National Association of Insurance Commissioners (NAIC) 2012 Fall National Meeting Summaries, Meeting Materials

The National Association of Insurance Commissioners (“NAIC”) completed its 2012 Fall National Meeting yesterday, December 2, in Washington D.C.

Two public hearings on Catastrophe Issues and Long-Term Care highlighted the four-day event, at which Louisiana Insurance Commissioner Jim Donelon was elected as 2013 NAIC President, along with other officers.

The Catastrophe Issues hearing, intended to provide an opportunity for discussion how to make post-disaster claim-settlement practices more consumer-friendly, also explored perspectives on the insurer impact of diverse post-catastrophe regulatory requirements.

Notably, the NAIC membership overwhelmingly voted to adopt the Valuation Manual, which defines methods used by regulators and insurers to calculate the reserves of insurance companies.  Principles-Based Reserving (“PBR”) incorporates factors beyond interest rates and mortality to better capture portfolio risks and ensure corporate solvency.

Members also voted to create an executive-level Joint Working Group of the Life Insurance and Annuities and Financial Condition Committees that will require consumer participation in the design of the transition to the PBR process.  The new Working Group will focus on guidelines to ensure there are adequate resources for states to implement PBR, transition reserving practices, compile data and engage consumers. 

With its adoption, the Valuation Manual, along with revisions to the Standard Valuation Law and Standard Nonforfeiture Law for Life Insurance, can be now be presented to states for consideration as a package in time for the beginning of their respective 2013 legislative sessions.

To view summaries of individual committee and task force meetings, along with hyperlinks to complete meeting materials, click here.

Following are some actions taken by various committees:

 

Executive Committee

At its meeting on November 30, the Executive Committee:

• Adopted model law development requests for amendments to the:
  • Property and Casualty Actuarial Opinion Model Law (#745)
  • Long-Term Care Insurance Model Act (#640)
  • Long-Term Care Insurance Model Regulation (#641

Auto Insurance Study Group

The Auto Insurance Study Group met on November 30, 2012.  During this meeting, members discussed issues related to states’ requiring companies to complete a risk classification survey.  The NAIC Staff will be asked to create two proposals for the Study Group to consider.  One proposal would consider the dissemination, collection and analysis of data contained within the risk classification survey.   The other would contemplate an alternative data-collection plan focused on market performance factors, rating factors and tiers, and other rating information as a supplement or in lieu of the risk classification survey.

 

Catastrophe Insurance Working Group

The Catastrophe Insurance Working Group met on November 30, during which members heard a presentation on hurricane mediation programs.  They also discussed issues pertaining to “Superstorm Sandy,” which included information on data calls, uniformity issues and FEMA-related consumer information. 

The Group resolved to draft a letter pertaining to a National Catastrophe Fund.

Click on the hyperlinks below to go directly to each document, or click here for the latest updates to those meetings for which summaries have not yet been posted.

 

Group (Click link to be directed back to the group’s page) Agenda Materials Summary

Executive (EX) Committee REVISED 11/30/12 Agenda REVISED 11/30/12 Materials Summary Executive (EX) Committee/Plenary REVISED 12/2/12 Agenda REVISED 12/2/12 Materials Summary Government Relations (EX) Leadership Council Agenda Pending Summary Producer Licensing (EX) Task Force REVISED 11/28/12 Agenda REVISED 11/30/12 Materials Pending Producer Licensing (EX) Working Group REVISED 11/26/12 Agenda REVISED 11/29/12 Materials Summary Speed to Market (EX) Task Force Meeting Cancelled Meeting Cancelled Meeting Cancelled Internal Administration (EX1) Subcommittee Agenda Materials Pending Information Systems (EX1) Task Force Agenda Materials Summary Life Insurance and Annuities (A) Committee REVISED 11/30/12 Agenda REVISED 11/30/12 Materials Summary Annuity Disclosure (A) Working Group Agenda REVISED 11/28/12 Materials Summary Contingent Deferred Annuity (A) Working Group REVISED 11/29/12 Agenda REVISED 11/29/12 Materials Summary ERISA Retirement Income (A) Working Group Agenda Materials Summary Life Actuarial (A) Task Force Agenda REVISED 11/26/12 Materials REVISED 12/3/12 Summary Viatical Settlements (A) Working Group REVISED 11/27/12 Agenda Materials Summary Health Insurance and Managed Care (B) Committee REVISED 11/30/12 Agenda Materials Summary Exchanges (B) Subgroup Agenda Pending Summary Health Actuarial (B) Task Force Agenda Materials Summary Long-Term Care Actuarial (B) Working Group Agenda Pending Summary Health Care Reform Regulatory Alternatives (B) Working Group REVISED 11/30/12 Agenda Materials Pending Regulatory Framework (B) Task Force REVISED 11/29/12 Agenda REVISED 11/29/12 Materials Summary Individual Market Health Insurance Coverage Model Act (as adopted by the Regulatory Framework (B) Task Force, Nov. 29, 2012) Small Group Market Health Insurance Coverage Model Act (as adopted by the Regulatory Framework (B) Task Force, Nov. 29, 2012) ERISA (B) Working Group REVISED 11/28/12 Agenda REVISED 11/28/12 Materials Summary Senior Issues (B) Task Force Agenda Materials Summary Public Hearing on Long-Term Care Insurance  REVISED 11/25/12 Notice of Public Hearing Hearing Agenda Summary Property and Casualty Insurance (C) Committee REVISED 12/1/12 Agenda Materials Summary Public Hearing on Catastrophe Issues Notice of Public Hearing REVISED 11/29/12 Comments, Testimony and Presentations Advisory Organization Examination Oversight (C) Working Group Agenda Materials Summary Joint Auto Insurance (C/D) Study Group Agenda Materials Summary Catastrophe Insurance (C) Working Group Agenda Pending Summary Casualty Actuarial and Statistical (C) Task Force Agenda Materials Summary Risk-Focused Surveillance (C) Subgroup Agenda Materials Pending Crop Insurance (C) Working Group Agenda Pending Summary Risk Retention (C) Working Group Agenda REVISED 11/29/12 Materials Summary Surplus Lines (C) Task Force Agenda Materials Pending Title Insurance (C) Task Force Agenda Materials Summary Title Insurance Market Conduct and Mortgage Fraud (C) Working Group Agenda Pending Summary Transparency and Readability of Consumer Information (C) Working Group Agenda Materials Summary Workers’ Compensation (C) Task Force Agenda Materials Pending Market Regulation and Consumer Affairs (D) Committee REVISED 11/30/12 Agenda REVISED 11/30/12 Materials Additional Materials Summary Antifraud (D) Task Force REVISED 11/26/12 Agenda Materials Summary Joint Auto Insurance (C/D) Study Group Agenda Materials Pending Market Actions (D) Working Group Agenda Materials REVISED 12/1/12 Summary Market Information Systems (D) Task Force Agenda Materials Summary Market Analysis Procedures (D) Working Group Agenda Materials Summary Financial Condition (E) Committee REVISED 12/1/12 Agenda REVISED 12/1/12 Materials Summary Accounting Practices and Procedures (E) Task Force Agenda Materials (Attachments B-E will be distributed on meeting date.) Summary Blanks (E) Working Group Agenda Materials Summary Emerging Accounting Issues (E) Working Group Agenda Materials Summary Statutory Accounting Principles (E) Working Group Hearing Agenda REVISED Materials Summary Statutory Accounting Principles (E) Working Group Agenda REVISED 11/29/12 Materials Additional Handouts Summary Capital Adequacy (E) Task Force REVISED 11/30/21 Agenda Materials 12/1/12 Additional Materials Pending Catastrophe Risk (E) Subgroup REVISED 11/27/12 Agenda REVISED 11/27/12 Materials Summary Joint C-1 Factor Review (E) Subgroup Agenda Materials Summary Life Risk-Based Capital (E) Working Group REVISED 11/28/12 Agenda REVISED 11/28/12 Materials Summary Solvency Modernization Initiative RBC (E) Subgroup REVISED 11/27/12 Agenda Materials Summary Captive and Special Purpose Vehicle Use (E) Subgroup REVISED 11/26/12 Agenda REVISED 11/26/12 Materials Summary Emerging Actuarial Issues (E) Working Group Agenda REVISED 11/26/12 Materials Summary Examination Oversight (E) Task Force Agenda Materials Summary Climate Change and Global Warming (E) Working Group Agenda Materials Summary Financial Examiners Coordination (E) Working Group Agenda Materials Pending Financial Analysis (E) Working Group Agenda Materials Summary Receivership and Insolvency (E) Task Force Agenda Pending Summary Receivership Financial Analysis (E) Working Group Agenda Materials Pending Reinsurance (E) Task Force REVISED 11/30/12 Agenda REVISED 11/30/12 Materials Summary Risk Retention Group (E) Task Force Agenda Materials Summary Solvency Modernization Initiative (E) Task Force Agenda Materials Summary Corporate Governance (E) Working Group Agenda Materials Summary Group Solvency Issues (E) Working Group Agenda Materials Summary International Solvency and Accounting Standards (E) Working Group Agenda Materials Summary Principles-Based Reserving (E) Working Group Agenda Materials Summary Valuation of Securities (E) Task Force REVISED Agenda REVISED Materials Summary Joint C-1 Factor Review (E) Subgroup Agenda Materials Pending Financial Regulation Standards and Accreditation (F) Committee Agenda Materials Summary International Insurance Relations (G) Committee REVISED 11/29/12 Agenda Pending REVISED 12/1/12 Summary International Regulatory Cooperation (G) Working Group Agenda Pending Summary NAIC/Consumer Liaison Committee REVISED 11/21/12 Agenda REVISED 11/21/12 Materials Summary NAIC/Industry Liaison Committee Meeting Cancelled Meeting Cancelled Meeting Cancelled NAIC/State Government Liaison Committee REVISED Agenda Pending Summary State Legislator Orientation       Agenda SERFF Board REVISED 11/27/12 Agenda REVISED 11/27/12 Materials Pending Health Insurance Exchange Plan Management Forum VI Pending Materials Available After Forum Not Applicable Interstate Insurance Product Regulation Commission (IIPRC) See IIPRC Events Calendar for Agenda and Materials Pending