Information Systems (H) Task Force
March 29, 2008

The Information Systems (H) Task Force met on Saturday, March 29, 2008.

During this meeting, the Task Force:

• Approved minutes from the previous conference call.

• Received and adopted a report from the Technical Consulting Working Group. The Working Group was asked to evaluate and monitor a plan to eliminate the use of the NAIC’s State Private Network. The plan calls for implementation on a state-by-state basis. Three states have special requests which NAIC Staff are working to resolve. All direct connectivity to NAIC databases will require encryption starting on April 10, 2008, so states have been notified on how to update their systems. Testing is scheduled from March 31 to June 30, 2008. States will be contacted in June to schedule their implementation. Starting July 7, 2008, five states will be migrated each week ending by September 19, 2008. The TCWG is satisfied with the due diligence and the process and therefore concurs with the NAIC approach.

• Received and adopted a report from the Strategic Systems Planning Working Group. Use of My.NAIC.org Common, Financial, and Market roles has continued to increase. The Security Framework implementation is in progress to migrate over 300 NAIC applications to the framework. The Working Group gained some perspective on NAIC President and Kansas Insurance Commissioner Sandy Praeger’s key 2008 focus areas. The group discussed not having been reconstituted for 2008. Since the parent, the Information Systems (H) Task Force, and the SSPWG have many members in common, monitoring responsibilities previously delegated to the working group could be handled there. It was agreed that there would be no request to reconstitute the group; however, should a specific need arise, this could be re-visited.

• Heard a report about the My.NAIC.org project. Since release, 394 distinct state regulators from 53 member states and territories have accessed the site. The Financial role was made generally available March 6, 2008 and since then 66 distinct users from 30 different states have used the Financial role. The Market Regulation role was made generally available to market regulators March 24, 2008. In that limited time 21 regulators from 14 states have used the Market Regulation features.

• The 2007 State Insurance Department Technology Survey Results and Analysis are now available through My.NAIC.org. Findings include that state technology departments are called upon to maintain an assortment of technologies, systems, hardware and software in a cost-effective manner. Web Services continue to gain ground in the states and the NAIC and NIPR are key providers of regulatory data and services. Oracle and Microsoft products are very popular.

• SERFF is celebrating its 10th anniversary and there will be a special presentation at the opening session. Since December 2007, three more states have mandated SERFF filings bringing the total to 11. Company licensing and implementation are growing continuously. Since the December National Meeting, 278 companies went into production with EFT functionality and 90 entities comprising over 150 companies have licensed SERFF. There are now more than 2900 companies with licenses.

SERFF usage has grown. February 2008 recorded 46,497 filing transactions, 76% higher than last year. By February month end, there were 113,000 transactions year-to-date. In software development, SERFF 5.3.2 was released January 2, 2008 and 5.4 March 19, 2008 with 5.5 nearly ready for testing. There is an effort underway to leverage SERFF technology to help states with premium tax collection. The SERFF team continues work with states to see how SERFF could be states’ sole system to review and track rate and form filings.

• Heard an update on the State Producer Licensing Reengineering project, which is completing the last of the Iteration 1 components. A late first quarter release was previously reported; however, due to various issues, it has been moved back to an anticipated second quarter 2008 release. Business analysis and design of Iteration 2, the Gateway release, are underway.

• Heard about the Online Fraud Reporting System (OFRS) Enhancement project. The project includes functionality to allow industry users to manage multiple company codes with a single login id and support for the new security infrastructure. Four states participated and approved the design. Coding began March 18, 2008 and the enhancement is scheduled for a production release August 2008. Also heard that the new Financial Solvency Tool was delivered in Feb. and is now available to regulators via My.NAIC.org.

• Heard about the Market Analysis Review System (MARS) enhancements. These include providing a Level 2 review option, storage of states’ responses, better management of old and new Level 1 analysis, review of more than one line of business in a single review, and linking to other Market Analysis and Market Information Systems. The application is scheduled to go to production in July 2008.

• Heard about the Web Services Registry Enhancements project including security, views, subscription notification, and Integrated PICs functionality.

Action Items:

• There were no action items at the meeting of the working group.