Internal Administration (EX1) Subcommittee
Executive
(EX) Committee Task Forces and Working Groups Summary Report
Winter 2009 Meeting Summaries Index
The
Executive (EX) Committee and Internal Administration (EX1)
Subcommittee met in joint session December 5, 2009. The
meeting was held in regulator-to-regulator session in accordance
with the exceptions contained in the NAIC’s open
meeting policy (i.e., internal or administrative matters
of the NAIC, as well as consultations with NAIC staff members).
During the joint meeting,
the Committee and Subcommittee:
- Adopted the minutes
of the Subcommittee’s Sept. 21 and Nov. 4 meetings.
The Nov. 4 minutes reflected the Subcommittee’s
public hearing regarding the NAIC’s 2010 budget
proposal and subsequent adoption of the proposal, with
a recommendation the 2010 budget be adopted by the full
membership at the Joint Executive (EX) Committee/Plenary
session on Dec. 7.
- Adopted the report of
the Audit Committee, which included:
- A report on the
financial results through Oct. 31, 2009.
- An update on 2009
financial projections and the results of cost control
measures implemented by NAIC management.
- Strong investment
performance versus benchmarks through Oct. 31, 2009.
- An update on database
fee collections.
- An update on NAIC
grant fund usage.
The
Audit Committee also met with a representative from Mayer
Hoffman McCann, the NAIC’s independent accountant,
regarding the scope and plan for the 2009 audit.
- Adopted the report of
the Information Systems Task Force, which included its
review of member-approved information technology projects.
- Approved the NAIC’s
2010 program budget, which will be published as part
of the 2010 budget proposal to be considered for adoption
at the Joint Executive (EX) Committee/Plenary session
on Dec. 7. A copy of the NAIC 2010 budget, including
the program budget, will be available from the NAIC Web
site by Dec. 8.
- Held a discussion regarding
health reform legislation and agreed with the need to
(1) preserve state review of health insurance rates and
(2) collect industry data for enhanced evaluation of
market conduct and trends.
- Consulted with NAIC
staff regarding the NAIC’s market regulation accreditation
initiative and possibility of getting more Commissioners
involved in the discussion. There was agreement regarding
the creation of a new Market Regulation Accreditation
(EX) Task Force reporting to the Executive (EX) Committee.
This Task Force, with Commissioner participation, would
continue to evaluate the work and proposals considered
by the Market Regulation Accreditation (D) Working Group
in 2009.
- Consulted with NAIC
staff regarding efforts to raise the level of priority
assigned to multi-state enforcement actions and the work
of the Market Analysis (D) Working Group. Charges for
a Multi-State Enforcement (EX) Task Force will be prepared
for consideration by the Executive (EX) Committee and
creation as part of the 2010 committee assignment process.
- Received a report of
the Emergency Procedures (EX) Subgroup, which was charged
to consider any necessary changes to NAIC processes to
accommodate and handle emergency items. In short, the
Subgroup proposed no changes to NAIC bylaws, believing
the existing bylaws provide the Executive (EX) Committee
with necessary discretion in managing the affairs of
the NAIC and in handling future emergency items.
- Received an update on
the NAIC’s modeling and assessment process for
non-agency residential mortgage-backed securities (RMBS).
Following a number of open meetings and conference calls
of the Valuation of Securities (E) Task Force and NAIC
membership, the assumptions to be used in the modeling
process were adopted on Dec. 2. The Committee and Subcommittee
also discussed the $4.6 million assessment of the RMBS
project’s estimated cost to those insurers investing
in RMBS. Correspondence and assessment invoices have
been distributed to the 1,621 companies investing in
RMBS, and details of the assessment were distributed
to all NAIC members and chief financial regulators this
week.
Having
further agenda items, the joint meeting of the Executive
(EX) Committee and Internal Administration (EX1) Subcommittee
will continue on Monday, Dec. 7 at 7:30 a.m. in regulator
to regulator session. |
