Financial Condition (E) Committee
March 31, 2008

The Financial Condition Committee met in Orlando, FL, and took the following actions:

• Adopted the Report of the Accounting Practices and Procedures Task Force; including blanks proposal 2007-42BWG which adds instructions for the allocation of life and annuity premiums to Schedule T. The proposal adopts current industry practice, which allows allocation of group insurance premiums where the group is less than 500 members to one state based on either the situs of the contract, or the residence or employment location of the greatest number of covered members. Premium for groups where there are more than 500 members is allocated based on the residence or employment location of each member. Premium for individual policies is allocated based on the residence of the policyowner, insured, or payer.

• Adopted the Report of the Capital Adequacy Task Force;

• Adopted the Report of the Examination Oversight Task Force;

• Received the Report of the Receivership and Insolvency Task Force;

• Received the Report of the Reinsurance Task Force;

• Adopted the Report of the Risk Retention Group Task Force;

• Adopted the Report of the Valuation of Securities Task Force;

• Received the Report of the Financial Analysis Working Group;

• Adopted the Report of the Hybrid RBC Working Group;

• Received the Report of the International Solvency and Accounting Working Group;

• Adopted the Report of the NAIC/AICPA Working Group;

• Adopted the Report of the National Treatment and Coordination Working Group;

• Adopted the Report of the Risk Assessment Working Group;

• Received the Report of the Restructuring Mechanisms for Troubled Companies Subgroup;

• Deferred consideration of the Appendix A Request for Model Law Development for Derivative Instruments Model #282 to a future conference call;

• Released for comment the revisions to the Property and Casualty Insurance Guaranty Association Model Act (Model #540)

• Received a new charge from the Executive Committee related to the regulation of financial guaranty insurance.