The Financial Regulation Standards and Accreditation (F) Committee (the “Committee”) Spring NAIC Meeting addressed a number of pertinent topics; however, the majority of debate and comments centered around the definition of “Multi-State Insurer” for accreditation purposes.
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Captives
Potential New York Legislation to Introduce Tax Changes With Respect To Captive Insurers
Earlier in 2014, Governor Andrew Cuomo introduced a series of tax reforms in his budget bill (the “Bill”) which is currently being addressed by the state legislature. …
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FIO Weighs in on Financial Captive Reinsurers and the Use of PBR
By Zachary Lerner & Troutman Pepper Locke on
On December 12, 2013, the Federal Insurance Office (the “FIO”) published its long-delayed report entitled “How to Modernize and Improve the System of Insurance Regulation in the United States” (the “Report”). The FIO was required under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act to issue the Report almost two years ago. …
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Does NRRA Capture Captives?
Continuing the controversy first discussed in our earlier article (a copy of which can be accessed here), uncertainty remains over whether the self-procurement tax and regulatory provisions of the Non-admitted and Reinsurance Reform Act, enacted as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, apply to non-admitted insurance procured from a captive insurance company. …
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FIO Showing Increased Willingness to Intervene on Use of Captives to Finance Perceived Excess Reserves
In recent years, the use of captives to help life insurers finance perceived excess XXX and AXXX reserves has accelerated. The NAIC continues to monitor the emerging practice and has drawn considerable attention to the matter through its solicitation of opinions by various players in the industry as well as through the publication of white paper on the matter and actions by the Principle-Based Reserving Implementation (EX) Task Force at the NAIC’s Summer National Meeting. …
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NAIC Increases Focus on Use of Captives by Life Insurers
By Zachary Lerner & Troutman Pepper Locke on
On August 24th, the Principle-Based Reserving Implementation (EX) Task Force (the “Task Force”) of the NAIC met at the NAIC Summer National Meeting. During the meeting, the Task Force set forth additional charges with respect to the use of captives by life insurers and determined that the NAIC needs to “further assess the solvency implications of life insurer-owned captive insurers and other alternative mechanisms in the context of [Principle-Based Reserving].”…
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