Risk Retention Group (E) Task Force
Risk Retention Group (E) Task Force Page
Joint Executive (EX) / Plenary Committee Summary Report
Summer 2009 Meeting Summaries Index

The Risk Retention Group (E) Task Force met June 13, 2009.

• During this meeting, the Task Force:
  
  Received an update from Julie Glaszczak (NAIC) regarding the ongoing work of other NAIC bodies on risk retention groups (RRGs) licensed as captive insurers. This update primarily included information on items being considered by two Financial Condition (E) Committee working groups.
• Voted to adopt the minutes from its conference call on April 17, as well as the minutes from the Subgroup on Calling Examinations' conference calls on April 15 and May 12.
• Received a report from the Subgroup on Calling Examinations addressing the third guideline under the Scheduling of Examinations standard regarding association examinations and utilization of the NAIC Examination Tracking System (ETS). The Subgroup concluded that: 1) under the federal Liability Risk Retention Act of 1986, an RRG examination does not qualify as an association examination, because domiciliary regulators are not required to allow non-domiciliary states to participate on an RRG examination; and 2) notification of an RRG exam via ETS should be considered notification of an upcoming examination and not an invitation to participate in the upcoming RRG exam. The Task Force voted to refer the Subgroup's recommended revisions to the Financial Condition Examiners Handbook and the e-mail generated by ETS to the Financial Examiners Handbook (E) Technical Group. The Task Force also concluded that, after incorporating a minor revision suggested by NAIC staff, the third guideline under the Scheduling of Examinations standard should be applicable to RRGs with the supplemental information noted above.
• Discussed the results of a survey of the Task Force members regarding their ability to share and receive confidential information related to RRGs with regulatory officials of other states, federal agencies, foreign countries and the NAIC in accordance with the requirements in the Part B: Information Sharing standard. Based on this discussion, the Task Force concluded that the first three guidelines under the Information Sharing standard should be applicable to captive RRGs.
• The Task Force voted to publicly release its Part B summary memo for a 30-day comment period and will discuss any comments received during an interim conference call.
• Discussed the Part C: Organizational and Personnel Practices Standards and concluded that all three standards should be applicable to captive RRGs. The Task Force also voted to include consideration of these standards in the upcoming comment period with the Part B summary memo.

Action Items:

1. Voted to adopt the minutes from its conference call on April 17, as well as the minutes of the Subgroup on Calling Examinations' conference calls on April 15 and May 12
2. Voted to refer revisions to the Examiners Handbook and the e-mail generated by ETS to the Financial Examiners Handbook (E) Technical Group.
3. Concluded that the third guideline under the Scheduling of Examinations standard and the first three guidelines under the Information Sharing standard are applicable to RRGs.
4. Voted to publicly release the Part B summary memo and the Part C: Organizational and Personnel Practices Standards for a 30-day comment period.