NAIC Executive Committee to Consider Release of Insurance Holding Company Model Law Revisions for Public Comment

The National Association of Insurance Commissioners (“NAIC”) Executive Committee will meet on November 10 at 3:30 p.m. (ET) via conference call to discuss the release for comment of proposed changes to the NAIC’s Insurance Holding Company Model Law (#440).

• It is emphasized that the purpose of the call is not to adopt the proposed changes, but merely to agree to release them for public comment.

Former Nebraska Insurance Director Ann Frohman included the following message to regulators and interested parties in advance of next Wednesday’s call:

Dear Executive Committee Members:   

As you know, I chaired. the Group Solvency Issues Working Group which was charged with amending the Holding Company Model Act and Regulation. The amendments were adopted by E Committee and are now before Executive Committee. One of the key features of the amended model is the addition of an enterprise risk supplemental filing at the group level. The model as adopted by E called for filing with the NAIC and treated the filing as confidential.  Throughout the process, industry objected to NAIC receiving the filing and asked for enhanced confidentiality protections.  I have had multiple conversations with ACLI and PCI since adoption to try and address their concerns.  Attached to this e-mail is what I proposed to both ACLI and PCI several weeks ago.

The focus here is to:

1) remove the requirement that there be a supplemental filing directly with the NAIC

2) reference the lead state as the point for the supplemental filing and,

3) specifically require substantially similar laws before a state can share the supplemental filing with other states.

The attached draft has only my additional changes highlighted. Both groups assure me they are working to come up with language they find acceptable, but unfortunately neither completed its work before I completed my time as Director.  I hope that as Executive Committee moves forward with its consideration of the Models, you will consider these amendments.  As you know, strengthening group supervision and information sharing among regulators on issues concerning groups is a crucial piece of the NAIC’s solvency modernization initiative. I believe these proposed amendments allow for appropriate treatment of the necessary information.”

Interested parties can participate in the teleconference by calling Chorus Call at (412) 317-6715 shortly before the call, then asking for the NAIC Executive Committee call to be connected.  If you are not registered with Chorus Call, call (800) 967-4633 or use the following hyperlink:  https://services.choruscall.com/naic/forms/registerip

Copies of the revised Insurance Holding Company Model Law and additional proposed changes to it developed by Ms. Frohman prior to her departure from office are attached for review.

Should you have any questions or comments, please contact Colodny Fass.