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FOR IMMEDIATE RELEASE
NAIC BEGINS 2013 BUDGET
APPROVAL PROCESS
WASHINGTON, D.C. (Oct. 24, 2012) — The National
Association of Insurance Commissioners' (NAIC) proposed 2013 budget is now
in the approval process, following months of development by NAIC
leadership, the Internal Administration Subcommittee, Executive Committee
and executive staff.
“We believe this proposed budget reflects our inherent strength and
transparency as an organization,” said Jim Donelon, NAIC President-Elect
and Louisiana Insurance Commissioner. “The 2013 proposal supports important
initiatives that will allow regulators to better protect insurance
consumers and ensure a solvent industry. The allocation of NAIC financial
resources continues to be guided by our astute investment in these
principles to support the state-based system of regulation.”
The NAIC 2013 proposed budget before fiscals and the modeling of structured
securities includes total revenues of $80.8 million and total expenses of
$78.1 million, which represent a 2.00% and .33% increase, respectively,
from the 2012 budget.
There are seven Business and Fiscal Impact Statements (fiscals) proposed in
2013:
1. Health Insurance Exchange Plan Management Data Collection and
Communication through SERFF. This is Phase II of a multi-year project to
assist states in the establishment of health insurance exchanges,
specifically in the area of plan management.
2. State Based Systems (SBS) Software Enhancement and Technology
Compliance Initiative. This is Phase I of a project to begin the migration
of SBS services by updating the SBS architecture and tool set.
3. Financial Staff Exchange Program. This initiative will allow experienced
regulators from one state to work with financial regulators from another
state for a limited period of time to enhance the solvency expertise of the
receiving state.
4. Actuarial Guidelines XXXVIII (AG 38)/Principle-Based Reserving (PBR)
Implementation and Monitoring. This fiscal impact statement supports the
implementation and monitoring of activities required by both AG 38 and PBR
initiatives.
5. OPTins Clearinghouse. This project includes the development and
implementation of functionality within OPTins to allow
Non-admitted Insurance Multi-State Agreement (NIMA) states to have a choice
in clearinghouse software.
6. Natural Catastrophe Stress Test. This initiative would conduct a financial
stress test involving a natural catastrophic event to determine the
financial impact on an insurer and its reinsurers as well as on the
insurance sector as a whole.
7. In-House Structured Securities Group. This proposal establishes
an in-house structured securities group to support the current modeling of
structured securities and would allow the NAIC to expand its analysis to
more complex structured securities products.
Click HERE to view the NAIC's proposed 2013 budget.
A public hearing is tentatively scheduled for November 20, 2012 at
3:00 p.m. Eastern/2:00 p.m. Central/1:00 p.m. Mountain/12:00 p.m.
Pacific/10:00 a.m. Hawaii time. If you have any written comments,
please provide those to Jim Woody at jwoody@naic.org
by Nov. 9, 2012.
Click HERE to view a summary of the comments on the 2013 proposed budget.
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