names Committee Leadership

January 15, 2014 The National Association of Insurance Commissioners has named its 2014 committee chairs and vice chairs, and assigned members to the organization’s standing committees. Notable among changes to the committee leadership is that Connecticut Insurance Comm... Read more

At the NAIC: Fall Meeting Model Exposures, Significant Debates

January 9, 2014 The NAIC Corporate Governance Working Group exposed revisions to the Model Audit Rule requiring companies with more than $500 million in DWP or groups with more than $1 billion in DWP to have an internal audit function. NAMIC coordinated joint industry ... Read more

NAIC: Changes to Model Audit Rule on the Way

December 20, 2013 As expected the Corporate Governance Working Group did take up NAMIC and industry comments on the new rules requiring companies above $500 million in DWP to have an internal audit function. Several comments from the industry were considered during the c... Read more

NAIC: Corporate Governance Model Exposed

December 20, 2013 Despite hearing unanimous objection from the industry on the new corporate governance disclosure model , the Corporate Governance Working Group exposed a new model for public comment. This new model is based on the idea of creating a bare-bones authoriz... Read more

NAIC: Executive Committee Considers, Rejects Independent Governance Review

December 20, 2013 The NAIC almost unfailingly conducts its public business with a semblance of consensus, but attendees of the Dec. 16 meeting of the Executive Committee were privy to a rare glimpse of acrimony among regulators over the NAIC’s own governance processes. T... Read more

NAIC: Market Analysis Panel Exposes Process to Add Lines to MCAS

December 19, 2013 The Market Analysis Procedures (D) Working Group agreed to expose a formalized process for the selection of new lines of business for the Market Conduct Annual Statement during the NAIC’s Fall National Meeting. The working group will take comments on it... Read more

NAIC Exposes Revisions to Open Meetings Policy

December 19, 2013 Substantial revisions to the NAIC Policy Statement on Open Meetings were approved for exposure and comment during the NAIC Executive/Plenary meeting on Dec. 18. The revised document was introduced by Missouri Director of Insurance John Huff, who is chai... Read more

NAIC: Telematics Conference Points to Challenges Ahead

December 19, 2013 The NAIC’s Center for Insurance Policy Research held a conference Dec. 16 on “The Future of Automobile Insurance: Telematics in the U.S.” The event featured speakers from Towers Watson, the U.S. Department of Transportation, the Association of Cooperati... Read more

NAIC: Auto Study Group Hears Conflicting Views on Affordability

December 19, 2013 The Auto Insurance (C/D) Study Group heard a presentation from the Insurance Research Council on trends in automobile insurance affordability. The presentation by Patrick Schmid, Ph.D., the IRC’s director of research, showed that auto insurance affordab... Read more

NAIC: Potential for Private Flood Insurance Explored

December 19, 2013 The potential for flood insurance to be provided at least in part by the private market rather than only by National Flood Insurance Program was the subject of discussion during more than one session of the NAIC Fall National Meeting. The issue was disc... Read more

NAIC 2014 Officer Elections

December 19, 2013 The officers at the NAIC generally move through the chairs of the Executive Committee into new positions each year. As expected all positions except for secretary/treasurer were uncontested. North Dakota Insurance Commissioner Adam Hamm was elected pres... Read more

NAIC Takes on FSOC, EIOPA, Own Leadership

December 19, 2013 The NAIC for the first time in years “exposed” a new attitude about its meetings. Connecticut Commissioner Thomas Leonardi delivered a speech at the Executive Committee urging that the NAIC was in need of significant governance re-evaluation and cited s... Read more

ComFrame: NAIC Submits Comments; Field-Testing Begins; Many Questions Remain

December 19, 2013 Preceding the NAIC Fall Meeting, the NAIC hosted a meeting focusing on the EU-U.S. dialogue, specifically on the effectiveness of supervisory colleges. This dialogue included panelist of regulators and companies from both jurisdictions and was a healthy... Read more

NAIC: Supplemental Compensation Exhibit Re-Exposed for Comment

December 19, 2013 The Blanks Working Group re-exposed a proposal Dec. 15 that would modify the supplemental compensation exhibit to collect additional detail on the nature of compensation paid to top executives and directors. The working group had adopted the same measur... Read more

NAIC: ACA Fees Not the Only Issue Facing the Statutory Accounting Principles Working Group

December 19, 2013 The Statutory Accounting Principles Working Group met on Dec. 15 to review comments on several issues that were previously exposed. Although accounting for the fees owed to the federal government under the Affordable Care Act may have stolen the show, a... Read more

NAIC: ACA fees a topic of great debate

December 19, 2013 There was a great deal of discussion and debate at several meetings about the appropriate methodology for booking the Affordable Care Act fees that health insurers will become liable for in 2014. The Statutory Accounting Practices Working Group adopted ... Read more

NAIC Clarification: Regulators Issue Guidance to Assure No ‘Surplus Bumps’ in Pension Plans

December 19, 2013 At the Emerging Accounting Issues Working Group meeting on Dec. 15, regulators adopted staff recommendations that would clarify the guidance in SSAP No. 92 – Accounting for Post-Retirement Benefits, Other Than Pensions and SSAP No. 102 – Accounting for ... Read more

NAIC: ORSA Legislative Push Begins

December 19, 2013 The Own Risk and Solvency Assessment model act was submitted for a one-year accreditation exposure by the Accreditation (F) Committee to determine if there are concerns about making this an accreditation requirement for all states to enact. For a peek i... Read more

NAIC: Catastrophe Risk RBC Informational Filings for 2013

December 19, 2013 The Catastrophe Risk RBC Subgroup discussed the informational filing requirements and adopted an attestation form that companies will need to revise. The group accepted many of the changes to the form NAMIC advocated earlier this year, but there were co... Read more

NAIC: Initiative to Facilitate Access to Market Regulation Information Advances

December 19, 2013 The Market Information Systems (D) Task Force discussed plans to meet its charge of enhancing public access to market regulation information and reached a consensus to do so by creating an interactive online map that would allow a user to access individ... Read more

NAIC: Commercial Lines Working Group Approves State Survey

December 19, 2013 During the NAIC’s Fall National Meeting, the Commercial Lines (EX) Working Group adopted its draft survey of states regarding its experiences with commercial lines modernization laws and regulations. NAMIC provided the working group with suggested quest... Read more

NAIC: Auto Study Group Will Learn of Improved Insurance Affordability

December 11, 2013 The Auto Insurance (C/D) Study Group will hear a presentation from the Insurance Research Council on trends in automobile insurance affordability. The presentation will be based on a recent IRC study that used the ratio of average auto insurance expendi... Read more

NAIC: Corporate Governance Group Take Another Shot at New Model

December 11, 2013 The long road of the NAIC Corporate Governance Working Group continues at the upcoming national meeting in Washington, D.C. As a reminder, the regulators have decided to develop a model law that requires companies to file an annual corporate governance ... Read more

NAIC: Property and Casualty Committee to Hear Presentations on Crash Data, NFIP Litigation

December 11, 2013 The Property and Casualty (C) Committee will hear a presentation about the use of automobile crash data retrieval systems when it meets on Dec. 17. Additionally, the panel will hear an update on litigation over reforms to the National Flood Insurance Pr... Read more

NAIC: Market Regulation Information Panels to Take Up Information Access, MCAS Process

December 11, 2013 The Market Information Systems (D) Task Force will discuss during its meeting on Dec. 16 plans to make public data collected in the NAIC Market Information Systems more widely available. It is expected that the discussion will move from using informatio... Read more

NAIC: Commercial Lines Working Group to Consider Adoption of State Survey

December 11, 2013 The Commercial Lines (EX) Working Group will consider adoption of its draft survey of states regarding their experiences with commercial lines modernization laws and regulations when the working group meets on Dec. 14. NAMIC provided the working group w... Read more

NAIC: Model Audit Rule Revisions

December 11, 2013 In addition to the proposed model act from the Corporate Governance Working Group, the working group has proposed revisions to the Model Audit Rule that will require companies above the premium threshold to create an internal audit function to provide i... Read more

NAIC: Investment Risk-Based Capital

December 11, 2013 The Investment Risk RBC subgroup has been working on updates to the non-affiliate investment RBC charges for some time. The focus of the subgroup was on life companies. While the work on life company investment RBC continues, the subgroup has begun the ... Read more

NAIC: Clarification of OPEB, Pension Transition Surplus Deferral

December 11, 2013 The Emerging Accounting Issues Working Group has proposed an interpretation of the guidance in SSAP No. 92 – Accounting for Postretirement Benefits, Other Than Pensions and SSAP No. 102 – Accounting for Pensions. SSAP Nos. 92 and 102 were adopted by the... Read more

NAIC: Working Capital Finance Investments

December 11, 2013 The Statutory Accounting Principles Working Group exposed for comment on Nov. 19 SSAP No. 105 – Working Capital Finance Investments. This new SSAP proposes to allow working capital finance investments to be admitted assets if specific criteria are met. ... Read more

NAIC: Affordable Care Act Fees

December 11, 2013 The most controversial issue for the Statutory Accounting Principles Working Group at the Summer National Meeting in Indianapolis dealt with the assessment owed to the federal government beginning in 2014 under the Affordable Care Act. At the meeting, S... Read more

NAIC: State Insurance Departments Challenge CFA Mythology

August 29, 2013 The Auto Insurance (C/D) Study Group was formed largely at the behest of the Consumer Federation of America, which over the past several months has released a series of “research” reports alleging that the nation’s largest auto insurers systematically o... Read more

NAIC: Climate Change Working Group Focuses on Flood Insurance Concerns

August 29, 2013 The Climate Change and Global Warming (E) Working Group voted to disband its two subgroups, one formed to explore possible revisions to the NAIC Insurer Climate Risk Disclosure Survey and the other formed to draft climate change-related content for incl... Read more

NAIC: Analysis of Transactional Level Data Discussed at Market Regulation Meeting

August 29, 2013 Though the topic was not on the agenda of the Aug. 26 meeting of the Market Regulation and Consumer Affairs (D) Committee, Indiana Insurance Commissioner Stephen Robertson, who serves as vice chair of the committee, asked staff to provide an update on t... Read more

NAIC: Market Analysis Panel to Develop Process for Adding Lines to MCAS

August 29, 2013 The Market Analysis Procedures (D) Working Group is working on developing a process for the selection of new lines of business to the Market Conduct Annual Statement and is accepting comments offering suggestions through Sept. 27. There was some disagre... Read more

NAIC: Market Regulation Reform Progress Reported from Legislator, Regulator Working Group

August 29, 2013 The joint NAIC/ National Conference of Insurance Legislators working group on market regulation reform is making progress, according to a report given during the Aug. 24 meeting of the NAIC/State Government Liaison Committee. Kentucky Insurance Commissi... Read more

NAIC: Adoption of White Paper on U.S. Solvency Modernization

August 29, 2013 The Solvency Modernization Initiative Task Force has been working on a white paper since 2008 to respond to the need to update or revise solvency regulation. The white paper summarizes the U.S. state-based insurance regulatory system as well as task for... Read more

NAIC: Reinsurance Collateral Efforts Move Forward

August 29, 2013 The NAIC Credit for Reinsurance Model Act adopted in 2011 called for the designation of qualified foreign jurisdictions whose domestic reinsurance companies would be considered for certification and reduced collateral requirements in the U.S. As part of... Read more

NAIC Discussions of U.S. GAAP, International Accounting for Insurance Contracts

August 29, 2013 The International Solvency and Accounting Standards Working Group held a session at the NAIC’s summer national meeting to discuss the June 2013 exposure drafts from international and national accounting standard setters to address accounting for insuran... Read more

NAIC: Financial Regulation Standards, Accreditation (F) Committee Adopts Holding Company Accreditation Standard

August 29, 2013 There are a series of accreditation requirements, including model laws and regulations, that states must enact/adopt to remain accredited with the NAIC. Accreditation by the NAIC is an important matter for state regulators and regulated companies since ... Read more

NAIC: Supplemental Compensation Revision First Adopted, Then Deferred

August 28, 2013 The Blanks Working Group voted on Aug. 24 at the NAIC summer national meeting to adopt modifications to the supplemental compensation exhibit to collect additional detail on the nature of compensation paid to top executives and directors. NAMIC particip... Read more

NAIC Debate Over Accounting for Health Insurer Fees

August 28, 2013 One of the most combative issues facing the Statutory Accounting Principles Working Group at the NAIC’s summer national meeting was the assessment owed to the federal government beginning in 2014 under the Affordable Care Act. Just before the meeting, S... Read more

NAIC: Regulators Take Up Corporate Governance Model Act

August 28, 2013 As expected, the Corporate Governance Working Group took up the industry draft model on Annual Corporate Governance Disclosure at its meeting on Aug. 25. NAMIC joined the other major trades (property/casualty, life, health, and reinsurance) in presentin... Read more

NAIC: Commercial Lines Working Group Plans Survey of States

August 28, 2013 The Commercial Lines (EX) Working Group plans to conduct a survey of state insurance departments to collect information regarding their experiences with commercial lines rate and form modernization and has set Sept. 23 as a deadline for accepting sugges... Read more

NAIC: Executive Committee Abolishes SERFF Board

August 28, 2013 In a move that was unwelcome but not unexpected, the NAIC Executive Committee voted on Aug. 24 to abolish the System for Electronic Rate and Form Filing Board of Directors to make way for its replacement by an advisory board with greatly reduced industr... Read more

NAIC: Climate Change Working Group to Focus on Flood Insurance

August 22, 2013 The Climate Change and Global Warming (E) Working Group is slated to hear two presentations involving flood insurance, according to the final agenda for the summer national meeting. One presentation will address “Mortgage Servicing: Flood Insurance Admi... Read more

NAIC: Market Regulation Developments to Include Report on State Confidentiality Laws

August 22, 2013 The Market Information Systems (D) Task Force will receive a report on the work of NAIC legal staff in reviewing state confidentiality laws as they relate to information collected in the Market Information System. The review is part of an initiative of ... Read more

NAIC: Commercial Lines Working Group to Consider Industry Concerns

August 22, 2013 The Commercial Lines (EX) Working Group will take up specific industry concerns about rate and form filing issues when it meets on Aug. 23. NAMIC previously submitted general comments on commercial lines modernization legislation and worked with other t... Read more

NAIC: Statutory Accounting to Expose Revised Affordable Care Act Fee Reporting

August 21, 2013 The most contentious accounting issue that the Statutory Accounting Principles Working Group will address at the summer meeting involves the Fees Payable to the Federal Government by Health Insurers. While this item applies exclusively to health insurer... Read more

NAIC: Executive Committee to Take Up SERFF Governance Proposal

August 21, 2013 The NAIC’s Executive Committee will consider a proposal to transform the System for Electronic Rate and Form Filing Board into an advisory committee with drastically reduced role for industry in overseeing SERFF at its meeting on Aug. 25. SERFF Board Ch... Read more

NAIC: International Solvency and Accounting Standards Working Group Will Focus on IASB, FASB Insurance Contracts Exposure Drafts

August 21, 2013 The International Solvency and Accounting Standards Working Group will have presentations from the life and property/casualty insurance industries regarding the International Accounting Standards Board and Financial Accounting Standards Board exposure d... Read more

NAIC: Catastrophe Working Group to Hear Presentation on Catastrophe Savings Accounts

August 21, 2013 The Catastrophe Insurance (C) Working Group will receive a presentation on catastrophe savings accounts when it meets on Aug. 25. The presentation is expected to be made by Kendall Buchanan of the South Carolina Department of Insurance regarding that st... Read more

Northeast Territory: NAIC Working Group Approves CAT Data Reporting Template

August 21, 2013 The CAT Working Group of the NAIC’s Northeast Zone – Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont – finalized changes to the CAT data reporting t... Read more

NAIC: Corporate Governance Working Group to Begin Work on Annual Disclosure Model Law

August 20, 2013 After working for more than two years the NAIC Corporate Governance Working Group will begin discussions in what will likely result in a new NAIC model law on corporate governance disclosure. In finalizing its first stage of work at the April 2013 meeti... Read more

NAIC: Auto Study Group to Unveil Survey Results on Insurance Affordability

August 20, 2013 The Auto Insurance (C/D) Study Group is set to discuss the preliminary results of a survey the group has sent to state insurance departments. When it last met during the NAIC Spring National Meeting, the study group voted to adopt and administer the sur... Read more

NAIC: Financial Regulation Standards and Accreditation (F) Committee to Adopt Holding Company Act Revisions as Accreditation Standard

August 20, 2013 The F Committee has the job of determining whether models developed will become accreditation standards required in all states. The process is long and drawn out including the development of significant elements of a model, a one-year accreditation expo... Read more

NAIC Reaching Decisions on Federal Home Loan Bank Lending to Insurers

August 20, 2013 The Federal Home Loan Bank state legislative initiative will be the topic of discussion at the Receivership and Insolvency Task Force – FHLB Subgroup and at the Statutory Accounting Principles Working Group meeting. The bank has pursued legislation in s... Read more

NAIC’s Northeast Zone CAT Working Group to Discuss Changes to Data Call Template

July 17, 2013 The NAIC’s Northeast Zone CAT Working Group will be discussing possible changes to the CAT data call template with the industry via a conference call on July 18. The proposed changes are highlighted on the template and summarized below: Zip code fields ... Read more

NAIC Model Holding Company, Own Risk And Solvency Assessment Update

June 21, 2013 In previous communications we reported on the NAIC adoption of the Model Insurance Holding Company System Regulatory Act/Regulations, also known as the HCA, and the Model Risk Management Own Risk Solvency Assessment Act, or ORSA. Since our last report s... Read more

NAMIC Participation in Catastrophe Risk RBC Subgroup

June 19, 2013 The Catastrophe Risk Risk-Based Capital Subgroup of the National Association of Insurance Commissioners has been working to finalize the 2013 information request to insurers that will provide valuable data for the development of a catastrophe-risk RBC f... Read more

NAMIC Submits Comments to NAIC on SERFF Governance

June 14, 2013 Any modifications to the manner in which the System for Electronic Rate and Form Filing is governed should retain meaningful industry participation, NAMIC asserted June 14 in comments submitted to the NAIC. Furthermore, any modification would have to oc... Read more

NAMIC Urges More Commercial Lines Modernization in Comments to NAIC

May 28, 2013 Enactment of more commercial lines modernization laws and more consistency among laws passed by various states would benefit commercial insurers as well as commercial insureds, NAMIC asserted in comments submitted to the Commercial Lines (EX) Working Gr... Read more

Solvency Modernization

April 15, 2013 The Solvency Modernization Task Force is the oversight group responsible for the activities at the NAIC on governance, enterprise risk management, capital requirements, group solvency, accounting, and reinsurance. The task force is working on a draft wh... Read more

Risk-Based Capital Activity

April 15, 2013 The Capital Adequacy Task Force has two specific risk-based capital charges on the agenda within different subgroups impacting property/casualty insurers – Catastrophe Risk RBC and Operation Risk RBC. The Catastrophe Risk RBC Subgroup has already approv... Read more

Federal Home Loan Banks Discussed in Working Groups

April 15, 2013 The Federal Home Loan Bank state legislative initiative was discussed at the Receivership and Insolvency Task Force – FHLB Subgroup, Statutory Accounting Working Group, the Financial Condition (E) Committee, and the NAIC Executive/Plenary meeting. The b... Read more

Statutory Accounting – Health Insurer Fees, Restricted Assets

April 15, 2013 One of the hot topics at the Statutory Accounting Practice Working Group discussion involved the Fees Payable to the Federal Government by Health Insurers (Ref. #2011-38). This topic was introduced as a result of the Affordable Care Act Section 9010. Un... Read more

GSIWG Exposes Roles, Responsibilities of Group Supervisors

April 15, 2013 The Group Solvency Issues Working Group met and discussed the accreditation of the ORSA Model Act and the Holding Company Model Act, but most significant development was the exposure of a lengthy document summarizing the Roles and Responsibilities of U.... Read more

Catastrophe Working Group Balks at Proposal to Draft Letter on National Cat Fund

April 15, 2013 In accordance with a listed agenda item, the Catastrophe Insurance (C) Working Group considered whether to ask the NAIC Government Relations Leadership Council to draft a letter regarding a national catastrophe fund during its April 7 meeting, but suppo... Read more

Consumer Groups International Involvement Supported by IAIS, NAIC

April 15, 2013 The NAIC decided last fall to financially support the NAIC-funded consumer representatives’ participation in committees of the International Association of Insurance Supervisors. The association budgeted $10,000 to defray travel costs. At the 2013 NAIC ... Read more

Regulators Seek Industry’s Top Market Regulation Items, Again

April 15, 2013 The joint NAIC and National Conference of Insurance Legislators working group on market regulation reform met in closed session during the Spring National Meeting and subsequently notified industry representatives that the regulators and legislators wou... Read more

Financial Regulation Standards and Accreditation (F) Committee Discusses Holding Company Act, ORSA, Other New Models

April 15, 2013 The F Committee met and received comments about the 2010 revisions to the Holding Company Act. NAMIC submitted comments and testified at the meeting about language added to the model in some states providing an exemption from the required Enterprise Ris... Read more

NAIC/Industry Liaison Committee Discusses International Issues, Group Supervision

April 15, 2013 This year the NAIC/Industry Liaison Committee meeting was moved to Saturday – right in the middle of all of the action at the spring meeting. The meeting included a Q&A with the International Association of Insurance Supervisor’s Secretary General Yoshi... Read more

Property and Casualty Committee Receives Report on Sandy Claims

April 15, 2013 More than 90 percent of all claims from Superstorm Sandy were closed as of the beginning of March, the Property and Casualty (C) Committee was advised during the Spring National Meeting. The 90.4 percent overall figure includes 93.9 percent of residenti... Read more

Climate Change Working Group Hears Ceres Report on Survey Responses

April 15, 2013 As we anticipated, the one-hour meeting of the Climate Change and Global Warming (E) Working Group’s was devoted almost entirely to a presentation by Andrew Logan of Ceres, who summarized the environmental shareholder activist group’s recent report on i... Read more

Auto Study Group Will Not Administer Risk Classification Survey

April 15, 2013 The Auto Insurance (C/D) Study Group voted to adopt a survey that will be administered to state insurance departments in an effort to identify initiatives undertaken by the states to address the availability and affordability of automobile insurance for... Read more

Survey of Confidentiality Laws Planned Prior to Making Market Regulation Data Public

April 15, 2013 The Market Information Systems (D) Task Force has directed NAIC staff to conduct a review of all state laws pertaining to confidentiality of market regulation information in the first step of a process to determine whether and how to make public data in... Read more

Corporate Governance Group to Create Stand-Alone Model Law

April 15, 2013 After many twists and turns over nearly two years, the NAIC Corporate Governance Working Group is finally taking action. It proposed to the NAIC Executive/Plenary Committee that a model law is needed to create a new annual corporate governance filing re... Read more

Commercial Lines Working Group Seeks Input on Improving Filing, Approval Process

April 15, 2013 The Commercial Lines (EX) Working Group has issued a request for comments from interested parties to make recommendations as to how the states can improve the filing and approval process for commercial lines filings. Comments are due by the close of bus... Read more

Model Audit Rule Revisions Approved for Development

April 15, 2013 One of the seemingly unrelated recommendations from the Corporate Governance Working Group was to recommend revisions to the Annual Financial Reporting Model Regulation (#205), the Model Audit Rule. The CGWG proposed that all companies subject to the ru... Read more

New Executive Committee Task Force on Financial Stability

April 15, 2013 Three years after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act and four years after the financial crisis, the NAIC has decided to establish a Financial Stability Task Force with the mission of considering issues affecting... Read more

A Failure to Focus on an Area of Vulnerability

April 5, 2013 by Paul Tetrault State & Policy Affairs Counsel The NAIC does a lot of stuff at each national meeting. The agenda for the Houston meeting covers six days of wall-to-wall sessions that run to seven pages of fine print with a schedule of meetings describe... Read more

Federal Home Loan Banks Discussed in Working Groups

April 5, 2013 The Federal Home Loan Bank state legislative initiative will be the topic of discussion at the Receivership and Insolvency Task Force – FHLB Subgroup and the SAPWG meeting. The bank has pursued legislation in some states that would prevent application o... Read more

Industry Liaison Committee to Discuss International Issues, Group Supervision

April 5, 2013 The NAIC’s Industry Liaison Committee has struggled for several years to get attention from regulators, usually scheduled on the last day of meetings, preceding the joint Executive-Plenary meeting. In the last couple of years the insurance industry has ... Read more

Statutory Accounting to Take Action on Health Insurer Fees, Restricted Assets

April 5, 2013 Prior to the spring meeting, the Statutory Accounting Principles Working Group closed the exposure period for a couple of new items. Most significant for NAMIC members are the Fees Payable to the Federal Government by Health Insurers (Ref. #2011-38) and... Read more

Market Regulation Panels to Consider Making Information More Widely Available.

April 5, 2013 The Market Regulation and Consumer Affairs (D) Committee and the Market Information Systems (D) Task Force that reports to it are expected to discuss during the NAIC’s spring national meeting two of the latter panel’s charges involving the availability ... Read more

Committee to Discuss Lessons Learned From Storm Sandy

April 5, 2013 The Catastrophe Insurance (C) Working Group is scheduled to take up the subject of “lessons learned from Superstorm Sandy” during its meeting on April 7, and presumably the subject will also be taken up by the full Property and Casualty Insurance (C) Co... Read more

Financial Regulation Standards and Accreditation (F) Committee to Discuss Holding Company Act, ORSA, Other New Models

April 5, 2013 The F Committee has the job of determining whether models developed will become accreditation standards required in all states. The process is long and drawn out including the development of significant elements of a model, a one-year accreditation expo... Read more

Where Will NAIC Go Next on Climate Change?

April 5, 2013 At the last national NAIC meeting in December, the Climate Change and Global Warming (E) Working Group succeeded in its effort to add climate-change-related questions and related content to the Financial Condition Examiners Handbook. The proposed change... Read more

Risk-Based Capital Activity

April 5, 2013 The Capital Adequacy Task Force has two specific risk-based capital charges on the agenda within different subgroups impacting property/casualty insurers – Catastrophe Risk RBC and Operation Risk RBC. The Catastrophe Risk RBC Subgroup has already approv... Read more

New Executive Committee Task Force on Financial Stability

April 5, 2013 Three years after the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act and four years after the financial crisis, the NAIC has decided to establish a Financial Stability Task Force with the mission of considering issues affecting... Read more

Corporate Governance Group to Recommend New Stand-Alone Model Law

April 5, 2013 After many twists and turns over nearly two years, the NAIC Corporate Governance Working Group has decided on a course of action. The group will recommend to the NAIC Executive Committee that a model law is needed to create a new annual corporate govern... Read more

Auto Study Group Seeks NAMIC Input on Auto Insurance Affordability, Availability

April 5, 2013 The Auto Insurance (C/D) Study Group has put together an ambitious agenda for its meeting in Houston. Attachment Three contains a copy of a letter NAMIC received on March 29 from the study group’s chair, Commissioner Therese Goldsmith. The letter asks N... Read more

NAIC: NAMIC Submits Testimony in Favor of Exemptions for Small and Non-Cat Insurers with NAIC Subgroup

February 18, 2013 The NAIC Catastrophe Risk Risk-Based Capital Subgroup developed an RBC charge for earthquake and hurricane risks that will apply after 2013. The group is considering the appropriate level to exempt companies from the requirements of applying the charge.... Read more

NAMIC Guidance on Upcoming LEI Implementation

February 14, 2013 In September 2012, the National Association of Insurance Commissioners added the Legal Entity Identifier (LEI) to insurance industry regulatory reporting required by the NAIC, effective with the first quarter filings of 2013 due March 1. For filings on ... Read more

Sen. Nelson Appointment as NAIC CEO

January 22, 2013 Statement of Charles M. Chamness President &amp; CEO National Association of Mutual Insurance Companies "As a state insurance regulator, governor, and U.S. senator, Ben Nelson has shown that he understands the role and value of free enterprise unburdene... Read more

News and Notes From the NAIC

December 5, 2012 Neil Alldredge I don’t have an inspired, pithy theme today so I’m going to take the easy way out. The ever-popular bullet-point News and Notes version of a column. I’ll try to weave in some pithy along the way…. Jim Donelon from Louisiana was elected as... Read more

Committee to Consider Making Public Market Information More Accessible

December 5, 2012 The Market Regulation and Consumer Affairs (D) Committee will explore possible ways to making market information that is currently public, such as completed exam reports and consumer complaint data, more accessible electronically, such as through the NA... Read more

NAIC Approves 2013 Budget After Adding $10,000 for Consumer Representatives’ International Travel

December 5, 2012 The NAIC’s 2013 budget was approved without dissent during the Dec. 2 Joint Executive (EX) Committee and Plenary meeting with a single addition, $10,000 budgeted for funded consumer representatives to travel to international insurance regulation meeting... Read more

Consumerists Rip Auto Insurance Study Group

December 5, 2012 When the NAIC created the Auto Insurance (C/D) Study Group at the beginning of 2012 to conduct research into “availability and affordability issues” of auto insurance for low-income drivers, it did so at the urging of the NAIC’s-funded consumer represen... Read more

Transparency Working Group Asked to Speed Up Progress

December 5, 2012 Since its last in-person meeting during the NAIC summer national meeting in August, the Transparency and Readability of Consumer Information (C) Working Group has continued to work on drafting various “consumer shopping guides” for homeowners and auto i... Read more

Market Regulation Survey of Industry Planned

December 5, 2012 A joint working group of the NAIC and the National Conference of Insurance Legislators plans to launch a survey of industry to gather data regarding market regulation issues that may call for reform. The survey has been in development for several months... Read more

Corporate Governance Proposals Delayed

December 5, 2012 In a surprise move, the Corporate Governance Working Group decided it needed more industry input on the new corporate governance initiatives currently under deliberation. The group voted to delay action and established a Jan. 18, 2013, deadline for more... Read more

Climate-Change Questions Will Be Included in Examiners Handbook

December 5, 2012 The Climate Change and Global Warming (E) Working Group met Dec. 1 mainly to hear a presentation from the Institute for Building and Home Safety on the IBHS’s efforts to promote strong building codes and encourage disaster-resistant structural design an... Read more

NAMIC Testifies on Post-Catastrophe Claims Issues

December 5, 2012 Participating in a Dec. 2 public hearing of the NAIC’s Property and Casualty (C) Committee on the subject of catastrophe claims issues, NAMIC cited evidence demonstrating insurers’ high level of performance in processing and paying property claims follo... Read more

NAMIC Testifies on Catastrophe Issues, Noting Insurers’ High Level of Claims Processing Performance, Citing Concern Regarding State Actions, Declarations

December 3, 2012 NAMIC State and Policy Affairs Counsel Paul Tetrault testified before the NAIC’s Property and Casualty Committee during a Dec. 2 hearing on catastrophe claims issues, telling regulators that insurers perform well in processing claims following catastrop... Read more

The Value of Unsolicited Advice

November 28, 2012 Neil Alldredge Given my well-earned skepticism and public criticism of all things NAIC, I realize I’m probably the last person that the NAIC’s leadership would seek out to advise it on its search for a new CEO. And I know full well the value of unsolici... Read more

Transparency Working Group Remains Focused on Shopping Guides

November 28, 2012 The Transparency and Readability of Consumer Information (C) Working Group will meet Thursday, Nov. 29. Since its last in-person meeting during the NAIC summer national meeting in August, the working group has continued to work on drafting various “cons... Read more

Auto Insurance Study Group to Discuss Research Methods

November 28, 2012 The Auto Insurance (C/D) Study Group will meet for the first time since voting to approve its work plan at the NAIC summer national meeting in August. The group has held no conference calls or interim meetings since the summer meeting. When it meets on ... Read more

November 28, 2012 The Market Regulation and Consumer Affairs (D) Committee will hear comments from computerized claim systems vendors regarding their systems and insurance company use of these systems during its Dec. 1 meeting. It is expected that representatives of vend... Read more

Corporate Governance Working Group Will Likely Set Course

November 28, 2012 The NAIC Corporate Governance Working Group has been deliberating for more than a year on a variety of proposals, and a copy of the latest can be found here. NAMIC has been leading industry opposition throughout, and the good news is that the entire ind... Read more

Working Group Will Consider Climate-Change Additions to Examiners Handbook

November 28, 2012 The Climate Change and Global Warming (E) Working Group will meet Saturday, Dec. 1 to review changes to the Financial Condition Examiners Handbook that have been proposed by the Impact of Climate Change Exam Subgroup, one of two subgroups formed by the ... Read more

Committee to Hold Public Hearing on Catastrophe Claims Issues

November 28, 2012 The Property and Casualty Insurance (C) Committee will hold a public hearing on catastrophe claims issues on Dec. 2 during the NAIC fall national meeting. The hearing will have two components, one focusing on insurer practices and the other addressing r... Read more

NAMIC Comments on NAIC Proposed Budget

November 12, 2012 In comments submitted on Nov. 9, the National Association of Mutual Insurance Companies (NAMIC) expressed concern with various aspects of the National Association of Insurance Commissioners' proposed 2013 budget, which will be the subject of a public he... Read more

Summary of NAIC's Northeast Zone CAT Working Group Conference Call on Draft CAT Reporting Form

October 12, 2012 NAMIC participated in a conference call this morning with the CAT Working Group of the NAIC's Northeast Zone about its draft CAT reporting form. A summary of the meeting can be found here. Should you have any further questions, please contact me at (317... Read more

NAIC's Northeast Zone Cat Working Group Soliciting Feedback on Draft CAT Reporting Form

October 8, 2012 The NAIC's Northeast Zone's CAT Working Group has asked NAMIC and other industry groups for comments on this draft CAT Reporting Form. The draft draws upon the information Connecticut requires carriers to provide but augments it by seeking information b... Read more

NAIC Adopts ORSA

September 13, 2012 The National Association of Insurance Commissioners voted via conference call late yesterday afternoon to adopt the Own Risk and Solvency Assessment model. This new model law now goes to the states for legislative adoption. If adopted, the ORSA filing w... Read more

An Unexpected Turn of Events

August 16, 2012 Neil Alldredge, Since Terri Vaughan became CEO of the NAIC back in 2009 I’ve written several times about her influence on or involvement in various issues. Her announcement to step down in February 2013 was the big news coming out of Atlanta, and, simpl... Read more

Public Hearing on Catastrophe Claims Planned, But Scope Uncertain

August 16, 2012 Mississippi Insurance Commissioner Mike Chaney, chair of the Property and Casualty Insurance (C) Committee, confirmed during the committee’s Aug. 13 meeting that the panel would hold a public hearing on catastrophe claims practices during the NAIC’s Fal... Read more

Market Regulation Reform Efforts Discussed

August 16, 2012 Recent steps toward reforming market regulation were discussed at the Aug. 13 meeting of the Market Regulation and Consumer Affairs (D) Committee. Committee chair Commissioner Sharon Clark of Kentucky reported that the results of the survey of state ins... Read more

Climate Change Working Group Stymied by Definitional Problem

August 16, 2012 In a meeting that was largely transactional, the Climate Change and Global Warming (E) Working Group voted to accept status reports from its two subgroups. Only the subgroup charged with considering the addition of climate-change-related content to the ... Read more

NAMIC Cites Concerns Regarding Initiative to Use SERFF for Public Access to Filings

August 16, 2012 During the Aug. 13 public hearing of the Speed to Market (EX) Task Force, NAMIC and other industry groups raised a number of questions and concerns regarding the potential use of the System for Electronic Rate and Form Filings for public access to produ... Read more

Auto Insurance Study Group Adopts Work Plan

August 16, 2012 The Auto Insurance Study (C/D) Study Group voted at its meeting on Aug. 14 to adopt its proposed work plan to examine availability and affordability issues for low-income consumers of automobile insurance. The vote followed a discussion of comments rece... Read more

Corporate Governance Proposal Formally ‘Exposed’

August 16, 2012 Without making any changes to the proposal , the Corporate Governance Working Group voted to formally expose the draft in Atlanta. The proposal will now be subject to a 45-day comment period. NAMIC will file comments on the proposal – primarily that a g... Read more

Significant Progress Made on ORSA

August 16, 2012 As highlighted in the NAIC Preview, NAMIC and the entire insurance industry have been strongly advocating for changes to the new Own Risk Solvency Assessment, or ORSA, for some time. In a fairly sudden positive movement – most of those changes will be a... Read more

Corporate Governance Proposals Cause Concern

August 9, 2012 For more than a year NAMIC has worked to focus the efforts of the NAIC Corporate Governance Working Group to develop a resource guide for regulators that details all the existing corporate governance laws and regulations that are currently on the books.... Read more

ORSA on My Mind

August 9, 2012 Neil Alldredge, As we head into another NAIC national meeting, I’ve been spending a considerable amount of time working on the new Own Risk Solvency Assessment. This is a new requirement that all companies writing about $500 million in DWP will have to ... Read more

Auto Insurance Study Group Aims to Finalize Work Plan

August 8, 2012 At the NAIC spring national meeting in New Orleans, regulators unexpectedly announced the formation of a new working group whose purpose is to study “the auto insurance markets, with a focus on reviewing issues relating to low-income households.” The wo... Read more

P/C Committee to Provide Information on Catastrophe Claims Public Hearing

August 8, 2012 During its meeting on Aug. 13, the Property and Casualty Insurance (C) Committee will provide information on a public hearin g on catastrophe claims, taking a step in fulfilling a new charge adopted at the NAIC’s Spring National Meeting. The charge adop... Read more

Discussion on Enhancing State Market Regulation Planned

August 8, 2012 The Market Regulation and Consumer Affairs (D) Committee is scheduled to have a policy discussion about ways to enhance state market regulation during its Aug. 13 meeting. The potential discussion topics on the committee’s agenda include: reporting of s... Read more

Climate Change Working Group Will Consider Additions to Examiners Handbook

August 8, 2012 The Climate Change and Global Warming (E) Working Group consists of two subgroups: one is charged with considering whether changes should be made to the NAIC’s Insurer Climate Risk Disclosure Survey, while the other has been asked to determine whether c... Read more

Public Hearing Planned on ‘Leveraging’ SERFF for Public Access to Filings

August 8, 2012 The Speed to Market (EX) Task Force will hold a public hearing Aug. 13 to consider the issue of “leveraging” the System for Electronic Rate and Form Filings for public access to product filings. NAMIC will testify at the hearing, raising issues related ... Read more

Washington: Repeal of Insurance Premium Tax Credit Under Insurance Guaranty Association Act Dies in Committee

February 7, 2012 SB 6299 , which would have repealed the insurance premium tax credit under the Washington Insurance Guaranty Association Act, died last week in the Senate Committee on Financial Institutions and Housing &amp; Insurance. SB 6299 would have repealed RCW 4... Read more

Postal Overhaul Slowed by Costly CBO Score

February 7, 2012 The bipartisan overhaul of the U.S. Postal Service that the Senate was hoping to quickly move through the chamber has been slowed by a Congressional Budget Office score estimating the bill might lose $6.3 billion over 10 years. The bill’s path to passag... Read more

Washington: Senate Committee Hearing Today on Repeal of Insurance Premium Tax Credit Under Insurance Guaranty Association Act

January 31, 2012 The Senate Committee on Financial Institutions and Housing &amp; Insurance will hold a hearing today on SB 6299 that would repeal the law that allows insurers that have paid one or more assessments to the Washington Insurance Guaranty Association to off... Read more

Social Media White Paper Receives Initial Approval

January 10, 2012 The NAIC Social Media (D) Working Group met by conference call Dec. 20 and adopted the white paper it was charged with developing early in 2011. The working group had exposed several drafts of the paper titled “The Use of Social Media in Insurance” and ... Read more

Ramblings from Another NAIC Meeting

November 9, 2011 Neil Alldredge, I usually have something specific I want to cover in this space after an NAIC meeting, but in this case I just have some random notes and thoughts. While there were certainly relevant developments – please note Dan Daveline’s coverage of... Read more

More Big News to Come

November 9, 2011 At the end of the (D) Committee meeting on Saturday morning, Committee Chair Sharon Clark of Kentucky told the audience that an important new NAIC plan related to enhanced uniformity and increased efficiencies in the market regulation arena would be ann... Read more

Complaint Reconciliation Proposal

November 9, 2011 The Market Regulation & Consumer Affairs (D) Committee met Saturday morning and adopted the pending Complaint Reconciliation Proposal. The proposal arose out of a 2006 charge to the (D) Committee to monitor and evaluate states’ accurate submission of da... Read more

Social Media Working Group

November 9, 2011 The Social Media (D) Working Group met Thursday and continued its discussion of a draft white paper on the use of social media by insurance companies and producers. The current draft – dated Oct. 28 – is the third draft released as part of the developme... Read more

Transparency Working Group Discusses Policy Accessibility, ‘Reputational Fines’

November 9, 2011 In a series of conference calls held since the NAIC spring national meeting in Austin, the Transparency and Readability of Consumer Information (C) Working Group’s discussions have focused on the drafting of a “best practices” manual to help state insur... Read more

Producer Licensing

November 9, 2011 The Producer Licensing (EX) Task Force met Friday and once again discussed and considered adoption of the eight proposed Uniform Producer Licensing Standards relating to business entity licensing. The proposed standards were developed by the producer tr... Read more

Market Information Systems (D) Task Force

November 9, 2011 The Market Information Systems (D) Task Force met Friday afternoon and spent considerable time receiving reports summarizing the Market Conduct Annual Statement Centralization Project from NAIC staff. Both the staff and Task Force Chair John Huff of Mis... Read more

Market Conduct Annual Statement

November 9, 2011 The Market Analysis Procedures (D) Working Group met on Friday during the NAIC fall meeting in National Harbor. The working group continued its discussions about long-term care coverage, a new line to be added to MCAS; and health insurance, a line that ... Read more

Climate Change Working Group Informed of Muni Bond Risk

November 9, 2011 The Climate Change and Global Warming (E) Working Group heard a presentation from Sharlene Leurig of Ceres that reviewed the group’s report on insurer responses to the NAIC’s Insurer Climate Risk Disclosure Survey. Ceres is the self-described environmen... Read more

SSAP No. 101-Income Taxes Adopted

November 9, 2011 The NAIC Plenary also adopted as expected its revised SSAP No. 101-Income Taxes. The adopted standard remains the same as what was adopted by the Financial Condition (E) Committee Sept. 19, and includes the changes that were supported by NAMIC, includin... Read more

ORSA Guidance Manual Adopted

November 9, 2011 One of the most significant changes the NAIC has been pursuing within its Solvency Modernization Initiative, the Own Risk and Solvency Assessment, was adopted as expected by the Solvency Modernization Initiative (EX) Task Force. The NAIC has said that i... Read more

Reinsurance Modernization Adopted

November 9, 2011 As expected, but perhaps with some uncertainty over the last couple of weeks, the NAIC Plenary adopted revised reinsurance collateral requirements in the form of changes to the NAIC’s Credit for Reinsurance Model Law (Model #785) and Credit for Reinsura... Read more

Social Media Working Group

November 1, 2011 The NAIC’s Social Media (D) Working Group, newly formed in 2011, has been working on a white paper on the use of social media by insurance companies and producers. When the working group meets in National Harbor, it will continue its discussions on the ... Read more

Transparency Working Group to Discuss Premium Comparison, Policy Accessibility

November 1, 2011 The Transparency and Readability of Consumer Information (C) Working Group has held a dozen conference calls since it first met at the NAIC spring meeting in Austin. The teleconferences have consisted entirely of discussions related to the development o... Read more

Climate Change Working Group to Discuss Muni Bond Risk

November 1, 2011 The Climate Change and Global Warming (E) Working Group will hear a presentation from Sharlene Leurig of Ceres titled “The Ripple Effect: Water Risk in the Municipal Bond Market.” One can only guess at the meaning of this mysterious title, so here goes:... Read more

Surplus Lines

November 1, 2011 State legislative action in reaction to Dodd-Frank legislation addressing the surplus lines business and treatment of related taxes has gone off in two distinct directions. Some states have chosen to enact legislation enabling participation in the NCOIL... Read more

Producer Licensing

November 1, 2011 The Producer Licensing (EX) Task Force will meet on Friday in National Harbor to consider adoption of the eight proposed “Business Entity Licensing Standards” that were developed by the agent trade associations and have been under discussion at the NAIC... Read more

Complaint Reconciliation Proposal

November 1, 2011 The Market Regulation &amp; Consumer Affairs (D) Committee will consider adoption of a proposal for implementation, by the states, of a consumer complaint reconciliation process during its meeting on Saturday. Few states currently provide for complaint ... Read more

Market Information Systems Task Force

November 1, 2011 The Market Information Systems (D) Task Force will meet Friday in National Harbor to discuss the proposal to post state-specific aggregate MCAS ratios on the NAIC website. This proposal, first raised several months ago during a meeting held by conferenc... Read more

Market Conduct Annual Statement

November 1, 2011 The Market Analysis Procedures (D) Working Group will meet Friday, Nov. 4 to discuss several proposed changes to the Market Conduct Annual Statement. The working group previously approved the addition of long-term care as a covered line under MCAS. At t... Read more

ORSA Guidance Manual Expected to be Adopted

November 1, 2011 The NAIC’s proposed new requirement that certain insurers complete an “Own Risk and Solvency Assessment” is expected to be adopted by the Group Solvency Issues (EX) Working Group at the fall national meeting. This NAIC working group has spent the last s... Read more

Final Action Expected on Reinsurance Changes, SSAP No. 101-Income Taxes

November 1, 2011 Although the NAIC did not hold its Summer National Meeting in Philadelphia, Aug. 29-Sept. 1, it held numerous conference calls and meetings that advanced many issues. Specifically, and as expected, the Accounting Practices &amp; Procedures adopted a rev... Read more

NAMIC to be Involved in Long-Term Project That Reshapes Risk-Based Capital Asset Charges

November 1, 2011 The NAIC Valuation of Securities Task Force and Capital Adequacy Task Force have recently formed a joint subgroup to study the recalibration of the Risk Based Capital asset charges. The new group, C-1 Factor Review Subgroup, is named after the life port... Read more

Hurricane Irene Forces Cancellation of NAIC Summer Meeting

August 26, 2011 The National Association of Insurance Commissioners cancelled its summer meeting scheduled for Aug. 29-Sept. 1 in Philadelphia because of Hurricane Irene and the potential for it to reach the city. NAMIC will keep membership informed as to if and when t... Read more

News & Notes

August 25, 2011 Neil Alldredge, In this column that goes out with every special edition of the Advocacy Update related to the NAIC, I usually have a fairly sharp (and hopefully humorous) take on an issue or on the NAIC in general. But today, I just don’t have it me. Oh... Read more

SSAP No. 101-Income Taxes

August 25, 2011 At the NAIC’s spring national meeting, a proposed new statement on statutory accounting for income taxes was formally exposed for comment. The proposed new statement, SSAP No. 101, was immediately met with opposition by the insurance industry for its co... Read more

NAMIC Shapes Direction of NAIC Discussions on Governance

August 25, 2011 NAMIC submitted written comments in May to the NAIC’s Corporate Governance (EX) Working Group, in which it expressed its concerns with the current direction of the NAIC with respect to corporate governance. Specifically, the NAIC appeared to be headed i... Read more

Reinsurance Changes One Step Closer

August 25, 2011 The NAIC continues to plow forward on its changes to the regulation of reinsurance within the U.S. marketplace and appears to be one step closer to finalization. The debate regarding the use of collateral for reinsurance has been ongoing within the NAIC... Read more

ORSA Discussions to Continue

August 25, 2011 The NAIC’s proposal for what it calls an “Own Risk and Solvency Assessment” is expected to continue at the NAIC summer national meeting. The NAIC Group Solvency Issues (EX) Working Group has been modifying its previously exposed proposal this summer to ... Read more

Insurance Scoring Back on Property/Casualty Committee Agenda

August 25, 2011 In a bit of a surprising move, the Property/Casualty (C) Committee will again take up two aspects of the insurance scoring issue, neither of which has been discussed for nearly a year. The first is related to the potential development of a model law tha... Read more

Reminder: NAMIC to Host NAIC Spring Meeting Review Call

April 1, 2011 NAMIC will be hosting an NAIC review call on April 4 from 2 p.m.-3 p.m. EDT. NAMIC staff will review events that occurred at the NAIC spring national meeting held March 25-29 in Austin, Texas. Dial-in number is 866.809.4014; passcode: 8755258. Direct qu... Read more

Earthquake (C) Study Group

March 31, 2011 Following a presentation on the impact of recent earthquakes in Japan and New Zealand on the reinsurance industry, the study group received a surprise visit from Glenn Pomeroy, CEO of the California Earthquake Authority. Pomeroy stated that the U.S. mus... Read more

Surplus Line (C) Task Force

March 31, 2011 The task force met only briefly and had no discussions regarding current efforts to adopt the NIMA and SLIMPACT lite proposals in the states. Direct questions to NAMIC’s Assistant Vice President of State Affairs Joe Thesing. ... Read more

Workers’ Compensation (C) Task Force

March 31, 2011 The task force adopted reports from the NAIC/IAIABC Joint Working Group and the Large Deductible Study Implementation Working Group. Rep. George Keiser of North Dakota, president of NCOIL, made a presentation on NCOIL’s recently adopted model Act, which... Read more

Receivership and Insolvency (E) Task Force

March 31, 2011 The task force had a detailed discussion regarding efforts to comply with the Dodd-Frank Act requirements regarding receivership. The federal Act grants the FDIC with the authority to designate a company as systemically risky as a basis for receivership... Read more

Crop Insurance (C) Working Group

March 31, 2011 The working group heard presentations on federal preemption for adjuster licensing from the Risk Management Agency and the National Crop Insurance Services. NAIC staff stated that eight states remain in jeopardy of preemption but that most of these stat... Read more

Consumer Connection (D) Working Group

March 31, 2011 This working group was specifically developed to facilitate dialogue between regulators, consumer representatives, and the industry. However, consumer representatives were provided a pre-arranged opportunity to make presentations on contract readability... Read more

State Government Liaison Committee

March 31, 2011 Insurance commissioners held a mostly cordial meeting with leadership from NCOIL and NCSL to discuss Dodd-Frank implementation and health care implementation. NAIC President Susan Voss kicked-off the meeting by stating that the NAIC would strive to work... Read more

Other Property/Casualty Insurance Matters

March 31, 2011 The meeting of the Property & Casualty Insurance (C) Committee on Monday afternoon consisted mostly of reports from the committee’s various task forces and working groups. A new unit, the Transparency & Readability Working Group, did not meet during the... Read more

Credit-Based Insurance Scoring

March 31, 2011 A revised version of the NAIC’s proposed Risk Classification Survey Instrument was posted on the NAIC website just a day or two prior to the NAIC spring meeting in Austin, Texas. The agenda for the Monday meeting of the Property & Casualty Insurance (C)... Read more

Other Market Regulation Matters

March 31, 2011 No mention was made in any public meeting about either the new Social Media (D) Working Group or the Market Regulation Accreditation (EX) Task Force. It is likely that the Social Media Working Group will be appointed and will begin its activities in the... Read more

Market Conduct Annual Statement

March 31, 2011 The Market Analysis Procedures (D) Working Group met on Sunday morning to discuss possible changes to both the Market Conduct Annual Statement data elements and to the lines of business covered by MCAS. The chair of the working group, Lynette Baker of O... Read more

CAT Modelers Grilled by Catastrophe Working Group

March 31, 2011 A vote to adopt a draft white paper on defective drywall was high on the agenda of the Catastrophe Insurance (C) Working Group. But when the group met on Monday, March 28, it decided to hold a conference call in mid-April to consider the white paper. Th... Read more

Proposed SSAP for Taxes Problematic; OCBOA Status Should Help Opinion

March 31, 2011 The NAIC’s Statutory Accounting Principles Working Group has proposed changes to tax accounting that would affect the admissibility calculation of deferred taxes, a matter recently of extraordinary sensitivity in solvency regulation. The change, one of ... Read more

NAMIC Questions Reasons For, Use of White Paper on Corporate Governance

March 31, 2011 Should an NAIC white paper prescribing criteria for insurers’ corporate governance become a model law or regulation for adoption by the states? Titled “White Paper on High Level Corporate Governance Principles for Use in U.S. Insurance Regulation,” the ... Read more

Task Force Weighs Dodd-Frank, Credit-for-Reinsurance Collateral

March 31, 2011 Amid continuing dissent by primary insurers, the NAIC’s Reinsurance Task Force deliberated on changes to credit for reinsurance that may allow alien reinsurers with strong credit standing to avoid posting collateral. Several states, including New York, ... Read more

ORSA Premise Reasonable, But ‘Massive’ NAIC Proposal Begs for ‘Proportionality’

March 31, 2011 NAMIC told the NAIC’s International Solvency Working Group Sunday in Austin that its February proposal for an Own-Risk Solvency Assessment was “massive” by any measure and required “proportionality” for smaller insurers. The NAIC’s proposed ORSA emulate... Read more

NAMIC to Host NAIC Spring Meeting Review Call

March 29, 2011 NAMIC will be hosting an NAIC review call on April 4 from 2 p.m.-3 p.m. EDT.&nbsp; NAMIC staff will review events that occurred at the NAIC spring national meeting that was held March 25-29 in Austin, Texas. Dial-in number is 866.809.4014; passcode: 875... Read more

Change?

March 24, 2011 Neil Alldredge, We’ve certainly heard plenty about change in the political realm at every level of government lately. The question that many are asking is whether the change we witnessed in the 2010 election will result in new public policy or did we ju... Read more

Other Property/Casualty Insurance Matters

March 24, 2011 Like the Market Regulation & Consumer Affairs (D) Committee, much of the activity will be limited to organization of working groups and task forces and routine reports. Members of the single new group reporting to the (C) Committee, the Transparency & R... Read more

Credit-Based Insurance Scoring

March 24, 2011 It is expected that the Property & Casualty Insurance (C) Committee will release in Austin or just prior to the Austin meeting a revised draft of the risk assessment survey that has been in development over the past year. Interested parties have been wa... Read more

Other Market Regulatory Activity

March 24, 2011 The majority of other activities in the market regulation area will involve organizational matters and review of charges for the year for the working groups and task forces. One new group this year will be the Social Media Working Group; its primary dut... Read more

Market Conduct Annual Statement

March 24, 2011 After significant changes were made to the Market Conduct Annual Statement last year, it is doubtful that any revisions will be undertaken in 2011. The Market Analysis Procedures Working Group, responsible for the data elements included in MCAS as well ... Read more

IRMA/ORSA Plan Gets Austin Discussion; NAMIC, Industry Pan Extent of Compliance

March 24, 2011 The NAIC’s proposal for what it calls an “Internal Risk Management Assessment” is the target of a wide spectrum of industry criticism to be discussed during the NAIC’s spring meeting in Austin. NAMIC stated its discomfort with the “sheer mass of what is... Read more

The Question: Are IAIS Governance Principles Appropriate For U.S.?

March 24, 2011 Fundamental questions of transferability and applicability of European-originated standards for corporate governance to this country will be the subject of debate during a meeting Sunday of the NAIC’s Corporate Governance Working Group. The NAIC, in an ... Read more

Still Time to Register for NAMIC’s Webinar Previewing the NAIC Spring National Meeting

March 16, 2011 The next NAMIC State of the States webinar will preview the NAIC spring national meeting being held March 25-29 in Austin, Texas. NAMIC State and Policy Affairs staff will offer their unique insights into what members can expect from this first national... Read more

Webinar to Preview NAIC Spring National Meeting

March 14, 2011 The NAMIC State of the States webinar on Monday, March 21 will preview events likely to occur at the NAIC spring national meeting, March 25-29 in Austin, Texas. NAMIC State and Policy Affairs staff will offer their unique insights into what members can ... Read more

Webinar to Preview NAIC Spring National Meeting

March 9, 2011 The next NAMIC State of the States webinar will preview the NAIC spring national meeting being held March 25-29 in Austin, Texas. NAMIC State and Policy Affairs staff will offer their unique insights into what members can expect from this first national... Read more

NAMIC State of the State Webinar: A Conversation With NAIC President

January 14, 2011 There is still time to register&nbsp;for the NAMIC State of the States webinar scheduled for Monday, Jan. 24 at 2 p.m. EST. The webinar will feature a conversation between new NAIC President and Iowa Insurance Commissioner Susan E. Voss and State Policy... Read more

NAMIC State of the State Webinar: A Conversation With NAIC President

January 6, 2011 Registration for the next NAMIC State of the States webinar scheduled for Monday, Jan. 24 at 2 p.m. EST is now open. The webinar will feature a conversation between new NAIC President and Iowa Insurance Commissioner Susan E. Voss and State &amp; Policy ... Read more

NAIC Adopts Holding Company Model Revisions

December 29, 2010 The NAIC held a joint Executive Committee/Plenary session by conference call Dec. 16 to clear a considerable list of outstanding issues. Among the actions taken was approval of revisions to the NAIC’s Insurance Holding Company System Model Act and Model... Read more

Accounting for Short-Duration Contracts Should Not Change to Proposed IASB Method, NAMIC Asserts

December 7, 2010 Only pain and no gain, say comments from NAMIC to U.S. and international accounting authorities on proposed new guidance for presenting short-duration insurance contracts. The proposed new guidance would cause SEC-related companies to adopt highly actua... Read more

NAIC Central Office to Relocate in Kansas City

October 26, 2010 Rumors about the NAIC’s office relocation, perhaps even from Missouri to Kansas, were put to rest last Tuesday when the NAIC Executive Committee met and approved further lease negotiations that would provide for relocation of its central operations to d... Read more

NAIC Elects Officers – Midterm Elections Could Impact Slate

October 26, 2010 Amid hallway rumors that the NAIC might hold off on electing new officers for 2011 until after the midterm elections, the NAIC did go ahead with its election. As expected, Susan Voss of Iowa was elected president; Florida’s Kevin McCarty becomes preside... Read more

Property-Casualty C Committee Creates Coverage Transparency Working Group for 2011

October 26, 2010 The Property and Casualty Insurance (C) Committee voted unanimously to establish a new working group for 2011 that will recommend ways to make personal lines policy contracts accessible to consumers prior to purchasing coverage, as well as formulate tig... Read more

Producer Licensing Task Force Stalls on New Business Entity Licensing Standards

October 26, 2010 The Producer Licensing (EX) Task Force met last Tuesday and, among other things, held further discussions on the proposed business entity licensing standards introduced two months ago by the agent trade associations during the Seattle NAIC meeting. It w... Read more

Climate Change Task Force to Explore Pay-As-You-Drive Auto Policies as Partial Solution to Climate Change

October 26, 2010 Continuing its effort to identify insurance-based strategies to reduce global warming and mitigate the effects of climate change, the Climate Change and Global Warming (EX) Task Force has adopted pay-as-you-drive automobile insurance as the centerpiece ... Read more

Consumer Disclosures Working Group Discussions Continue

October 26, 2010 The Consumer Disclosures (D) Working Group met last Tuesday and continued its discussions without making any formal decisions on any issues. The working group discussed the NAIC’s adoption of the Privacy Disclosure Model Bulletin that the working group ... Read more

Update Provided on Market Conduct Annual Statement

October 26, 2010 Missouri’s John Huff, chairperson, Market Information Systems (D) Task Force, provided an update last Tuesday to his group on the recent changes made to the Market Conduct Annual Statement and to the progress in preparations for the expanded MCAS to be ... Read more

NAIC Asserts Differences Between Life, Non-Life for IASA Response on Insurance Contracts Draft

October 26, 2010 An NAIC recommendation to the International Association of Insurance Supervisors notes “identifiable and distinct” differences between life and non-life insurance contracts, contradicting a potential new insurance accounting standard. That potential new... Read more

Statutory Working Group Adjusts 35R; Floats Amendment for OPEB Guidance

October 26, 2010 Conditions required for recognizing liabilities for insurance-related assessments are modified by changes made by the Statutory Accounting Principles Working Group to SSAP No. 35R and Issue Paper No. 143 concerning guaranty-fund assessments. Meeting Oct... Read more

Market Regulation Accreditation Takes New Direction

October 26, 2010 The Market Regulation Accreditation (EX) Task Force met last Tuesday afternoon to discuss the current accreditation proposal. Numerous comments had been submitted since the Seattle meeting by both regulators and industry representatives. While the regul... Read more

Credit-for-Reinsurance Accreditation Standard Will Accommodate States’ Collateral Reductions

October 26, 2010 Federal legislation, continuing NAIC intent to allow collateral reduction, and several states’ move to alter collateral requirements may presage a larger move to a relaxed credit-for-reinsurance regulatory regime. Two important recommendations affecting... Read more

NAIC Committees Beat Drum for New Report as Measure Toward Equivalence With Euros

October 26, 2010 Despite the U.S. insurance industry’s relative stability through recent and current rough times, some NAIC committees concerned with solvency regulation are keen on a regulatory tool known as the ORSA, or Own Risk Solvency Assessment. In general, an ORS... Read more

Florida: Office of Insurance Regulation Discusses Marketplace Solution

October 26, 2010 The Florida Office of Insurance Regulation presented a symposium last Thursday titled “Moving the Market Forward.” The event took place in conjunction with the last day of the NAIC meeting held in Orlando. Robert Detlefsen, NAMIC’s vice president of Pub... Read more

An Election Before Its Time

October 14, 2010 Neil Alldredge, For those who read this column (all 12 of you), you will no doubt notice my healthy skepticism and/or cynicism toward the NAIC. Believe me, it’s well earned. Many times I have raised issues and sometimes even ranted about the NAIC proces... Read more

Producer Licensing Task Force to Consider Business Entity Licensing Standards

October 14, 2010 During the August meeting of the Producer Licensing (EX) Task Force in Seattle, Wes Bissett, representing the IIABA, the “Big I”, made a presentation introducing a set of eight proposed new additions to the uniform producer licensing standards. The prop... Read more

NAIC Prepares for Market Conduct Annual Statement Expansion

October 14, 2010 A major project relating to the Market Conduct Annual Statement undertaken this year at the NAIC involved the substantial revisions to the data elements and definitions for both the property/casualty and life/annuity versions of MCAS. The various change... Read more

Consumer Disclosures Working Group Continues Work on Privacy Disclosures

October 14, 2010 When the Consumer Disclosures (D) Working Group met in Seattle in August, it adopted a model bulletin that clarified that insurance companies may use the new Federal Model Privacy Form – or continue to use other types of privacy notices that differ from... Read more

Climate Change Task Force Struggles With Mandate to Report on Climate Risk Survey Answers

October 14, 2010 Climate change is an issue that has receded in importance at the NAIC since the group moved during its spring meeting last March to substantially revise the process by which states administer the Insurer Climate Risk Disclosure Survey. The revised surve... Read more

Market Regulation Accreditation Struggles Continue

October 14, 2010 The Market Regulation Accreditation (EX) Task Force, chaired by New Hampshire Commissioner and former NAIC president Roger Sevigny, will meet Tuesday afternoon during the NAIC fall meeting in Orlando. 2010 is the third year of formal NAIC work on the de... Read more

Solvency Modernization Initiative Focuses on Statutory Accounting, ‘ORSA,’ Groups

October 14, 2010 The NAIC’s Solvency Modernization Initiative’s broad scope affects all insurers and enters a period of extra heavy activity during the NAIC’s fall meeting in Orlando that begins Oct. 17. Of crucial interest to all insurers and subject to perhaps the mos... Read more

Property-Casualty C Committee to Consider 2011 Charge to Create Rules on Insurance Policy Transparency, Accessibility

October 14, 2010 Like all other NAIC standing committees, the Property and Casualty Insurance (C) Committee will adopt is 2011 “charges” when it meets on Wednesday, Oct. 20. NAMIC has learned that included among the various charges up for consideration is the following:... Read more

Reminder: NAMIC’s NAIC Preview Call

October 11, 2010 NAMIC will be hosting an NAIC fall meeting preview call tomorrow from 2 p.m. until approximately 3 p.m. (ET). To participate in the pre-NAIC briefing, dial in at (866) 809-4014. The access code is 8755258. ... Read more

NAMIC’S NAIC Preview Call

October 4, 2010 NAMIC will be hosting an NAIC fall meeting preview call Tuesday, Oct. 12 from 2 p.m. until approximately 3 p.m. (ET). To participate in the pre-NAIC briefing, dial in at (866) 809-4014. The access code is 8755258. ... Read more

NAIC’s Data Call Proposal Scrapped, Alternative Considered

October 1, 2010 Significant progress was made yesterday during the NAIC’s public hearing on the National Association of Insurance Commissioners’ proposal for a Risk Classification Data Call. During the daylong hearing, regulators heard from Neil Alldredge, NAMIC’s seni... Read more

NAMIC Questions Need for NAIC Data Call Initiative

September 30, 2010 The following statement may be attributed to Neil Alldredge, senior vice president for State &amp; Policy Affairs for the National Association of Mutual Insurance Companies, on the hearing held today at the National Association of Insurance Commissioner... Read more

NAMIC Testifies At NAIC Hearing On Data Call Initiative

September 30, 2010 Neil Alldredge, NAMIC’s senior vice president of State &amp; Policy Affairs, testified today at a public hearing on the National Association of Insurance Commissioners’ proposal for the Risk Classification Data Call currently under consideration. The in... Read more

Policymaking From the Fringe

April 13, 2010 Another group of zealous commissioners are raising the flag for their cause, and all indications point toward their pushing forward with their campaign regardless of the evidence proving that it’s not such a good idea. The NAIC has been for some time tr... Read more

New Market Conduct Accreditation Proposal Released

September 30, 2008 The Market Regulation & Consumer Affairs (D) Committee released the second draft of a "Market Regulation Accreditation Program" during its Sept. 24 fall meeting in National Harbor, Md. Comments will be taken on the second version, “Market Regulation Acc... Read more

Long Agenda Precludes Deliberation on Pension, Benefits Guidance

September 30, 2008 The NAIC's Statutory Accounting Principles Working Group's long and tedious agenda forced further deliberation on new issue papers for pensions and other post-employment benefits for another day. The working group met Sept. 22 during the NAIC's fall mee... Read more

Preference is for 1-in-100-year Standard for Catastrophe RBC

September 30, 2008 Members of the NAIC’s Catastrophe Risk Subgroup decided Sept. 21 during the NAIC fall meeting to use a 1-in-100-year standard for a factor that will reflect insurers’ catastrophe risk. The regulators dropped a previous preference for a 1-in-250-year sta... Read more

Task Force Cancels Vote on Climate Risk Disclosure Proposal

September 30, 2008 In our NAIC Preview, we reported being told by NAIC staff just days before the beginning of the fall meeting that the Climate Change and Global Warming (EX) Task Force would cancel its expected vote on its Climate Risk Disclosure Proposal. This informat... Read more

Personal Lines Regulatory Framework Project Still on Hold

September 30, 2008 During the Sept. 24 meeting of the NAIC’s Speed to Market (EX) Task Force, the chair of the Personal Lines Regulatory Framework Working Group, Alabama's David Parsons, reported that little had occurred since the working group’s conference call in May. T... Read more

Reinsurance Overhaul Sails Through Committees; Still Needs Congressional Act to Work

September 30, 2008 Its parliamentary prospects barely scathed by panic elsewhere in the financial services industry, a new, lower collateral plan for reinsurers caught only single nays in each of two committees considering it during the fall NAIC meeting. The plan would a... Read more

Market Regulation Committee Discusses Credit Scoring Paper

September 30, 2008 Two days prior to the NAIC fall national meeting in National Harbor, Md., the Market Regulation & Consumer Affairs (D) Committee released its Aug. 26 draft “Review of the Use of Credit-Based Insurance Scoring by Insurers.” Committee Chair John Morrison ... Read more

Decision on Mutuals’ GAAP-like Disclosures Postponed by NAIC/AICPA Working Group

September 30, 2008 Organizing a decision-making group for formulating new disclosures for statutory reporting will be the topic of an NAIC/AICPA Working Group teleconference before the winter NAIC meeting. Not yet scheduled, the teleconference will be the occasion for cho... Read more

Market Conduct Proposals Approved in Surprise Move

September 30, 2008 When the draft agenda for the NAIC Joint Executive (EX) Committee/Plenary was published on Sept. 10, nothing in it suggested that the committee would consider action on anything related to the highly controversial Market Conduct Annual Statement proposa... Read more

NAMIC Offers Comments to Climate Change Task Force

September 19, 2008 The NAIC’s Climate Change and Global Warming (EX) Task Force will hold two meetings at its fall meeting in Washington, Sept. 21-24. On Saturday, the Climate Risk Disclosure Working Group will meet, followed by a meeting of the full task force on Sunday.... Read more

No Formal Action on Market Conduct Annual Statement Proposal

September 19, 2008 No formal action on the pending Market Conduct Annual Statement proposal is expected at the upcoming fall national meeting of the NAIC to be held in National Harbor, Md., from Sept. 21-24. There was no official consideration of the proposal during the N... Read more

Report Due on Personal Lines Regulatory Framework Project

September 19, 2008 There has been no public activity related to this long-term project since the Personal Lines Regulatory Framework (EX) Working Group held its last conference call in May. The subject of discussion at that time was the re-written sections of the paper th... Read more

Post-employment Benefits Liability Up in Air for Statutory Accounting

September 19, 2008 The liability for non-vested employees’ post-employment benefits is a material item for many insurers, and the NAIC’s Statutory Accounting Principles Working Group will probably make a vote during the NAIC’s fall meeting. Statutory accounting guidance d... Read more

NAIC to Initiate State Legislator Orientation Program

September 19, 2008 During the June meeting of the NAIC/Legislative Liaison Committee in San Francisco, NAIC President Sandy Praeger talked with NCOIL chair Rep. Patrick Kennedy of Rhode Island about working together to bring legislators to NAIC headquarters to learn more ... Read more

Market Conduct Accreditation Proposal Slated for Discussion Only

September 19, 2008 When the Market Regulation & Consumer Affairs (D) Committee met on the last day of the summer NAIC meeting in San Francisco in June, Commissioner John Morrison of Montana introduced a proposed draft of a Market Regulation Accreditation Program. The prop... Read more

New Reinsurance Plan Will Proceed Up NAIC Committee Hierarchy but Operation is Contingent on Act of Congress

September 19, 2008 A plan for a major overhaul of licensure for reinsurers and credit for reinsurance will enter the NAIC voting process Monday during NAIC fall meeting in National Harbor, Md. The plan, which includes potential resolution of the endlessly debated matter o... Read more

Market Regulation Committee to Review Credit Scoring Studies

September 19, 2008 During the meeting of the Market Regulation & Consumer Affairs (D) Committee on the last day of the June NAIC meeting, Commissioner John Morrison (MT) raised the issue of credit based insurance scores, the previous NAIC working group assigned to look at... Read more

Why Migrate to IAIS or EU Solvency Regulation? NAIC Weighs That, International Accounting

September 9, 2008 The foundation elements of U.S. insurance regulation, statutory accounting, and the states’ complex regime of solvency monitoring and preservation face powerful international influences and must choose how to adapt, the NAIC has acknowledged. “I’m just ... Read more

Connecticut: NAMIC-supported Challenge to AG Authority to Share Submitted Information Dismissed on Procedural Grounds

September 9, 2008 The Connecticut Supreme Court has dismissed a case challenging the scope of the authority of the state’s attorney general to share information submitted pursuant to an antitrust investigation with other parties on procedural grounds. NAMIC joined with t... Read more

How NAIC Emulates International Solvency Regulation is Crucial Question for Meeting

August 26, 2008 European-style regulation will be a central topic in a September meeting of the NAIC’s Financial Condition (E) Committee and its International Solvency and Accounting Working Group. The meeting will be held Sept. 3-4 in Chicago. Described as a meeting f... Read more

NAIC Reinsurance Task Force Pushes ‘Modernization’ Plan, Acknowledges Congressional Act May be Required

July 29, 2008 Insisting that it is taking a middle ground in its proposal that eases alien reinsurers’ participation in the U.S. reinsurance market, an NAIC committee heard lengthy industry and public testimony on that proposal Wednesday and Thursday in New York. Ste... Read more

Legislators Say ‘No’ to NAIC on Market Conduct

July 15, 2008 The National Conference of Insurance Legislators summer meeting in New York was highlighted by passage of a resolution in opposition to an NAIC proposal on Market Conduct Annual Statements. The State-Federal Relations Committee discussed then adopted a ... Read more

NAMIC Comments on Revised NAIC Climate Risk Disclosure Proposal

July 1, 2008 Among the more significant developments to occur at the NAIC annual summer meeting in San Francisco was the release by the Climate Change and Global Warming Task Force of a revised version of its “Climate Risk Disclosure Proposal.” The disclosure propos... Read more

NAIC Seeks Comments on Accreditation Proposal

June 17, 2008 At the NAIC Summer National Meeting in San Francisco earlier this month, the Market Regulation & Consumer Affairs (D) Committee introduced a proposal for a market conduct accreditation program. The proposal, modeled loosely after the NAIC financial accr... Read more

NARAB Working Group Recommends Certification For Four Jurisdictions

June 6, 2008 The NARAB (EX) Working Group met on Monday morning and recommended four additional jurisdictions for certification as reciprocal states under the reciprocity requirements of the Gramm-Leach-Bliley Act. The District of Columbia, Indiana, Missouri, and Mo... Read more

Clarification on Intercompany Pooling Part of Statutory Accounting Agenda

June 6, 2008 Accounting for intercompany pooling in Statement of Statutory Accounting Principles No. 63 – Underwriting Pools … was clarified during a long agenda in San Francisco of the NAIC’s Statutory Accounting Principles Working Group. Central to the clarificati... Read more

NAIC Will Allow Municipal Bond Ratings to be Severed From Bond Insurer Downgrade

June 6, 2008 Municipal bonds insured by “monoline” insurers that have suffered from reverses from the subprime debt meltdown need not take the ratings plunge their guarantors have taken, the NAIC decided Sunday during the NAIC summer meeting. The move by the Valuati... Read more

Personal Lines Regulatory Framework Update

June 6, 2008 While the Personal Lines Regulatory Framework Working Group did not meet in San Francisco, the chair of the group, David Parsons, provided an update on the white paper – under development for several years – at the Monday meeting of the Speed to Market ... Read more

NAIC Reinsurance Task Force Discusses Credit-for-Reinsurance ‘Modernization’

June 6, 2008 Blueprints for an intended new system for insurers’ credit for reinsurance appear to fully incorporate an international dimension that has long been sought by reinsurers domiciled outside the United States. The plan for overhaul of credit for reinsuranc... Read more

NAMIC Continues to Raise Issues on Climate Change Initiative

June 6, 2008 The Climate Change and Global Warming (EX) Task Force met twice during the summer NAIC meeting in San Francisco last week. During the last several months, the task force has been working simultaneously on two distinct but related projects. One of these,... Read more

Market Regulation Committee Floats Accreditation Program

June 6, 2008 During its wrap-up meeting on Monday afternoon, the Market Regulation & Consumer Affairs (D) Committee made public for the first time a draft Market Regulation Accreditation Program. The committee had discussed the possibility of market regulation accre... Read more

SERFF Board Bylaws Issue Heats Up

June 6, 2008 The Board of Directors of the System for Electronic Rate and Form Filing met Saturday afternoon in San Francisco, spending most of its time on the issue of revision of its bylaws. When SERFF became operative approximately 10 years ago, the SERFF board o... Read more

NAIC/AICPA Group Tallies Adoption of Model Audit Rule

June 6, 2008 A count of states adopting the NAIC Model Audit Rule as revised for certain Sarbanes-Oxley content shows two states having completed such adoption and three other states having exposed such changes for potential administrative adoption. The early adopte... Read more

Independent Adjuster Licensing Guideline Approved by Parent Committee

June 6, 2008 Following a process that was intended to be on a fast track but which took several years, the Market Regulation & Consumer Affairs (D) Committee, at its meeting on Monday afternoon, approved the Independent Adjuster Licensing Guideline. The guideline, p... Read more

NAMIC Raises Significant Issues with Market Conduct Annual Statement

June 6, 2008 While no definitive action on the Market Conduct Annual Statement issue was taken by any group during the San Francisco meeting, there was discussion about it in several meeting sessions. The issue was raised by Rhode Island state Rep. Brian Kennedy on ... Read more

Climate Change Proposals Put Insurers in ‘Impossible Position,’ NAMIC Tells Regulators

June 1, 2008 SAN FRANCISCO (June 1, 2008) – Proposals included in a controversial white paper on climate change and insurers raise serious concerns, according to the National Association of Mutual Insurance Companies (NAMIC). The white paper was adopted by a task fo... Read more

NAMIC Tells NAIC to Reject Data Collection Proposal

June 1, 2008 SAN FRANCISCO (June 1, 2008) – A proposal for insurers to submit market conduct data as part of their annual statements to the National Association of Insurance Commissioners would violate the laws of most jurisdictions and potentially harm consumers as... Read more

Market Regulation Committee to Consider Independent Adjuster Licensing Guideline

May 29, 2008 The Market Regulation & Consumer Affairs (D) Committee will meet in San Francisco on Monday afternoon. Among other items on its agenda, the working group will consider approval of the Independent Adjuster Licensing Guideline. The Independent Adjuster Li... Read more

Market Conduct Annual Statement Issue Before Executive Committee

May 29, 2008 The Market Conduct Annual Statement issue that came to life in March will continue its fast-paced travels in San Francisco before the NAIC’s Executive Committee. On March 21, Commissioner John Morrison of Montana made public his proposal to collect mark... Read more

NAMIC Continues Raising Concerns About Climate Change Proposal

May 29, 2008 The issue of climate change will continue to dominate discussions at this weekend’s NAIC summer national meeting in San Francisco, and NAMIC will be there to represent member views in those talks. The Climate Change and Global Warming (EX) Task Force wi... Read more

NARAB Working Group Continues Work on Reciprocity

May 29, 2008 The NARAB Working Group , recently re-established by NAIC president-elect Roger Sevigny of New Hampshire, will meet in San Francisco on the morning of June 2. During its meeting, the working group will consider the status of three states – Montana, New ... Read more

NCOIL Raises Serious Objections to MCAS Project

May 29, 2008 In a significant development that may well affect the outcome of the controversial Market Conduct Annual Statement project, the officers of the National Conference of Insurance Legislators sent a strong letter to all commissioners raising serious object... Read more

SERFF Board of Directors Status in Issue

May 29, 2008 During the closed meeting of the board of directors for the System for Electronic Rate and Form Filing, NAIC staff introduced a proposal for revisions to the SERFF bylaws that would turn the bylaws into “guiding principles.” The SERFF board of directors... Read more

NAIC Reinsurance Task Force Memo has Collateral Increase for Weakening Reinsurer

May 29, 2008 A memorandum developing content of what may become a new NAIC model law for credit for reinsurance gives leverage to ceding companies for collateral that must be posted for claims. The memorandum, issued as part of a private-deliberation process the Rei... Read more

NAMIC: NAIC Executive Committee to Hold Hearing on Market Conduct Annual Statement Data Proposal

May 20, 2008 If you have followed NAMIC reports, you may know that the national trades jointly requested that the NAIC's executive committee either conduct a public hearing or direct the Market Regulation (D) and Financial Condition (E) Committees to hold a public h... Read more

Credit-based Insurance Scoring Attacked by Consumer Representatives

April 8, 2008 In three separate meeting sessions, consumer representative Birny Birnbaum, Center for Economic Justice, urged the NAIC to take some action on insurance scoring in the face of the current subprime mortgage crisis. Birnbaum told his regulator audiences d... Read more

NARAB Working Group Reactivated

April 8, 2008 The newly formed NARAB (EX) Working Group met in Orlando on March 31 for an organizational meeting. Reporting directly to the NAIC Executive Committee and headed by NAIC president-elect Roger Sevigny of New Hampshire, this group was formed to address th... Read more

Obligation to Complete and File New NAIC Conflict of Interest Statement is Unclear

April 8, 2008 The NAIC’s Plenary Committee – the assembly of all state and territorial members – voted March 31 to pass a conflict of interest statement related to “responsibilities and duties to the NAIC.” There were 12 dissenting votes among some 50 members of the ... Read more

No Action Taken on Independent Adjuster Licensing Guideline

April 8, 2008 Though action was expected in Orlando, the independent adjuster licensing guideline developed more than a year ago was still not put in final form. The chair of the independent adjuster licensing subgroup did not attend the Orlando meeting nor did she a... Read more

Pension Accounting Moves Toward GAAP; Regulator Says Use GAAP for Statutory

April 8, 2008 A vote March 29 during the NAIC’s spring meeting in Orlando brings statutory accounting closer to emulation of generally accepted accounting principles for pensions and benefits, including liability for non-vested employees. “The GAAP model does work,” ... Read more

Market Conduct Annual Statement Database Push Continues

April 8, 2008 The Market Regulation & Consumer Affairs (D) Committee devoted an hour of its two-hour meeting time on March 31 to the issue of the Market Conduct Annual Statement and the proposal to include the MCAS data as part of the NAIC Annual Statement Blank. It ... Read more

Reinsurance Task Force Tells Interested Parties ‘We’ll Tell Ya Later’ About Our Deliberations

April 8, 2008 What is expected to be a radical revision of existing reinsurance regulation will proceed out of sight of the public and is intended to be revealed only after the fact of the committee’s actions. The closeted deliberation by the NAIC’s Reinsurance Task ... Read more

Climate Change and Global Warming (EX) Task Force Considers Mandatory Climate Risk Disclosure

April 8, 2008 Bob Detlefsen The task force heard reactions to its “Climate Risk Disclosure Proposal” from two panels whose members were invited to testify by task force Chairman Sean Dilweg (Wis.) An industry panel consisting of representatives of NAMIC, AIA, RAA, an... Read more

Catastrophe Insurance Working Group Continues to Dither over White Paper

April 8, 2008 Bob Detlefsen The Catastrophe Insurance (C) Working Group met on March 29, principally to discuss its white paper, “ Natural Catastrophe Risk: Creating a Comprehensive National Plan.” Those with long memories will recall that the group began drafting th... Read more

Commenters: Solvent Schemes, Other Run-offs Have High Potential for Abuse of Policyholders

April 8, 2008 An NAIC subgroup exploring alternate means for regulatory treatment of troubled insurers heard heavy criticism of British “solvent schemes of arrangement” used for winding up operations of insurers not deemed viable by ownership. Although initial court ... Read more

New Draft Released for Personal Lines Regulatory Framework

April 8, 2008 The Personal Lines Regulatory Framework Working Group did not meet during the recent NAIC meeting in Orlando. Just prior to the beginning of the meeting, the chair of the working group, David Parsons of Alabama released a new draft of the “Personal Line... Read more

Regulators Work in Camera on Reinsurance Proposal; Federal Legislation to be Fulcrum for Radical Change

March 31, 2008 An NAIC committee’s work toward radical revision of existing reinsurance regulation has begun out of sight of the public and substance is intended to be revealed only after the fact of the committee’s actions. The new plan for closeted deliberation, whi... Read more

NAIC’s Climate Change Disclosure Proposal is ‘Colossal Disappointment,’ NAMIC Says

March 27, 2008 INDIANAPOLIS (March 27, 2008) – A proposal ostensibly designed to ensure that insurers are adequately addressing issues of climate change serves no purpose other than to appeal to special interest groups, according to the National Association of Mutual ... Read more

Producer Licensing Working Group to Address Issues

March 25, 2008 The Producer Licensing Working Group will meet on Sunday in Orlando, Fla., in a joint meeting with the Crop Insurance (C) Working Group and will have several issues before it. The NAIC released its “NAIC Producer Licensing Assessment” in February, a rep... Read more

Change in Defined Benefit Pension Accounting Would Increase Liability, Affect Viability

March 25, 2008 An accounting issue paper that closely emulates a new generally accepted accounting principles statement on pensions and other benefits is an exercise in dubious conservatism, NAMIC has told the NAIC committee that creates accounting authority. Among ot... Read more

Personal Lines Regulatory Framework Project May Move Forward

March 25, 2008 The NAIC’s long-suffering Personal Lines Regulatory Framework Project, headed by Alabama’s David Parsons, may be ready soon for more activity. The long-term project, mired by disagreement and drafting problems, has been relatively dormant since the inte... Read more

New Producer Licensing Handbook Being Considered

March 25, 2008 The NAIC’s Producer Licensing Working Group released the first draft of its State Licensing Handbook on March 6 and is currently accepting comments on the draft. The handbook is primarily a producer licensing handbook and best practices document althoug... Read more

Market Conduct Annual Statement Database to be Discussed

March 25, 2008 At the end of the last quarterly NAIC meeting in December in Houston, the Market Regulation & Consumer Affairs (D) Committee voted to go forward with a new NAIC database for purposes of collection and maintenance of market conduct annual statement data.... Read more

Survey Shows States’ Intended Mode of Audit Rule Adoption

March 25, 2008 Only 14 states intend adoption of the NAIC Model Audit Rule revised for certain Sarbanes-Oxley content by legislative means, a new NAIC survey shows. Insurance department respondents to the NAIC survey said 31 would do so by administrative means. There ... Read more

Latest Iteration of Reinsurance Regulation Provokes Question: Can ‘National Reinsurer’ be Alien?

March 25, 2008 One of the NAIC’s longest running soap operas – with big stakes – is the one centered in reinsurance regulation, especially that for alien reinsurers and to what extent their assumptions in the United States will involve collateral. A new, if partial, p... Read more

NAIC Releases Climate Risk Disclosure Proposal

March 4, 2008 The NAIC Climate Change and Global Warming (EX) Task Force has released a draft proposal that would require insurers to participate in mandatory climate risk disclosure interrogatories as part of their annual statement filings. To learn more about the N... Read more

NAIC Reports on Producer Licensing Assessment

March 4, 2008 The NAIC has issued the report on its 3-month-long review of the states’ compliance with the NAIC uniform producer licensing standards. According to the NAIC Producer Licensing Assessment Aggregate Report of Findings , made public on Feb.19, 26 of 37 st... Read more

Personal Lines Project Still on Hold

February 5, 2008 The quest by the NAIC to formulate a pronouncement on a personal lines regulatory framework, first undertaken in 2004, seems to have slowed to a crawl. Quarterly and interim meetings and conference calls have resulted mostly in continuing disputes and u... Read more

NAIC Cites Top Insurance Complaints for 2007

January 31, 2008 Recent statistics reflect a continuing decrease in consumers’ insurance complaints for the fourth consecutive year, although the grounds for those complaints remain relatively unchanged. According to data released by the National Association of Insuranc... Read more

ACA-insured Bonds Get a Break from NAIC Securities Committee

January 25, 2008 Insurers holding municipal bonds insured by ACA Financial Guaranty Corp., may be saved any downgrade of such holdings, if the bonds have ratings from other firms. The weakening of ACA is illustrative of how contagion can travel in the financial world: A... Read more

NAMIC Urges NAIC to Re-focus Examination of the Impact of Climate Change on Insurance

January 15, 2008 NAMIC submitted comments last week about a draft white paper exploring the impact of climate change on insurance. In its comments to the National Association of Insurance Commissioners, NAMIC criticized the document for recommending that insurance commi... Read more

NAIC’s Market Regulation Committee Opts for New Database

December 11, 2007 In a surprise move during its wrap-up meeting last Tuesday, the NAIC’s Market Regulation & Consumer Affairs (D) Committee voted to create a new database for use in the collection and maintenance of data included in the market conduct annual statements. ... Read more

Mutual Insurers Not Expected to be Subject to FIN 48 Requirements for 2007 Year-End

December 11, 2007 No disposition is expected for 2007 on pending inclusion in statutory accounting of disclosures of uncertain tax positions after the Dec. 2 meeting of the NAIC’s Statutory Accounting Principles Working Group. The deliberation on FIN 48, an interpretatio... Read more

New Leadership Takes Over at NAIC

December 11, 2007 The new officers of the NAIC for 2008 took over at the completion of the December meeting and are now in place. All but one of the four officers had been previously elected in the traditional NAIC line of succession. Susan Voss, Iowa, the incoming secre... Read more

‘Framework Memorandum’ for New Reinsurance Regulation Moves Up NAIC Committee Hierarchy

December 11, 2007 Collateral adjusted for reinsurers’ financial strength state ports of entry and an NAIC office at the nexus of “mutual recognition” are fundamental components of a “framework memorandum” moving forward in the NAIC committee hierarchy. The memorandum is ... Read more

Industry Liaison Group Questions NAIC Transparency

December 11, 2007 Transparency in how the NAIC formulates its position on important issues, especially for purposes of congressional testimony, was the primary issue raised at the Industry Liaison Committee on Dec. 2 during the NAIC's winter meeting in Houston. During th... Read more

No Action Taken on NAIC’s Independent Adjuster Licensing Guidelines

December 11, 2007 It was expected that the Independent Adjuster Licensing Subgroup would complete its work on this project at the meeting in Houston last week. However, a conference call that was to have been conducted sometime before the meeting was never scheduled; a p... Read more

NAIC/AICPA Survey of MAR Adoption Shows Four States Intend Acting In 2007

December 11, 2007 A National Association of Insurance Commissioners/American Institute of Certified Public Accountants working group survey presented during the NAIC winter meeting in Houston, shows four states intended to adopt the NAIC’s Model Audit Rule, as revised fo... Read more

Insurance Industry’s Involvement Probably Small, but Disclosure of ‘Subprime’ Exposure Adopted

December 11, 2007 For insurers that hold material amounts of securities based on subprime mortgages, disclosure of amounts and any impairment will be necessary in the NAIC Annual Statement for 2007. The NAIC’s Executive Committee decided that regulators should examine th... Read more

Year of ‘Streamlined’ Meetings to End in Houston

November 30, 2007 The December meeting in Houston will mark the end of a quarterly meeting cycle under NAIC president Walter Bell’s system aimed at streamlining and efficiency. Whether the meeting format changes – fewer meeting sessions held over one less day – has been ... Read more

Intended Subprime Disclosure for Insurers is Object of Interested Parties’ Criticism

November 30, 2007 Insurers should expect to disclose information on their portfolios’ content of subprime debt or securities, and it’s just a matter of where and how in the NAIC Annual Statement and future audited financial statements. A proposal currently before the NAI... Read more

Public Hearing Set on Use of Catastrophe Models by Rating Agencies

November 30, 2007 The sequel to the Property and Casualty Insurance Committee’s fall public hearing “The Regulation of Catastrophe Modelers” will take place on Dec. 1. Participation in the hearing will be limited to representatives of the major insurance company rating a... Read more

Principles-based Regulation Draft Requires Insurers to Manage by Risk

November 30, 2007 A draft NAIC model act requires insurers’ boards to approve a risk management system regularly seen in the management of the insurer, or risk a number of sanctions for failing to do so. The draft, introduced earlier this year, will be discussed in Houst... Read more

NAIC Vows to Overhaul Reinsurance Regulation by Year’s End

November 30, 2007 Calibrating collateral according to an alien reinsurer’s financial risk is once again on the table in the NAIC, as is part of a “mutual recognition” ideal adopted by members of the NAIC’s Reinsurance Task Force. Collateral reduction has been a goal of a... Read more

Industry Liaison Group to Question Transparency

November 30, 2007 The NAIC's Industry Liaison Committee will meet in Houston on Dec. 2 during the organization's winter meeting. The primary issue being raised by industry representatives during this session will be transparency in how the NAIC formulates its position on... Read more

Climate Change and Insurance White Paper Delayed

November 30, 2007 The white paper on climate change and insurance is not expected to be presented by the Climate Change and Global Warming Task Force to its parent committee during the NAIC winter meeting in Houston. Completion of the draft has been delayed, in part beca... Read more

Personal Lines Working Group Will Not Meet at NAIC Winter Meeting

November 30, 2007 The Personal Lines Regulatory Framework Working Group continues to struggle as it attempts to complete its mission to produce a paper describing the status of personal lines rate and form regulation. Like many others, this working group will not meet du... Read more

Catastrophe Insurance Working Group Not on NAIC Winter Meeting Agenda

November 30, 2007 Consistent with the NAIC’s recent practice of convening all working group meetings by teleconference, this group is not scheduled to meet in Houston. The white paper that the group began drafting nearly two years ago, “Natural Catastrophe Risk: Creating... Read more

Licensing Guidelines Expected to Move Forward

November 30, 2007 The Independent Adjuster Licensing Guidelines is expected to be voted on favorably and passed along to the Market Regulation & Consumer Affairs Committee during the NAIC's winter meeting in Houston. The Producer Licensing Working Group planned to finish... Read more

NAMIC Comments on Virginia’s Intent to Adopt NAIC Model Audit Rule

November 6, 2007 NAMIC submitted comments on Oct. 29 disputing the need for the Virginia State Corporation Commission Bureau of Insurance to adopt the NAIC Model Audit Rule. NAMIC staff members spoke out against the MAR, as they have for more than two years, during the ... Read more

NAMIC: Industry Pays but No Say in NAIC’s Budgeting Process

November 6, 2007 NAMIC filed comments Oct. 26 to the National Association of Insurance Commissioners regarding the NAIC's 2008 budget and its process for industry input. In its testimony on the NAIC’s proposed $68.3 million budget for next year, NAMIC asserted that the ... Read more

Five Additional States to Require Market Conduct Annual Statements

October 4, 2007 Five additional states – Alabama, California, Montana, Rhode Island, and Washington – will begin requiring companies to file market conduct annual statements for 2008, according to an announcement made Saturday during the NAIC meeting in Washington, D.C... Read more

Personal Lines Regulatory Framework Paper Still in Process

October 4, 2007 The NAIC Speed to Market Task Force met on Monday morning in Washington. David Parsons, Alabama deputy commissioner and chair of the Personal Lines Regulatory Framework Working Group, reported on the status of the working group’s work. The group has bee... Read more

Many States Plan Administrative Adoption of Model Audit Rule, Survey Shows

October 4, 2007 An NAIC survey shows that using an administrative “rule” is by far the favored means of states to adopt the NAIC Model Audit Rule, which was revised last year to include measures derived from the Sarbanes-Oxley Act of 2002. The NAIC/AICPA Working Group,... Read more

Dispensing with Hard Copy Filing of NAIC Statements is Proposed

October 4, 2007 The NAIC, recipient of paper copies of insurers’ NAIC annual and quarterly statements, would just as soon do with bits and bytes rather than moldering paper. Cost savings are part of the plan that would relieve some 5,500 insurers from having to send ha... Read more

Statutory Accounting Group Requires Loss Data Even in Quarterly Statement

October 4, 2007 Quarterly disclosure of favorable and unfavorable development of loss and loss-adjustment expenses will be required in the event that a previous annual filing has revealed material change, the NAIC’s Statutory Accounting Working Group ruled. The disclos... Read more

Independent Adjuster Licensing Guideline Stalls

October 4, 2007 The Producer Licensing Working Group met on Sunday during the NAIC fall meeting in Washington, D.C. The Draft Independent Adjuster Licensing Guideline, under development for about a year, was on the agenda for approval. The plan was to move the guidelin... Read more

NAMIC Tells NAIC to Resist Calls for Tighter Regulation of Catastrophe Models that Would ‘Stifle Innovation in Assessing Risk’

October 4, 2007 NAMIC advised state insurance commissioners to be skeptical of bogus attacks on catastrophe models and the firms that develop them. The comments came during a public hearing held at the National Association of Insurance Commissioners’ quarterly meeting ... Read more

NAIC’s International Accounting Comments Presuppose Use Only in Connection with General Purpose Statements

October 4, 2007 An NAIC committee’s comments on a watershed International Accounting Standards Board discussion paper endorse new approaches for insurance accounting that most of the U.S. industry opposes. In its meeting Sept. 30 during the NAIC fall meeting in Washing... Read more

NAMIC Testifies Against Latest NAIC Proposal to Change Credit Rules for Alien Reinsurers’ Collateral

September 28, 2007 WASHINGTON (Sept. 28, 2007) – A seemingly “new” proposal to change and possibly reduce the amount of collateral required of alien reinsurers raises the same questions and concerns as a previous plan, according to the National Association of Mutual Insur... Read more

NAMIC Tells NAIC to Resist Calls for Tighter Regulation of Catastrophe Models That Would ‘Stifle Innovation in Assessing Risk’

September 28, 2007 WASHINGTON (Sept. 28, 2007) – The National Association of Mutual Insurance Companies (NAMIC) today advised state insurance commissioners to be skeptical of bogus attacks on catastrophe models and the firms that develop them. The comments came during a p... Read more

NAMIC Comments on NAIC’s Personal Lines Regulatory Framework Draft

September 25, 2007 NAMIC provided comments to the NAIC's Personal Lines Market Regulatory Framework Working Group in response to the working group's framework draft released on Aug. 28. In the Sept. 24 letter to David Parsons, working group chairman, NAMIC officials descr... Read more

One More Time on Reinsurance Collateral; This Time with More State Involvement

September 25, 2007 The REO is becoming the RSRD. Translation: The proposal for a Reinsurance Evaluation Office is passé, and the new proposal is a Reinsurance Supervision Review Department. Acronyms have come and gone in the NAIC’s long slog through the mine-filled territ... Read more

International Accounting Committee on Way to Endorsing Problematic Insurance Draft

September 25, 2007 With most of the U.S. insurance industry lining up against elements of what could become an international standard for insurance accounting, an NAIC committee appears poised to endorse major elements of the draft standard. The NAIC’s International Solve... Read more

Principles-Based Regulation: It’s New, but Does It Fit U.S. Insurers and Law?

September 25, 2007 Couldn’t you just tell insurers to keep enough capital rather than measuring their risk-based capital and every other aspect of their financial behavior? Whether or not life can be so simple, the NAIC’s Principles-Based Reserving Working Group is explor... Read more

Issue Paper Sought for Building FAS 158 Into Statutory Accounting for Pensions

June 11, 2007 The NAIC’s Statutory Accounting Principles Working Group voted June 3 in San Francisco to conform—in some degree—statutory accounting with a recent GAAP pronouncement that forces greater conservatism in pension and benefit accounting. The working group ... Read more

Accreditation Committee Exposes Audit Rule, Modifies Approach on Receivership Model

June 11, 2007 With a number of states planning adoption this year, the NAIC’s Financial Regulation Standards and Accreditation Committee voted June 2 to take the Model Audit Rule with its Sarbanes-Oxley content a step closer to accreditation status. The committee’s 9... Read more

New Model Law Procedures Lead to Confusion, Strange Results

June 11, 2007 When the NAIC announced in early May that its executive committee had adopted new procedures for the development and adoption of model laws, many thought the new procedures would be a positive move since fewer model laws would be adopted. However, quest... Read more

Reinsurance Evaluation Office Proposal Alive and Well; Could Be Separated From Collateral

June 11, 2007 The June 2 meeting of the NAIC’s Reinsurance Task Force may not have been an event of watershed decision making, but it included rather dramatic displays of regulators’ prejudices toward what they call “modernization” of reinsurance. The NAIC’s Reinsura... Read more

More States to Require SERFF

June 11, 2007 During the Sunday meeting of the Operational Efficiencies Working Group, the announcement was made that Minnesota, Rhode Island, and the District of Columbia intend to require filings through the NAIC’s System for Electronic Rate and Form Filing. Howeve... Read more

NAMIC Opposes Call for Mandatory Insurer Disclosure Requirements on Climate Change

June 5, 2007 SAN FRANCISCO (June 5, 2007) – The National Association of Mutual Insurance Companies (NAMIC) on Monday expressed concerns about a proposal that would force insurers to answer an extensive set of legalistic “interrogatories” covering virtually every asp... Read more

NAMIC Continues Fight Opposing New NAIC Model Audit Rule with Sarbanes-Oxley- Inspired Content

June 4, 2007 SAN FRANCISCO (June 4, 2007) – The National Association of Insurance Commissioners’ Financial Regulation Standards and Accreditation Committee advanced a new Model Audit Rule (MAR) with content based on the Sarbanes-Oxley Act, over the strong objections... Read more

NAMIC Continues Battle Against Changes to MAR as an Accreditation Item; Expected Vote at June Meeting

May 29, 2007 NAMIC has filed comments with the NAIC and will continue to battle against including the SOX-based changes to the Model Audit Rule as an accreditation standard. However, a majority in the NAIC’s Financial Regulation Standards and Accreditation Committee... Read more

Statutory Accounting Group Expected to Begin Revision of Rule for Defined Benefit Pensions

May 29, 2007 Whether to show a liability for benefits not yet vested is the key issue in revision of insurers’ accounting for defined benefit pension plans, comments to the NAIC show. NAMIC and an industry-interested parties’ group concerned with statutory accountin... Read more

Primary Insurers’ Dislike of ‘REO’ Proposal Makes Support Shaky Among Regulators

May 29, 2007 Observers trying to handicap viability of an NAIC’s plan to link collateral for reinsurance with financial strength of the reinsurer will watch closely for signs of strength and weakness in deliberations during the NAIC summer meeting, June 1-4 in San F... Read more

NAMIC: NAIC Working Group Advised to Resist Adopting New Pension Accounting

May 8, 2007 In comments to the NAIC’s Statutory Accounting Principles Working Group, NAMIC has asserted fault in potential new accounting authority and broader reservations about such accounting on the viability of defined benefit pensions. The working group is cur... Read more

NAIC: More States Get on Mandatory SERFF Bandwagon

April 17, 2007 Five states this year have mandated that insurers use the NAIC's System for Electronic Rate and Form filing. The new year kicked off with Georgia requiring filing via SERFF for property/casualty business as of Jan. 1. A few months later, on March 1, Sou... Read more

Company Adjusters No Longer Covered by Proposed Model Law

March 20, 2007 At the meeting of the Producer Licensing Working Group on March 10, the co-chair of the Independent Adjuster Model Act Subgroup announced that the provisions in the current draft of the Act requiring registration of insurance company employee adjusters ... Read more

Legislator Warns Rhode Island Regulator on MAR and IRMA Accreditation

March 20, 2007 A Rhode Island state legislator’s caution about new model laws entering the NAIC’s accreditation process—and about the process itself—was heard but apparently ignored during the NAIC’s winter meeting in New York City. Democratic Rep. Bryan Patrick Kenne... Read more

Collateral Wars Continue in Reinsurance Realm; Committee Charged to Weigh All Circumstances

March 20, 2007 Blessed “in concept” late last year by a key NAIC committee, details of a new reinsurance-collateral design linking reinsurers’ financial strength with collateral they post will be developed in succeeding months of 2008. Disliked by representatives of U... Read more

Pension-Accounting and Tax-Uncertainty Issues Sent to Subgroups for Study, Industry Comment

March 20, 2007 Accounting and actuarial premises underlying defined-benefit pension plans are under study by the NAIC’s Statutory Accounting Principles Working Group, which may emulate recent changes in recent GAAP guidance for such plans. The new GAAP guidance, known... Read more

NAIC: Regulators Agree to Reconstitute Working Group on Disaster-Related Claims Data

March 13, 2007 Members of the NAIC Financial Condition (E) Committee agreed at the NAIC spring national meeting this week to reconstitute a working group to take another look at the proposal to establish a national database for reporting disaster-related claims. The d... Read more

Audit Rule and Insolvency Law on Ramp with Other Items for Accreditation Status

March 13, 2007 An extensive agenda for the NAIC’s Financial Regulation Standards and Accreditation (F) Committee includes discussion of the NAIC’s new Model Audit Rule and new Insolvency Receivership Model Act. The NAIC’s accreditation process allows the NAIC to enfor... Read more

Working Group Seeks Input on Economic Advantages of Natural Disaster Interstate Compact Proposals

March 13, 2007 The NAIC Catastrophe Insurance (C) Working Group intends to ask modelers to perform an economic analysis of the potential to create an interstate compact for natural disaster risks. The decision to look at the economics of interstate compacts involving ... Read more

NAIC Releases Annual Homeowners Insurance Report

February 9, 2007 The National Association of Insurance Commissioners (NAIC) announced Thursday, Feb. 8 the release of the 2004 Homeowners Insurance Report, which provides data on market distribution and average cost by policy form and amount of insurance. The report pro... Read more

NAIC Expresses Concern About Climate Change

January 18, 2007 NAIC Expresses Concern About Climate Change Climate change.does it or doesn't it exist? The debate rages on in scientific circles, but in the halls of the National Association of Insurance Commissioners (NAIC), there is a general understanding that clim... Read more

Disposition of Large-Deductible Assets Subject of Receivership & Insolvency Task Force Vote

December 18, 2006 Strong polarities and contentious testimony were part of a vote Dec. 11 in San Antonio on treatment of what are known as “large-deductible” assets in insurer insolvency proceedings. Although a slightly obscure area in the broad range of issues regulator... Read more

Alien Reinsurers Gain Ground Against Collateral Despite U.S. Ceding Insurers’ Heavy Lobbying

December 18, 2006 Strong industry objections to members of the NAIC’s Reinsurance Task Force did not stop advancement in San Antonio of a proposal that would base alien and unauthorized reinsurers’ collateral requirements on those insurers’ financial strength. The propos... Read more

Personal Lines Regulatory Framework Group Stalls in San Antonio

December 18, 2006 Even though many expected the Personal Lines Regulatory Framework Working Group to complete its revised mission during its meeting on Dec. 9, the group continued to be bogged down in indecision and was unable to agree how to end its work. The current co... Read more

NAIC President Iuppa Headed to Zurich Group in January

December 18, 2006 Alessandro A. Iuppa, outgoing NAIC president and currently Maine’s insurance superintendent, will become head of government affairs in North America for Zurich Financial Services Group in January. An announcement from Zurich said Iuppa would also have t... Read more

Independent Adjuster Model Act Subgroup Looks at Early Draft

December 18, 2006 The Independent Adjuster Model Act Subgroup of the Producer Licensing Working Group met on Sunday, Dec. 11, and essentially began its task of developing a model law for licensing of independent claims adjusters. The work of the subgroup will be easier t... Read more

NAMIC Testifies at NAIC Hearing on Climate Change and Insurance

December 18, 2006 Insurers could ease the economic loss and human suffering caused by climate change through less regulatory oversight, according to testimony given by Robert Detlefsen, NAMIC’s vice president for public policy, at a public hearing on “Climate Change and ... Read more

Uninsured Motorist Issues Group Wraps Up Work, Dissolves Itself

December 18, 2006 The Uninsured Motorist Issues (C) Working Group met on Dec. 11 in San Antonio and, as expected, completed its work and put itself out of business. This working group was first formed to consider the possibility of creating a national database for verifi... Read more

NAIC Stat Accounting Committee Forms Subgroup to Consider Inclusion of New Pension Requirements

December 18, 2006 Blending pension liabilities into insurers’ balance sheets is a possibility, and the NAIC’s Statutory Accounting Principles Working Group is taking a deliberate look at that and other accounting changes that would affect companies with defined-benefit p... Read more

Hearing on Urban Insurance Issues = Déjà vu All Over Again

December 18, 2006 The Market Regulation & Consumer Affairs (D) Committee held a public hearing on Monday, Dec. 11 to discuss marketplace issues, specifically affordability and availability of personal lines coverage in urban areas. The hearing was requested by several of... Read more

Insolvency Issue and Audits of Affiliates Among Prominent Solvency Matters

December 7, 2006 It’s called the “large-deductible” issue in current parlance and relates to the disposition in the instance of an insurer’s insolvency of payments to be made by insureds for claims of their employees. Complex? Obscure? A little bit, but it’s of major co... Read more

Regulators on Out Ramp Scramble to Push NAIC Reinsurance Evaluation Office

December 7, 2006 Passage of a highly controversial proposal to install the NAIC at the apex of all reinsurance transactions in this country will be the focus of proponents’ efforts during the NAIC’s winter meeting in San Antonio. Led by Massachusetts’ insurance commissi... Read more

Personal Lines Regulatory Framework Group to Complete Work

December 7, 2006 The NAIC Personal Lines Regulatory Framework Working Group will meet on Saturday morning in San Antonio and plans to conclude its work. The working group, part of the Speed to Market Task Force, began the year with an ambitious plan to develop a model l... Read more

Maine: Iuppa Leaving Regulatory Ranks After 20 Years; NAMIC Comments

November 28, 2006 Maine Superintendent of Insurance, Alessandro A. Iuppa, the current president of the National Association of Insurance Commissioners (NAIC), announced Nov. 28 that, effective Jan. 13, 2007, he is leaving the insurance regulatory community after 20 years... Read more

New Interrogatory for Quarterly, Annual Statements Seeks Ethics Disclosure from Senior Management

November 21, 2006 With inception in 2007, insurers filing the NAIC annual statement will be subject to a new interrogatory on existence and applicability of codes of ethics. Originating in the NAIC’s recent “raise-the-bar” effort on integrity of financial reporting, the ... Read more

Regulators Running Full Steam on Proposal for NAIC Reinsurance Evaluation Office

November 9, 2006 The NAIC’s proposal for a reinsurance proposal that bases collateral on financial strength has the appeal of logic, but is it a proposal that is needed? That question – whether a departure from the current regime is needed – underlies efforts under way ... Read more

NAMIC Urges NAIC to Disavow Florida Commissioner’s Statements on ‘Price Controls’

November 6, 2006 Robert Detlefsen, NAMIC's vice president of public policy, sent a letter last Friday to Alessandro Iuppa, president of the National Association of Insurance Commissioners, urging the NAIC to distance itself from statements made on its behalf by Florida ... Read more

NAMIC Posts MAR Implementation Guide Draft on Website

October 23, 2006 NAMIC member companies now have access to the National Association of Insurance Commissioners' draft of its " Implementation Guide ” that provides details for new filings and requirements of the new Model Audit Rule, which prescribes requirements for in... Read more

NAMIC Comments on Proposed NAIC Budget

October 23, 2006 Asking for greater industry participation in the formation of the National Association of Insurance Commissioners' budget, comments filed by NAMIC on Oct. 16 also seek cancellation of modest increases in the NAIC’s database fees, a major source of NAIC ... Read more

NCOIL Cautions State Legislators About Implementation of SOX Requirements; NAMIC Comments

September 29, 2006 The president of the National Conference of Insurance Legislators (NCOIL) has sent a letter to the chairs of state insurance committees drawing their attention to the recently approved revised NAIC Model Audit Rule and the Sarbanes-Oxley (SOX) requireme... Read more

NAIC Proposed 2007 Budget Projects Increase in Revenue

September 25, 2006 The NAIC’s proposed budget for 2007 shows revenue at $63.4 million, a 6.8 percent increase from last year. The proposed budget also denotes a 6.24 percent increase on expenses. Database fees for group and individual filing fee caps are generally marked ... Read more

Changing Alien Reinsurers’ Collateral Requirements: Lots of Questions, Pro and Con, and a Few Answers

September 25, 2006 Changing Alien Reinsurers’ Collateral Requirements: Lots of Questions, Pro and Con, and a Few Answers On Tuesday, Sept. 19, NAMIC will host a panel discussion at its 111th Annual Convention in Tampa, Fla., for discussion and debate of the full-collatera... Read more

Like It or Not, U.S. Insurers Will Feel International Accounting Standards, Including Fair Value

September 25, 2006 Like It or Not, U.S. Insurers Will Feel International Accounting Standards, Including Fair Value It’s those foreign entanglements again, and this time it’s not about oil or religion. Those who make the rules for U.S. and foreign accounting have gotten t... Read more

Ponderous Text for Risk-Based Financial Exams Begins Trip Through NAIC Hierarchy

September 15, 2006 Although states’ implementation of a newly revised and risk-focused mode for financial examinations may not be simultaneous, guidance for examiners, weighing in at 430 pages, is on its way through the NAIC vetting process. The draft of the revised Finan... Read more

Regulators Take Over ‘Ratings Proposal’ for Reinsurer Collateral; Promise Plan Development By December

September 15, 2006 Regulators have taken over from splintered interested parties a germinal plan that would radically re-structure the use of collateral that is now used to secure assumptions by alien reinsurers in their dealings with U.S.-domiciled reinsurers. At the clo... Read more

New Model Audit Rule Implementation Guide Adopted, Readied for December Final Passage

September 15, 2006 A 40-page guide for compliance with the NAIC’s new Model Audit Rule passed the NAIC’s Financial Condition (E) Committee Monday during the organization’s fall national meeting. Known as the Implementation Guide, the document provides detail for new filin... Read more

Reinsurance Study Group OKs Easing Annual Finite Re Disclosure

September 15, 2006 Decisions of the NAIC’s Property and Casualty Reinsurance Study Group made on Saturday in St. Louis will affect insurers’ reporting of reinsurance contracts in the NAIC Annual Statement. Although it is relief granted only after companies scramble to gat... Read more

Producer Licensing Group to Develop Independent Adjuster Model Law

September 15, 2006 The Producer Licensing (D) Working Group met on Monday and decided to go forward with the development of a model law for licensing independent insurance adjusters. The decision was favored by the American Association of Independent Claims Professionals.... Read more

NAIC Adopts Model Bulletin on Flood Insurance Producer Training

September 15, 2006 During its plenary/executive committee meeting on Sunday, the NAIC adopted a model bulletin that the states can use to communicate with producers and insurers about the federal requirements for training of agents who sell flood insurance policies. The f... Read more

Uninsured Motorist Working Group Discusses Standards for Monitoring Compliance

September 15, 2006 The Uninsured Motorist (C) Working Group met on Saturday afternoon in St. Louis and continued its discussions on how the NAIC can help with the process of verification of automobile insurance required by the state financial responsibility laws. While th... Read more

Statutory Accounting Agenda Includes Draft Change for Investment Impairment

September 15, 2006 "Other than temporary impairment," or OTTI in accounting parlance, was just one item in a fall NAIC accounting agenda that required expansion into two subsequently scheduled teleconferences. The Emerging Accounting Issues Task Force exposed a proposed r... Read more

Regulators Still Trying to Approve a Natural Catastrophe Insurance Plan

September 15, 2006 The NAIC Catastrophe Insurance (C) Working Group is scheduled to hold a teleconference on Sept. 18 to vote whether to adopt the latest version of its white paper, " Natural Catastrophe Risk: Creating a Comprehensive National Plan." If adopted, the white... Read more

Regulators Moving Forward on Creating Disaster Reporting Database

September 15, 2006 Members of the NAIC Disaster Reporting (E) Working Group are moving ahead with plans to create a new NAIC database to coordinate disaster reporting by the insurance industry. At a Sept. 10 meeting in St. Louis, as part of the NAIC fall national meeting,... Read more

Personal Lines Rating Framework Group Exposes Draft White Paper

September 15, 2006 The Personal Lines Market Regulatory Framework (EX) Working Group met on Saturday morning in St. Louis and introduced a draft white paper entitled "Personal Lines Regulatory Framework." The white paper, developed primarily by NAIC staff and based, in pa... Read more

St. Paul Travelers’ Panik Retiring

September 15, 2006 Saying she’s "not coming back" as a consultant or in any other capacity, St. Paul Travelers’ Paula Panik, a vice president with regulatory responsibilities, will retire this month and was given accolades during the NAIC fall meeting in St. Louis. Panik ... Read more

Uninsured Motorist Issues Group Continues Work

September 5, 2006 The Uninsured Motorist Issues Working Group, a part of the Property & Casualty Insurance (C) Committee, will meet Saturday, Sept. 9 to continue its discussion on automobile insurance verification systems. This working group was created when a vendor app... Read more

Implementation Guide for New Audit Rule Expected to Pass NAIC/AICPA Working Group Vote

September 5, 2006 The 40-page Implementation Guide intended to help compliance with the NAIC’s revised Model Audit Rule will be subject to vote Monday during the fall NAIC meeting in St. Louis and may progress to the working group’s parent committee for another vote. The... Read more

Ratings Proposal to Calibrate Reinsurer Collateral Gets More Definition Despite Cedents’ Reservations

September 5, 2006 Motivations of state regulators who are proponents of radically altering the current collateral regime for alien reinsurers remain cloudy, but the fall NAIC meeting, Sept. 9-12, will feature further development of a proposal to effect such change. A vol... Read more

Personal Lines Rating Model Abandoned

September 5, 2006 The NAIC’s Personal Lines Regulatory Framework (EX) Working Group has abandoned its attempt to develop a personal lines rating model law; instead, when the group meets on Saturday, Sept. 9 in St. Louis, it will turn its attention to drafting a position ... Read more

‘We Don’t Want Bifurcation!’ will Likely be Chorus Heard During NAIC Reinsurance Study Group Meeting

September 5, 2006 Continuing regulatory stress about reinsurance that has purposes other than risk transfer gets more debate during the NAIC meeting in St. Louis. Although many state insurance regulators have recently been low key in their thoughts about requiring bifurc... Read more

NAIC: Comments Submitted to Personal Lines Rating Law Group

August 21, 2006 Last Tuesday, testimony was submitted to the NAIC’s Personal Lines Regulatory Framework Working Group on behalf of NAMIC and PCI by Philip R. O’Connor, Ph.D., a former regulator who has written widely on both insurance and utility matters. He made the c... Read more

NAMIC: Letter to NAIC Asserts Rate, Form Model Draft ‘Step Backward’

July 24, 2006 NAMIC Regulatory Affairs Counsel Marsha Harrison, in a July 13 letter to the NAIC Personal Lines Market Regulatory Framework (EX) Working Group, said an NAIC model setting out a “file and use” system of rate regulation “would not represent progress towa... Read more

Proposed NAIC Rate, Form Model Draft Represents ‘Step Backwards,’ NAMIC Official Asserts

July 13, 2006 INDIANAPOLIS (July 13, 2006) – An official of the National Association of Mutual Insurance Companies (NAMIC) said today that a proposed rate and form filing draft being circulated by a National Association of Insurance Commissioners (NAIC) Working Group... Read more

SVO Once Again Object of Industry’s Ire; This Time For Surprise on ‘Hybrid Securities’

June 15, 2006 A phrase used Tuesday by those enraged as a result of recent NAIC Securities Valuation Office actions can be used to sum up their objections: "Regulatory event risk." The SVO's recent action to classify a security as having characteristics of common sto... Read more

Uninsured Motorist Working Group Hears Vendors & Others at Hearing

June 15, 2006 The Uninsured Motorist Working Group, a subgroup of the Property & Casualty Insurance (C) Committee, met Friday afternoon to hear presentations by auto insurance verification system vendors interested in selling their systems to the NAIC or the states. ... Read more

Personal Lines Regulatory Framework Group Releases New Draft Model

June 15, 2006 The Personal Lines Regulatory Framework Working Group released a new draft model law on Thursday, June 8, the day before many meeting participants traveled to Washington for the NAIC meeting. The timing allowed little opportunity for in-depth review of ... Read more

Handbook for Risk-Focused Financial Exams Held in Committee After Industry Objections

June 15, 2006 Interested parties' reservations about state financial examiners' new handbook for risk-focused financial examinations caused the document to be held Monday during the NAIC's summer meeting in Washington, D.C. Problems cited by NAMIC and other intereste... Read more

Accounting for Guaranty and Other Funds Set for Overhaul

June 15, 2006 Regulators concerned with statutory accounting launched an effort Monday to address problems in insurers' accounting for assessments of guaranty funds and other state-sanctioned levies. State guaranty funds are the vehicle for collecting capital from su... Read more

NAMIC Makes Regulatory Class-Action Abuse Presentation

June 15, 2006 Robert Detlefsen, NAMIC's director of public policy, was the keynote presenter during the Class Action Insurance Litigation Working Group meeting on June 10. Detlefsen spoke on regulatory class-action litigation abuse whereby a plaintiff attorney seeks ... Read more

Ceding Insurers’ Group Not Buying Alien Line; NAIC President Wants ‘Ratings’ Approach to Collateral

June 12, 2006 With alien reinsurers and domestic ceding insurers digging in on opposite sides of a growing schism on use of collateral, NAIC President Al Iuppa Saturday pressed forward with a previously signaled move toward adjusting collateral requirements for not o... Read more

NAIC: MAR Incorporating Mitigated SOX Features Passes

June 12, 2006 The NAIC’s executive and plenary committees voted yesterday afternoon during the NAIC’s summer meeting in Washington, D.C., to adopt a revised Model Audit Rule incorporating certain features of the Sarbanes-Oxley Act of 2002. However, the vote was on a ... Read more

Industry Says Delay Risk-Focused Examinations Until Roll-Out Problems Get Vetting, Remedy

June 5, 2006 Members of an NAIC committee poised to deliver materials that are the new blueprint for financial examinations of insurers received caution this week from most of the insurance industry about prospective conflicts in use of the new methodology, which em... Read more

Uninsured Motorist Issues Working Group to Hold Hearing

June 5, 2006 The Uninsured Motorist Issues (C) Working Group will hold a public hearing on Friday afternoon—prior to the official beginning of the NAIC summer meeting—to gather information about automobile insurance verification and enforcement systems. It appears t... Read more

So What Would Make A Ceding Insurer Do Without Full Reinsurance Collateral?

June 5, 2006 In an era when solvency regulators want more assurance and less risk, it's a regulatory move that has its share of conflict and cross purposes: Reinsurance collateral. Alien reinsurers—principally well heeled western European companies that do very larg... Read more

Personal Lines Regulatory Framework Group Plods On

June 5, 2006 The Personal Lines Market Regulatory Framework (EX) Working Group will meet in Washington on Monday morning. This group, which has taken several forms under several leaders since coming into existence in 2004, is tackling an issue the NAIC has tried to ... Read more

Exec. and Plenary Vote on SOX in State Regulation Planned for NAIC’s Meeting in D.C.

June 5, 2006 Revision of the NAIC's Model Audit Rule may come to partial closure during the NAIC's summer meeting in Washington, D. C., June 10-13, when top committees vote on its passage. "The draft to be considered by the NAIC's Executive and Plenary Committees in... Read more

SOX: NAIC Passes New Model Audit Rule; One Member Stands Alone

May 22, 2006 In a vote that readies a controversial regulatory model for near-final passage, the NAIC’s Financial Regulation (E) Committee voted Thursday to pass a new Model Audit Rule that includes modified content from the Sarbanes-Oxley (SOX) Act of 2002. Utah Co... Read more

Regulation: Interstate Compact Nears Implementation Phase

May 15, 2006 NAMIC members who have affiliates that write life and annuity products can look forward to implementation of the Interstate Product Regulation Compact very soon, if all goes as expected. When the Alaska Legislature passed the Compact (HB 439), it was th... Read more

NAIC Committee Further Softens SOX Content in Model Audit Regulation, Postpones Vote

May 12, 2006 INDIANAPOLIS (May 12, 2006)—A bundle of changes caused an NAIC panel with key importance in progression of the NAIC’s Model Audit Regulation to postpone a planned vote that would have advanced the model to a superior committee. Content in the model deri... Read more

NAMIC: Memo Outlines Reasons for SOX Opposition

May 8, 2006 On May 11, the NAIC committee charged with considering the application of SOX-like standards to mutual insurance companies will meet in Atlanta and is expected to vote on the proposal. If approved, the measure will move on to the full NAIC for further c... Read more

Statement From NAIC President Alessandro Iuppa on Federal Insurance Bill

April 12, 2006 “As state government officials responsible for supervising the insurance industry, members of the National Association of Insurance Commissioners are proud that our nation’s state-based system of insurance protections has successfully safeguarded consum... Read more

Colorado: ‘Expanded’ NAIC Model Market Conduct Bill is Introduced in State Legislature

April 10, 2006 On March 23, HB 1383, Concerning the Regulation of Insurers' Market Conduct by the Commissioner of Insurance, was introduced in the House and assigned to the House Business Affairs and Labor Committee. It was heard by the committee on April 5, and the C... Read more

NAMIC: Simplification of Extra-Contractual Obligations Proposal Meets Approval of NAMIC

April 10, 2006 A joint meeting of state regulators decided Tuesday to take a different route after abandoning a pending proposal to make insurers disclose extra-contractual obligations (ECOs) in new schedules of the NAIC Annual Statement. ECOs are claims paid or incur... Read more

NAIC: Key Manual for Risk-Focused Financial Examinations Gets Criticism in Lengthy NAIC Session for Vetting

March 27, 2006 A new draft of the Financial Examiners Handbook was the topic of a six-hour meeting on Monday, March 20. During the meeting, industry suggestions were heard on the edits of the current draft, which adopts a contemporary philosophy for conduct of state r... Read more

Market Regulation Survey Results Not Yet Available

March 13, 2006 On March 6, the Uniformity Working Group of the Market Regulation & Consumer Affairs Committee met to discuss, among other topics, the recent surveys conducted to determine the success of the NAIC's market reform initiatives. The surveys' intent was to ... Read more

Blanks Working Group Again Defers Added Extra-Contractual Disclosure

March 13, 2006 Heeding industry comments that most insurers' data systems are not now configured to capture data on extra-contractual obligations generated by litigation, the NAIC's Blanks Working Group decided on March 4 to again to defer a proposal for added disclos... Read more

‘We’re Going To Decide’ Alien-Collateral Question NAIC President Declares to Reinsurance Task Force

March 13, 2006 In Orlando on March 4 when no fewer than three NAIC Committees dealt with international insurance solvency regulation, NAIC President Al Iuppa told two of those committees that one of the most intransigent and immediate questions—alien reinsurance colla... Read more

NAIC Ignores Caution from Insurance Legislators; Presses Ahead With SOX Content for Mutuals

March 13, 2006 Despite a contrary resolution from an organization of state legislators, the NAIC/AICPA Working Group voted 14-1 March 6 to approve the revision of the NAIC Model Audit Rule (MAR) to include content from the Sarbanes-Oxley (SOX) Act. The vote came durin... Read more

Uninsured Motorist Issues Working Group Organizes

March 13, 2006 On March 4, the Uninsured Motorist Issues Working Group met for the first time to hammer out its strategy in reducing the numbers of uninsured motorists. While this issue has been discussed at previous NAIC quarterly meetings, this is the first time a s... Read more

Personal Lines Regulatory Framework Group Encounters Industry Resistance

March 13, 2006 The Personal Lines Regulatory Framework Working Group, a subgroup of the Speed to Market Task Force, met on March 4 for a one-hour meeting to discuss recommendations for a personal lines regulatory framework to its parent committee by the June NAIC meet... Read more

New Fingerprint Model Law Adopted in Record Time

March 13, 2006 The Market Regulation & Consumer Affairs Committee met on Tuesday, March 7, and quickly adopted a revamped Authorization for Criminal History Record Check Model Act (Fingerprint Model Law) for consideration by the NAIC general membership either at its J... Read more

Revision of Accounting For Guaranty, Other Funds Approaches Soon Ready for Debut

March 13, 2006 Statutory accounting for assessments made on insurers by guaranty, workers' compensation, second-injury, and other species of state funds appeared ready for overhaul in the NAIC's Statutory Accounting Principles (SAP) Working Group meeting held on March... Read more

NAIC Spring Meeting: ‘We’re Going To Decide’ Alien-Collateral Question NAIC President Declares to Reinsurance Task Force

March 6, 2006 On a Saturday, March 4, in Orlando when no fewer than three NAIC committees dealt with international insurance solvency regulation, NAIC President Al Iuppa told two of those committees that one of the most intransigent and immediate questions—alien rein... Read more

Uninsured Motorists: Committee Discussions to Continue

March 2, 2006 The Uninsured Motorist Issues Working Group, a part of the NAIC Property & Casualty Insurance Committee, will meet on Saturday afternoon to continue its discussions. This is a newly formed working group and its exact mission is still in the formative st... Read more

Fingerprint Model: New Model to Appear in Orlando

March 2, 2006 The much-debated "Authorization for Criminal History Record Check Model Act," commonly referred to as the "fingerprint model," seemed to be on life support in January when, during a conference call held by the Market Regulation & Consumer Affairs (D) Co... Read more

Alien Reinsurers: European Reinsurers March On in Quest to Reduce Collateral for U.S. Contracts

March 2, 2006 Just how global is the business world, and how much trust should be given alien reinsurers, especially those in western Europe that write very large amounts of business with U.S. primary insurers? Although NAIC deliberations in Orlando won't be disposit... Read more

SOX: NAIC Committee Will Vote for Reduced SOX Proposal but Future Votes Uncertain

March 2, 2006 As NAIC regulators prepare to vote for the addition of certain Sarbanes-Oxley content to state regulation, NAMIC continues to raise strong objections to the internal accounting control measures that may be forced upon mutual insurers. Regulators on the ... Read more

Personal Lines Rate Regulation: Uniform Approach Still Undecided

March 2, 2006 The NAIC has attempted for years to develop a uniform approach to property and casualty personal lines rate regulation. Those efforts have been largely unsuccessful as regulators have been unable to reach consensus on this rather sensitive issue. Anothe... Read more

Market Regulation Committee: Industry Surveys to Be Discussed

March 2, 2006 The Uniformity Working Group of the Market Regulation & Consumer Affairs (D) Committee will meet Monday to discuss, among many agenda items, surveys being conducted by both the industry and state regulators. Various insurance trade organizations, includ... Read more

Proposed CAT Plan Not on Formal Agenda; Likely to be Subject of Further Discussion

March 2, 2006 The Catastrophe Insurance (C) Working Group, a unit of the NAIC Property & Casualty Insurance Committee, will meet from 10 a.m. to 12 p.m. on Saturday, March 4. Conspicuously absent from the group’s agenda, however, is any direct reference to the Nation... Read more

Blanks Proposal: Industry Tells Blanks Group That Systems Limitations Preclude ‘Extra Contractual’ Isolation and Disclosure

March 2, 2006 Expensive systems changes would be necessary for insurers to be able to report what are known as "extra-contractual obligations," resulting from lawsuits engendered in the claims process, NAMIC and other industry members have told the NAIC Blanks Workin... Read more

NCOIL Adopts Resolution against NAIC SOX Proposal

February 27, 2006 The National Conference of Insurance Legislators (NCOIL) adopted a resolution Saturday at its spring national meeting formally opposing efforts at the NAIC to apply elements of the Sarbanes-Oxley Act to non-public insurance companies. The resolution was... Read more

Treasury Addresses Reg Reform; Offers no Position on Federal Oversight

February 13, 2006 The Treasury Department has no position on whether the federal government should have a role in regulating the insurance industry, a department official told the National Association of Insurance Commissioners. Countering what he called “all the noise a... Read more

NAIC: NAMIC Urges Fingerprint Proposal to be Set Aside

February 13, 2006 NAMIC and four other major insurance industry trade organizations have sent a letter to NAIC President Alessandro Iuppa, Maine's insurance superintendent, and Iowa Insurance Commissioner Susan Voss, chair of the NAIC's Market Regulation and Consumer Aff... Read more

NAMIC Opposes NAIC as Industry Database Czar

February 8, 2006 INDIANAPOLIS (Feb. 8, 2006)—The National Association of Mutual Insurance Companies (NAMIC) questions the trend by the National Association of Insurance Commissioner (NAIC) create new insurance industry databases. “The proliferation of NAIC databases und... Read more

NAMIC: Schmelzer Sends Letter to Insurance Regulators

February 6, 2006 On Jan. 27, Roger Schmelzer, NAMIC's senior vice president of state and regulatory affairs, e-mailed a letter to all insurance regulators advising them of NAMIC President Chuck Chamness's “Final Say” article in the National Underwriter. The article outl... Read more

NAIC: Updated TRIA Disclosure Forms

February 6, 2006 The NAIC's Terrorism Insurance Implementation Working Group met by conference call on Jan. 26 and adopted updated policyholder disclosure forms for use by insurers. The forms, updated versions of the disclosure documents first developed by the NAIC foll... Read more

NAMIC to NAIC: ‘Alternate SOX Proposal Still Too Much’

February 1, 2006 INDIANAPOLIS (Feb. 1, 2006)—An alternate proposal to impose Sarbanes Oxley Act provisions on mutual insurers, “errs in applying to mutual insurers costly and burdensome internal accounting control measures not demonstrated to preclude or materially redu... Read more

NAMIC Objects to NAIC Fingerprint Model

January 16, 2006 NAMIC filed comments with the NAIC on Jan. 6, objecting to the latest draft of the “Authorization for Criminal History Record Check Model Act,” currently under consideration for approval by the Market Regulation & Consumer Affairs (D) Committee. The “fi... Read more

NAMIC Takes Issue with NAIC Fingerprint Model Act

January 10, 2006 INDIANAPOLIS (Jan. 10, 2006)—The National Association of Mutual Insurance Companies (NAIC) has told the National Association of Insurance Commissioners (NAIC) that it is opposed to the regulators’ proposed fingerprint model law because of the model’s co... Read more

Compulsory ‘All-Perils’ Coverage Would Worsen Disaster Insurance Problems, NAMIC Tells Regulators

January 9, 2006 A “Natural Catastrophe Risk Plan” drafted by the National Association of Insurance Commissioners (NAIC) has the potential to “damage private insurance markets and exacerbate the very problems it seeks to correct,” NAMIC warned in comments submitted to t... Read more

NAIC, States and Treasury Department Address TRIA Extension

January 9, 2006 On Dec. 28, the NAIC’s Terrorism Insurance Implementation Working Group adopted a model bulletin intended to assist state regulators and insurance companies in implementing the provisions of the recently enacted Terrorism Risk Insurance Act (TRIA) exten... Read more