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

The Risk Retention Group (E) Task Force met Sept. 21, 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.

• Voted to adopt the minutes from its Sept. 3 conference call. During this call, the Task Force voted to adopt its Part B and Part C summary memos and present them to the Financial Condition (E) Committee for consideration and subsequent referral to the Financial Regulation Standards and Accreditation (F) Committee. These summary memos highlight each of the significant elements within the accreditation standards and document the Task Force’s consensus on the applicability of these items to captive RRGs. During this call, the Task Force also discussed recent changes made to some of the Part A standards since the Task Force had begun its deliberations of these standards. As part of these discussions, the Task Force concluded that the new Property and Casualty Actuarial Opinion Model Law (#745) and the 2001 revisions to the Annual Financial Reporting Model Regulation (#205) should be applicable to captive RRGs.

• Discussed the 2006 revisions made to model #205 relating to auditor independence, corporate governance and internal control over financial reporting. The Task Force noted that some of the audit committee requirements may conflict with corporate governance standards previously adopted by the Property and Casualty Insurance (C) Committee. After reviewing each of the audit committee requirements in model #205, the Task Force agreed that further time was needed to consider possible conflicts, and that the issue would be discussed further on a conference call.