National Association of Insurance Commissioners (NAIC) 2012 Fall National Meeting Summaries, Meeting Materials
Dec 3, 2012
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:
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.