The National Association of Insurance Commissioners could adopt a derivatives measure and a producer licensing process technology measure at the upcoming summer meeting.
The NAIC, Kansas City, Mo., has included those items on the agenda for a joint meeting of its executive committee and of its plenary — the body that represents all voting members of the NAIC.
The NAIC’s summer meeting is set to start June 13 in Minneapolis. The executive committee and the plenary expect to hold the joint meeting June 15.
- The derivatives measure would create a model regulation that would set standards for the prudent use of derivatives by insurers.
The model would require insurers using derivatives to develop written guidelines and get insurance commissioner approval for the guidelines.
The guidelines would have to explain why the insurer was using derivatives and establish counterparty exposure limits and credit quality standards.
The insurer could use derivatives that were traded on a qualified domestic or foreign exchange, or entered into with or guaranteed by a business entity.
The insurer also could use derivatives “issued or written with issuer of the underlying interest on which the derivative instrument is based,” according to the draft text.
- The licensing technology measure concerns the NAIC/National Insurance Producer Registry attachments warehouse.
The warehouse is a new, electronic tool that stores documents submitted by applicants, according to a measure drafting note.
The measure on the meeting agenda would create a model NAIC/NIPR attachments warehouse bulletin.
State insurance regulators could use the bulletin to invite insurers and producers to start using the attachments warehouse to speed up the producer licensing process.