The American Insurance Association secured its top priority, reopening of the Model Holding Company Model Law for further modification, at the recent spring meeting of the National Association of Insurance Commissioners in Orlando.
The NAIC Executive Committee voted by voice vote at the conference’s plenary session last Sunday to approve reopening the Model Holding Company act to change, after adding some guidance. The issue was referred to the Financial Condition (E) Committee where development of any changes would take place as part of the 2014 work of the Group Solvency Issues (E) Working Group. The NAIC expects that any amendments to the Act would be completed by year’s end.
“We don’t expect this to be a long process,” said Adam Kerns, AIA assistant general counsel. The Executive Committee “implied that they wanted this done as soon as practical.”
The AIA wants the E Group to develop uniform group supervision language that reflects the fact that interest in insurance regulation has changed to a global issue since the last model law was approved in 2010. It’s estimated there are 20-some states that have adopted the latest version of the Holding Company Model Law, Kerns said.
“As things seemed to start moving quickly on the international regulatory front, states were taking it upon themselves to amend their Model Holding Company Acts to address the issue of group-wide supervision,” Kerns said in explaining why AIA has established uniformity as a priority.
“It became quite apparent that the NAIC needed to re-open the Model in order to develop uniform language for the states to adopt on this issue,” Kerns said. “It is important that when these Models are enacted in the states that they are done so uniformly.”