On Saturday morning at the 2013 Summer Meeting of the National Association of Insurance Commissioners (NAIC) in Indianapolis, IN, the Risk Retention Group (E) Task Force adopted the following motions:
- The Form F (Enterprise Risk Report) filing requirements, once effective, apply to any risk retention group (RRG) that is a member of a holding company system.
- If information concerning RRGs is to be shared between states, the recipient must have confidentiality protections in place that are substantially similar to those in the 2010 revisions to NAIC Insurance Holding Company System Regulatory Act (#440).
- Due to changes in the Insurance Holding Company System Regulatory Act (#440) and Insurance Holding Company System Model Regulation (#450) giving insurance commissioners the authority to examine affiliates of registered insurers even regardless of the jurisdiction where the affiliates are located, a note will be added that the examination of a RRG should be coordinated with its domiciliary regulator in to avoid unjustified duplication or repetition, and such examinations should comply with other provisions of the Liability Risk Retention Act.
The effective date for these adopted motions has not yet been set.
Among other things, the Task Force began discussions whether the provisions of the Model Regulation to Define Standards and Commissioner’s Authority for Companies deemed to be in Hazardous Financial Condition should be adopted as applicable to RRGs, to add clarification to the meaning of “hazardous financial condition” in the Liability Risk Retention Act. However, the discussion was tabled until the next Task Force conference call.