Financial Condition (E) Committee
October 1, 2007

The Financial Condition Committee met in Washington, D.C. and took the following actions:

1. Adopted the Report of the Accounting Practices and Procedures Task Force;

2. Adopted the Report of the Capital Adequacy Task Force;

3. Adopted the Report of the Examination Oversight Task Force;

4. Adopted the Report of the Receivership and Insolvency Task Force, and decided to accomplish the charge to review solvent schemes of arrangement and other similar restructuring mechanisms through a joint Subgroup of Financial Condition Committee members and Receivership and Insolvency Task Force members;

5. Adopted the Report of the Reinsurance Task Force, including the additional exposure time for the current reinsurance regulatory modernization proposal and notice of an interim meeting of the Task Force in conjunction with the NAIC Financial Summit in Atlanta, GA on the afternoon of Nov. 7 and the entire day of Nov. 8;

6. Adopted the Report of the Risk Retention Group Task Force;

7. Adopted the Report of the Valuation of Securities Task Force;

8. Adopted the Report of the Disaster Reporting Working Group, including the intention of the Working Group to finalize the implementation plan and present it along with the framework to the Financial Condition Committee in Dec.;

9. Received the Report of the Financial Analysis Working Group;

10. Adopted the report of the Financial Guaranty Model Law Revision Working Group, including revisions to the model as a guideline;

11. Adopted the Report of the Hybrid RBC Working Group;

12. Adopted the Report of the International Solvency and Accounting Working Group;

13. Received the Report of the NAIC/AICPA Working Group;

14. Adopted the Report of the National Treatment and Coordination Working Group;

15. Adopted the Report of the Risk Assessment Working Group;

16. Adopted an Appendix A request for Model Regulation 385 (“Hazardous Financial Condition”);

17. Asked for comments on an NAIC Reverse Fiscal Impact Study regarding cessation of collection hard copy statements at the NAIC;

18. Exposed the 2008 Committee charges for 2 weeks; and

19. Directed NAIC staff to find out the intent behind the referral on RRG corporate governance standards from the Property and Casualty Committee.