Members of the Financial Analysis Working Group at the National Association of Insurance Commissioners have received a confidential presentation on insurers that may have problems.
The working group, part of the Financial Condition Committee at the NAIC, Kansas City, Mo., “met in executive session” Tuesday, officials report in a summary of the working group’s activities posted on the NAIC Web site.
Working group members “heard presentations on nationally significant insurers and groups that are exhibiting characteristics of potentially troubled companies,” officials report.
Another arm of the NAIC, the Financial Regulation Standards and Accreditation Committee, voted to release revisions made in 2008 to the Model Regulation to Define Standards and Commissioner’s Authority for Companies Deemed to be in a Hazardous Financial Condition.
What Your Peers Are Reading
The committee has opened the draft model revisions up for public comment for 30 days.
“The revisions provide additional standards for consideration by the commissioner to determine whether the continued operation of any insurer might be deemed to be hazardous to its policyholders, creditors or the general public,” officials write in a summary describing that committee’s activities. “In addition, the revisions give the commissioner additional authority to issue an order requiring companies deemed to be in a hazardous financial condition to take corrective action.”
NAIC panels also are reviewing the “capital and surplus relief” proposals submitted in November 2008 by the American Council of Life Insurers, Washington.
Regulators decided against adopting the proposals as is on an expedited emergency basis, but the NAIC is continuing to review the proposals.