The Illinois Department of Insurance has adopted a new rule, 50 Ill. Adm. Code 630, Corporate Governance Annual Disclosure, effective May 29, 2020. The new rule will require corporate governance reporting for insurers and provides for the confidential treatment of this information. The NAIC’s Corporate Governance Annual Disclosure Model Act (#305) and Corporate Governance Annual Disclosure Model Regulation (#306) will be accreditation standards effective 1/1/2020.
The rule will not impose additional corporate governance rules, standards or procedures on insurance companies, but requires a new annual filing to be submitted to the Department by each insurance company that describes the corporate governance structure, policies and practices in use at the company. Regulatory oversight of insurance companies has changed significantly in the past five years with more focus on how a company manages itself, and, in particular, how it identifies, assesses and mitigates risks. The filing will assist regulators in fulfilling their oversight responsibilities.
