FOR IMMEDIATE RELEASE
NAIC Committee Adopts Proposed Revisions Related to Captives, Financial Summit Underway
WASHINGTON, D.C. (May 28, 2015) —The Financial Regulation Standards and Accreditation (F) Committee of the National Association of Insurance Commissioners (NAIC) unanimously adopted proposed revisions to the Part A: Laws and Regulations Accreditation Preamble Tuesday on a conference call.
The proposed revisions would add certain captive insurers and special purpose vehicles (SPVs) into the accreditation program. Specifically, the revisions would include regulation of those captives and SPVs that assume XXX or AXXX business, variable annuities and long-term care business. Currently, regulation of these types of companies is not included in the program's scope.
"This is a critical step forward in the NAIC's work related to the transparency of information and consistency of treatment for these types of captive insurers," said NAIC President-Elect and Missouri Insurance Director John M. Huff, who also serves as the Chair of the F Committee. "I look forward to continuing our work to strengthen the accreditation program."
The F Committee plans to consider specific grandfathering provisions for transactions already in place as well as the effective date of the proposed revisions at the NAIC's 2015 Summer National Meeting. If the grandfathering provisions and effective dates are adopted, they will then be presented to the NAIC Executive (EX) Committee and Plenary for consideration.
This occurs as more than 500 state regulators, consumer advocates and industry professionals meet in Kansas City, Mo. for the NAIC's 2015 Financial Summit this week. Adam Hamm, NAIC Immediate Past President and North Dakota Insurance Commissioner, hosted the opening session, which addressed cybersecurity in the insurance industry. The annual summit began May 27 and runs through May 29.
The agenda and other materials for the summit can be viewed here.