Receivership and Insolvency (E) Task Force
September 13, 2007

The Receivership and Insolvency (E) Task Force met by conference call on Thursday, September 13, 2007.

During this meeting, the Receivership and Insolvency (E) Task Force:

• Received a report from the Receivership Technology and Administration Working Group , which recommended a Data Privacy and Security Policy and Procedures to the Task Force for consideration and adoption. The Working Group has also recommended Uniform Data Standards B Record and D Record to the Task Force for consideration and adoption. The Working Group will present a ClaimNet implementation training program, which will be held in Tallahassee, Florida on October 11-12, 2007, with 12 states participating in this program. The Global Receivership Information Database (GRID) Subgroup is working with states to enter data into GRID and to provide further instruction on using GRID, with Phase I of the project ready for a January release.

• Received a report from the Receivership Model Act Revision Working Group. Upon approval by the NAIC Executive Committee under the Model Law guidelines, the Working Group will return to work on revisions to the Life and Health Insurance Guaranty Association Model Act.

• Received a report from the Receivership Law And Intergovernmental Working Group, which received a report on the receivership and guaranty fund provisions of the optional federal charter legislation from NAIC staff. The Working Group had discussed the 2007 sunset of the 501(c)(15) federal income tax exemption for receiverships, and also discussed the 2004 Resolution of the NAIC Supporting the Amendment of 31 U.S.C. Section 3713 in regard to Insurance Company Receiverships.

• Received a report from the Receiver’s Handbook Working Group on the continuing work on the revisions to the Receivers’ Handbook. The Working Group reported that it should have a completely revised Receiver’s Handbook to submit to the Task Force by the Spring National Meeting in 2008.

• Received a report from the Judicial Training Working Group, which has been holding a series of conference calls to develop a judicial training program for receiverships. The Working Group reported that it had submitted a budget to NAIC staff for conditional funding of the project.

• Received proposed 2008 Charges to the Task Force, which were unanimously approved by the Task Force in an e-mail vote on September 28, 2007. The Proposed 2008 Charges include new charges to (1) c onsider the appropriate treatment of structured settlements in the insolvency context; and (2) u ndertake a study of solvent schemes of arrangement (solvent run-offs), Part VII portfolio transfers and any other similar restructuring mechanisms.

Action Items:

• Adopted proposed charges for 2008.

• Exposed for a 60-day comment period the Data Privacy and Security Policy and Procedures, which the Task Force will consider for approval at the Winter National Meeting.

• Exposed for a 60-day comment period the Uniform Data Standards B Record and D Record, which the Task Force will consider for approval at the Winter National Meeting.

• The Task Force will consider for approval the proposed changes to the Property and Casualty Insurance Guaranty Association Model Act upon the approval of the Executive Committee that it meets the Model Law guidelines.