Receivership and Insolvency (E) Task Force
November 28, 2007

The Receivership and Insolvency (E) Task Force met via conference call on Wednesday, November 28, 2007. During this meeting, the Receivership and Insolvency (E) Task Force: 

• Received a report from the Receivership Technology and Administration Working Group, which summarized a report from the Receivership Internet Use Subgroup, who held a ClaimNet Implementation Training Program in Tallahassee, Florida on October 11-12, 2007, with participation from 8 states. The subgroup is considering additional implementation training during 2008. The Subgroup also noted that Florida successfully utilized ClaimNet for the first time on a small estate. As a result, approximately 49% of those claimants filing a claim filed it over the Internet utilizing ClaimNet. The Working Group also summarized a report from the Global Receivership Information Database (GRID) Subgroup, who continues to work with states to enter receivership data into GRID in order to be prepared for the late January release to the public. Over 20 states have entered 95% or more of their respective data and 13 states have entered at least 75% of their data.

• Received a report from the Receivership Model Act Revision Working Group, who continues to work on revisions to the Life and Health Insurance Guaranty Association Model Act. A survey will be distributed during December 2007 to gauge the Working Group’s preference with issues remaining. Once the survey is collected and assessed, the Working Group will reconstitute subgroups to meet with interested parties in order to draft language to address these remaining issues.

• Received a report from the Receiver’s Handbook Working Group on the continuing work on the revisions to the Receivers’ Handbook. To date, the Working Group has revised chapters 2 through 8 and chapter 10. The Working Group reported that it should have a revised Receiver’s Handbook to submit to the Task Force for exposure by the 2008 Spring National Meeting.  

• Received a report from the Judicial Training Working Group, which reported that it had submitted a budget request for conditional funding of the project for 2008 that was denied. Although, the Task Force charges permit the Working Group to continue to provide technical assistance for the Project, a motion was unanimously adopted to discontinue the Working Group until an alternative source of funding is identified.

• Discussed interested party comments received on the Receivership Data Privacy and Security Policy (Policy) and the Information and Security Procedures (Procedures) that had been exposed for 60 days. The documents were developed by the Receivership Technology and Administration Working Group and interested parties to serve as a guideline for receivers and guaranty associations. The Task Force adopted the Policy with friendly amendments. Based on regulator and interested party suggestions, the Task Force will consider alternative options and friendly amendments with regards to the exposed Procedures.

• Discussed the revisions to the Receivership Uniform Data Standards (UDS) that had been exposed for 60 days. The UDS, which were initially adopted by the NAIC in 1995, are to serve as guidelines for the reporting of policy and claim information between guaranty funds and receivers. The Task Force unanimously adopted the revisions to the UDS B Record and D Record. The B Record provides file formats for the receivers to transmit unearned/return premium claims data to the guaranty funds. The D Record provides file formats for the guaranty funds to transmit financial reports, including all claims and administrative expenses on a quarterly basis to the receivers.

• Heard the Chair’s approach to accomplish new charges during 2008, including the Post-Assessment Property and Liability Insurance Guaranty Association Model Act and the appropriate treatment of structured settlements in the insolvency context.  

Action Items:

• Adopted the Receivership Data Privacy and Security Policy that was developed to serve as a guideline for receivers and guaranty associations.Adopted the revisions to the Uniform Data Standards B Record and D Record.