The Spring Meeting of the NAIC saw relatively little progress on reinsurance issues. Several groups received reports on the status of federal financial services reform legislation. The Regulatory Modernization Initiatives Task Force received testimony from four state legislators and two insurance executives. The International Insurance Relations Committee received information and discussed strategic planning initiatives under way at the International Association of Insurance Supervisors (“IAIS”). The Reinsurance Task Force received an update on the pending Congressional legislation and the NAIC’s proposed federal statute, the Reinsurance Regulatory Modernization Act (“RRMA”). The NAIC is no longer seeking a Congressional sponsor for the RRMA for this session of Congress. These activities have been the subject of prior posts to this blog. In addition, the Reinsurance Task Force:
- received a report on reinsurance-related activities of the IAIS;
- agreed to initiate discussions with interested parties with respect to contract certainty considerations;
- received an update on a proposal to amend Schedules F and S of the Annual Statutory Financial Statement to facilitate the collection of information with respect to financial institutions that have issued or confirmed letters of credit for reinsurance collateral purposes;
- passed a motion to submit a recommendation to the Financial Examiners Handbook Technical Group to revise the example letter of credit; and
- passed a motion to direct NAIC staff to initiate a request to the Financial Condition Committee to amend the Credit for Reinsurance Model Law to reduce the trusteed surplus requirement for a multiple-beneficiary trust mainbtained for reinsurance collateral purposes by an assuming insurer in run-off.
This post written by Rollie Goss.