NU Online News Service, March 11, 1:13 p.m. — Atlanta
The New York State Insurance Department presented a four-part plan here for streamlining the work of the Securities Valuation Office, an arm of the National Association of Insurance Commissioners, Kansas City, Mo.
The SVO is responsible for valuing the securities owned by state-regulated insurance companies and assessing the securities’ credit quality.
One part of the New York plan, which was unveiled at the NAIC’s spring meeting, calls for exempting all securities that receive top 1 and 2 ratings from the NAIC.
Another part of the plan calls for the SVO to establish a procedure for utilization of research resources.
A third part of the plan could eventually lead to an exemption for all securities rated by a major rating agency, and a fourth part could eventually lead to consideration of alternatives for the review of unrated securities.
NAIC officials expect to give the plan a 45-day exposure period. Officials could implement it at the NAIC meeting in June.