Comments on NAIC Proposed Form A Review Best Practices Due August 19, 2016
Jul 29, 2016
The National Association of Insurance Commissioners’ National Treatment and Coordination Working Group is accepting written comments on a draft of Form A Review Best Practices until August 19, 2016.
The proposed Best Practices are ultimately intended to be a tool for regulatory review and analysis of a Form A in regard to insurance company acquisitions. They comprise nine specific factors:
- Initial Review
- Background, Identity and Risk Profile of Acquiring Persons
- Communication and Record Maintenance
- Transaction Review
- Purchase Consideration
- Insurance Operations
- Market Impact
- Post-Approval Considerations
- Post-Acquisition Considerations
To view the document, click here. To read discussion on the development of the proposal, click here (starts on Page 25).
Meanwhile, the Company Licensing Transactions Subgroup has been charged with identifying ways to streamline the insurance company licensing application process via the Uniform Certificate of Authority Application (UCAA), reduce state-specific requirements and promote uniformity among all U.S. jurisdictions.
The Subgroup met this week to discuss Form 2C and instructions for mergers, as well as states’ processes for reviewing insurers’ business plans, plans of operation and financial statements.
To view the agenda and meeting materials, click here.
No meetings are scheduled for the Biographical Third-Party Review Subgroup, which is charged with encouraging uniformity of requirements in relation to individuals’ fitness and propriety, and the company’s responsibility in notifying state insurance departments of concerns or changes to key individuals, among other tasks.
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