On May 26, just before the start of the 2015 Financial Summit, the Financial Regulation Standards and Accreditation Committee of the National Association of Insurance Commissioners (NAIC) unanimously adopted proposed revisions to the Part A: Laws and Regulations Accreditation Preamble.
Under the proposed revisions, certain captive insurers and special purpose vehicles (SPVs) would be added into the accreditation program. According to the committee, the revisions would include regulation of those captives and SPVs that assume XXX or AXXX business, variable annuities and long-term care business. Currently, the program does not regulate these types of companies.
"This is a critical step forward in the NAIC's work related to the transparency of information and consistency of treatment for these types of captive insurers," said NAIC President-Elect and Missouri Insurance Director John M. Huff, who also serves as the Chair of the committee. "I look forward to continuing our work to strengthen the accreditation program."
At the NAIC's 2015 Summer National Meeting, scheduled for August 15–18, 2015, in Chicago, the committee plans to consider specific grandfathering provisions for transactions already in place as well as the effective date of the proposed revisions. If the grandfathering provisions and effective dates are adopted, they will then be presented to the NAIC Executive Committee and Plenary for consideration.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
