NAIC Committee F Action on Multistate Insurer Definition

The National Association of Insurance Commissioners (NAIC) Financial Regulation Standards Accreditation Committee F voted on Tuesday to approve the revised draft of the Part A Accreditation Preamble with the addition of several technical amendments.

The Scope of Part A Standards includes the following note: "This section does not apply to insurers organized under a state’s captive statutes.” One of the technical corrections that will be added to the revised draft is to also add the note to the Captive Reinsurers section of the proposal. Jim McIntyre, who represented the Vermont Captive Insurance Association on the conference call, suggested this technical change as clarifying language.

As approved, the revised Preamble to Part A pertains only to insurers ceding to captives, special purpose vehicles, and other entities the following lines of reinsurance business: (1) XXX/AXXX policies (now defined under Actuarial Guideline XLVIII (AG 48) to apply to those policies that are required to be valued under Sections 6 or 7 of the NAIC Valuation of Life Insurance Policies Model Regulation (Model #830)); (2) variable annuities valued under Actuarial Guideline XLIII—CARVM for Variable Annuities (AG 43); and (3) long-term care insurance valued under the NAIC Health Insurance Reserves Model Regulation (Model #10).

The F Committee deferred until the NAIC summer meeting all discussions relative to the effective date of the Part A revisions and possible grandfathering provisions.

Julie Gurber, NAIC senior accreditation manager, will be preparing a redraft with the agreed technical changes. That redraft will be available in the near future at the NAIC website. Captive.com will also publish or link to a copy when it is available.

Steve Kinon, Delaware Insurance Department director, Bureau of Captive and Financial Insurance, addressed the F Committee citing the reasons for Delaware’s opposition to the adoption of the revised Part A Preamble. The reasons for Delaware’s opposition are outlined in the F Committee documents. Delaware’s recommendations engendered no F Committee discussion.