Property and Casualty Insurance (C) Committee
The following task forces and working groups report to the Property and Casualty Insurance (C) Committee:
2012 Charges
The mission of the Property and Casualty Insurance (C) Committee is to monitor and respond to problems
associated with the products, delivery and cost in the property/casualty insurance market and the surplus
lines market as they operate with respect to individual persons and businesses. The Committee also is to
monitor and respond to problems associated with financial reporting matters for property/casualty insurers
that are of interest to regulatory actuaries and analysts and to monitor and respond to problems associated
with the financial aspects of the surplus lines market.
Ongoing Support of NAIC Programs, Products or Services:
- Discuss issues arising and make recommendations with respect to advisory organization and insurer
filings for personal and commercial lines, as needed. Report yearly.—Ongoing
- Appoint a Catastrophe Insurance (C) Working Group to report progress at each national meeting on the following catastrophe insurance issues:
- Monitor and recommend measures to improve the availability and affordability of insurance and
reinsurance related to catastrophe perils for personal and commercial lines.—Ongoing
- Evaluate potential state, regional and national programs to increase capacity for insurance and reinsurance related to catastrophe perils.—Ongoing
- Monitor and assess proposals that address disaster insurance issues at the federal and state levels; assess concentration-of-risk issues and whether a regulatory solution is needed.—Ongoing
- Provide a forum for discussing issues and recommending solutions related to insuring for catastrophe risk, including terrorism, war and natural disasters.—Ongoing
- Update the State Disaster Response Plan, as needed, so that it provides a blueprint for action by the states to respond to catastrophic events.—Ongoing
- Provide a forum for discussing various issues related to catastrophe modeling and monitor issues that will result in changes to the Catastrophe Computer Simulation Modeling Handbook.— Essential
- Appoint a Risk Retention (C) Working Group to:
- Monitor and review developments in case law and rehabilitation proceedings and the findings contained in the forthcoming U.S. Government Accountability Office’s report on risk-retention groups; if warranted, make appropriate changes to the Risk Retention and Purchasing Group Handbook; report at each national meeting.—Ongoing
- Appoint a Crop Insurance (C) Working Group to:
- Monitor the activities of the Federal Crop Insurance Corporation (FCIC) that affect state insurance regulators.—Ongoing
- Serve as a forum for discussing issues related to the interaction of federal crop insurance programs with state insurance regulation.—Ongoing
- Review law changes and court decisions and, if warranted, make appropriate changes to the Crop Insurance Handbook: A Guide for Insurance Regulators.—Ongoing
- Monitor the regulatory information exchanges between the FCIC and state insurance regulators, as well as the FCIC and the NAIC, and make recommendations for improvement or revisions, as needed. Report at each national meeting.—Ongoing
- Monitor and report on the success of states in enacting regulatory changes to avoid preemption of crop insurance adjuster licensing laws by the federal Risk Management Agency (RMA).— Ongoing
- Coordinate with the Federal Insurance Administrator on the regulation of flood insurance to:
- Continue developing a handbook or white paper to assist state insurance regulators in understanding the federal flood insurance program and how it interacts with state insurance regulation.—Important
- Complete work on a handbook or white paper by the 2012 Fall National Meeting. Report progress on the handbook or white paper and any other activities; report at each national meeting.—Important
- Monitor the activities of the Workers’ Compensation (C) Task Force.—Essential
- Monitor the activities of the Casualty Actuarial and Statistical (C) Task Force.—Essential
- Monitor the activities of the Surplus Lines (C) Task Force.—Essential
- Monitor the activities of the Title Insurance (C) Task Force.—Essential
- 10. Appoint an Advisory Organizations Examination Oversight (C) Working Group to:
- Revise the protocols, as necessary, for the examination of national or multi-state advisory organizations (includes rating organizations and statistical agents) to be more comprehensive, efficient and possibly less frequent than the current system of single-state exams. Solicit input
and collaboration from other interested and affected task forces and committees.—Essential
- Monitor data reporting of advisory organizations (includes rating organizations and statistical agents) data-collection processes to determine if advisory organizations (includes rating organizations and statistical agents) implement appropriate measures to ensure data quality. Report the results of this ongoing charge as needed.—Essential
- Actively assist with and coordinate multi-state examinations of advisory organizations (includes rating organizations and statistical agents).—Essential
- Appoint a Terrorism Insurance Implementation (C) Working Group to coordinate the NAIC’s efforts to address insurance coverage for acts of terrorism. Work with the U.S. Department of the Treasury’s Terrorism Risk Insurance Program Office on matters of mutual concern. Discuss longterm solutions to address the risk of loss from acts of terrorism.—Essential
- Appoint an Earthquake (C) Study Group to study, in coordination with other NAIC working groups and task forces, earthquake matters of concern to insurance regulators and report on this at each national meeting.—Essential.
The Earthquake Study Group will see to:
- Increase knowledge and awareness of the earthquake risk nationally and in each state. This includes working with earth scientists, first responders, emergency managers, consumer groups, public and private modelers, and other experts.
- Work with engineers, the Federal Emergency Management Agency and other seismic and actuarial experts to determine effective techniques for retrofitting and mitigating against earthquake risk. This includes identifying which building types are most seismically at risk and exploring methods of collecting post-earthquake loss damage information to improve lossmodeling and mitigation capabilities.
- Identify strategies to communicate earthquake risk awareness, preparation, loss mitigation and recovery measures to insurers, producers and consumers. This includes continued development of an earthquake consumer brochure and working with social scientists to understand the latest research on promoting public preparedness.
- Stay abreast of federal and state legislation impacting the earthquake industry. This includes receiving presentations from speakers on pending federal and/or state legislation involving mitigation initiatives and alternative financing methodologies.
- Review and update The Final Report of the Earthquake Study Group (February 2000), so that it provides a basis for understanding an outline for action to be taken by the states to respond to earthquake events and risks.
- Assist state insurance regulators in determining the availability and affordability of earthquake coverage in their respective states.
- Appoint a Transparency and Readability (C) Working Group to study and evaluate actions that will improve the capacity of consumers to comparison shop on the basis of differences in coverage provided by different insurance carriers offering personal lines products. Review the three NAIC
property/casualty policy simplification models (#730, #731 and #732) for currency and recommend
changes, if appropriate. Examine current industry practices and state laws and regulations relevant to
this topic, then develop findings and/or recommended action items to the Committee. Examine
approaches to 1) systematize and improve pre-sale disclosures of coverage; 2) increase consumer
accessibility to different carriers’ policy forms on a pre-sale basis; and 3) facilitate consumers’ capacity to understand the content of insurance policies and assess differences in insurers’ policy
forms. In examining the second of these issues, the Working Group should consider all possible
avenues of accessibility, including state insurance department websites, the NAIC, insurance
companies and the possibility of pre-sale provision of complete policy language. In examining the
third of these issues, the Working Group should consider a) implementing new readability rules as
suggested by the Consumer Connections (D) Working Group of the Market Regulation and
Consumer Affairs (D) Committee; b) promoting consistent, clear and logical formatting and
organization of all policies; and c) any other measures that would improve the intellectual
accessibility of policy forms.—Important. The Working Group will also develop best practices for the
design and implementation of Web-based consumer premium comparison guides for personal auto
and homeowners insurance by the 2012 Fall National Meeting. —Essential
- Following a catastrophe, diverse regulatory mandates increase insurer uncertainty and might divert insurer resources that are needed to respond to claims. To provide added certainty for insurers and regulators in advance of a major disaster, procedures need to be in place so that regulators and insurers know what to expect and insurers are prepared to comply. To address these concerns, develop a model law, regulation or guideline to standardize insurer premium collection procedures, underwriting limitations, claims-handling processes and claims data reporting requirements that a state could adopt in advance of a catastrophe and activate after a catastrophe.—Important
- Provide an impartial forum for considering appeals of adverse decisions involving alien insurers delisted or rejected for listing to the Quarterly Listing of Alien Insurers. Appeal procedures are described in the IID Plan of Operation.—Important
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 AUDIO FILES: Each audio file is approximately 30 minutes in length unless otherwise noted.
Public Hearing on Proposed Risk Classification Data Call and Other Risk Classification Tools
- September 30, 2010 Property and Casualty Insurance (C) Committee, Kansas City, Missouri
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Public Hearing on Credit Scoring
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Public Fact-Finding Hearing on the Use of Credit-Based Insurance Scores
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Public Hearing Regarding Catastrophe Modeling
- September 28, 2007 Property and Casualty Insurance (C) Committee
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Public Hearing Regarding Coastal Issues
- September 24, 2007 Property and Casualty Insurance (C) Committee
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