National Association of Insurance Commissioners (NAIC) Spring 2011 National Meeting Preview: March 26-29
Feb 18, 2011
The National Association of Insurance Commissioners (“NAIC”) will hold its Spring 2011 National Meeting from March 26 through March 29 in Austin, Texas.
Highlights of the NAIC’s official meeting preview are listed below. To access the complete preview, click here.
Public Hearing on RMS Catastrophe Model
During the meeting, the NAIC’s Catastrophe Insurance Working Group will hold a public hearing to discuss Risk Management Solutions’ catastrophe simulation model and receive comments from regulators and interested parties about its use.
Group Solvency Issues Working Group
The Group Solvency Issues Working Group will review its updates of a draft work product on Insurance Holding Company Best Practices, as well as review updates to the draft proposal for Substantially Similar Provisions of the Revised Insurance Holding Company System Model Act (#440) and Regulation (#450) for Accreditation. It also will begin drafting a work product on the group-wide capital proposal via the Own Risk and Solvency Assessment (“ORSA”).
International Solvency Working Group
The International Solvency Working Group will present a proposal for the Internal Risk Management Assessment, which is known internationally as ORSA.
Property and Casualty Insurance Committee
Property and Casualty Insurance Committee members will listen to a presentation on cyber security that focuses on Voice-Over Internet Protocol (IP) security–an area known to be significantly vulnerable to hackers, identity theft and, resultantly, insurance coverage in each of these areas. The Committee will consider the completed Risk Classification Survey Instrument for adoption, as well as be updated on the drafting of a model law relating to a regulatory framework for credit scoring information vendors. A progress report also will be given on the CIAB/Lexis Nexis Insurance Exchange and the National Flood Insurance Program reauthorization efforts, which include the possibility of privatizing the delivery of flood insurance.
Risk Retention Working Group
The Risk Retention Working Group will report on progress made toward adding corporate governance standards to the Model Risk Retention Act (#705) and updating the Risk Retention and Purchasing Group Handbook.
Title Insurance Task Force
The Title Insurance Task Force plans to formally constitute three working groups:
- Annual Statement Instructions Working Group
- Title Statistical Plan Working Group
- Title Insurance Market Conduct and Mortgage Fraud Working Group.
The Task Force will consider whether or not the NAIC should take a position related to private transfer fee covenants. It also will hear an update from the National Conference of Commissioners on Uniform State Laws regarding their consideration of a model law on mortgage subrogation.
The Title Statistical Plan Working Group will report on its progress in developing a Title Agent Statistical Data Plan Implementation Guideline, which is designed to assist states in implementing the Title Insurance Agent Statistical Report. The data call report and guideline will assist members in the collection of various data elements that could be useful in market analysis and market regulation, thereby assisting state insurance regulators in analyzing the insurance marketplace.
The newly formed Title Insurance Market Conduct and Mortgage Fraud Working Group will report on its activities related to reviewing and assisting various regulatory bodies in combating fraudulent or unfair real estate settlement activities.
Workers’ Compensation Task Force
The Workers’ Compensation Task Force will be updated on proposed federal legislation to establish a National Commission on State Workers’ Compensation, the draft National Conference of Insurance Legislators’ Transportation Issues Model Act and concerns with workers’ compensation enforcement related to out-of-state employers and the status of Third-Party Administrator Guidelines.
Market Analysis Procedures Working Group
Part of the Market Regulation and Consumer Affairs Committee, the Market Analysis Procedures Working Group will discuss possible future changes to the Market Conduct Annual Statement data elements and definitions.
Examination Oversight Task Force
Among other agenda items, the Examination Oversight Task Force will review states’ adoption of the recently revised Hazardous Financial Condition Model Regulation (#385).
Reinsurance Task Force
The Reinsurance Task Force will continue discussions with respect to reinsurance regulatory modernization, including proposed amendments to the Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786) in an effort to make them consistent with key elements of the Reinsurance Regulatory Modernization Framework.
Valuation of Securities Task Force
The Valuation of Securities Task Force will continue to review the changes to how certain securities are analyzed and filed, including the Residential Mortgage-Backed Securities and Commercial Mortgage-Backed Securities that will be modeled for year-end 2011, as well as other loan-backed and structured securities, for which the determination of the NAIC designation has changed. The Task Force will discuss changes to the Securities Valuation Office (“SVO”) Purposes and Procedures Manual, including Federal Deposit Insurance Corporation-guaranteed securities. The Task Force will also consider proposals to Recalibrate NAIC Designations and Discontinue the Classification of Securities by the SVO.
Financial Regulation Standards and Accreditation Committee
The Financial Regulation Standards and Accreditation Committee will consider adoption of the 2008 revisions to the Model Regulation to Define Standards and Commissioner’s Authority for Companies Deemed to be in Hazardous Financial Condition (#385) as an addition to the NAIC’s Accreditation Standards. The Committee also will discuss revisions adopted in 2010 to NAIC publications that are referenced in the Accreditation Standards, such as the Accounting Practices and Procedures Manual and the Financial Condition Examiners Handbook. Other 2010 model revisions to be discussed include those made to the Insurance Holding Company System Regulatory Act (#440) and the Insurance Holding Company System Model Regulation (#450).
NAIC/Consumer Liaison Committee
The NAIC/Consumer Liaison Committee will discuss homeowners insurance as it relates to the areas of insurance policy transparency, underinsurance and consumer complaint ratios, the fraud bill partnership relating to automobile Personal Injury Protection coverage, consumer orientation plans for co-ops, agents’ selling individual insurance plans and proposed rulemaking for rate review programs, among other items.
Should you have any questions or comments, please contact Colodny Fass.