FOR IMMEDIATE RELEASE
NAIC TAKES ACTION ON INSURANCE PRIORITIES
Insurance regulators advance key initiatives
WASHINGTON, D.C. (Dec. 16, 2014) - On a call of the Executive Committee/Plenary
today, the National Association of Insurance Commissioners (NAIC) adopted
both the Revised Insurance Holding Company System Regulatory Act and
Actuarial Guideline 48 (AG48), while also approving seven foreign
supervisory authorities as Qualified Jurisdictions.
"The adoption of these components supports our 2014 key initiatives and is
the result of truly outstanding work by America's state insurance
regulators," said Adam Hamm, NAIC President and North Dakota Insurance
Commissioner. "The Revised Insurance Holding Company System Regulatory Act
demonstrates our commitment to international standards, while AG48 furthers
our objectives of transparency and uniformity related to the regulation of
life insurer-owned captives. The seven Qualified Jurisdictions support our
ongoing efforts on reinsurance collateral reform and international
The Revised Insurance Holding Company System Regulatory Act (Model #440)
updates the model to clarify the group-wide supervisor for a defined class
of internationally active insurance groups. It also outlines the process
for determining the lead state for domestic insurance groups, outlines the
activities the commissioner may engage in as group-wide supervisor, and
extends confidentiality protections to cover information received in the
course of group-wide supervision.
In adoption of AG48, the NAIC established national standards regarding
XXX/AXXX captive reinsurance transactions. This guidance includes
regulation of the types of assets held in backing insurer's statutory
reserve. AG48 takes effect in 2015.
The NAIC voted for seven countries to be eligible for reinsurance
collateral reduction as an approved Qualified Jurisdiction. Four of the
seven jurisdictions (Bermuda, Germany, Switzerland and the United Kingdom)
were previously on the NAIC's List as Conditional Qualified. Effective Jan.
1, 2015, these four plus Japan, Ireland and France will be full Qualified
Jurisdictions subject to a 5-year term before re-evaluation.
The NAIC also adopted model regulations for individual and small group
health insurance coverage and Statutory Accounting Principles (SSAP) No.
107 - Accounting for the Risk-Sharing Provisions of the Affordable
About the NAIC
The National Association of Insurance Commissioners (NAIC) is the U.S.
standard-setting and regulatory support organization created and governed
by the chief insurance regulators from the 50 states, the District of
Columbia and five U.S. territories. Through the NAIC, state insurance
regulators establish standards and best practices, conduct peer review, and
coordinate their regulatory oversight. NAIC staff supports these efforts
and represents the collective views of state regulators domestically and
internationally. NAIC members, together with the central resources of the
NAIC, form the national system of state-based insurance regulation in the
U.S. For more information, visit www.naic.org.