The 2024 Summer National Meeting (the “Summer National Meeting”) of the National Association of Insurance Commissioners (the “NAIC”) was held from August 12 to August 15, 2024, in Chicago, Illinois with attendees participating virtually or in person.
- Highlights from the Summer National Meeting and recent interim meetings include:The Financial Analysis Solvency Tools (E) Working Group has proposed revisions to the NAIC Financial Analysis Handbook (the “Financial Analysis Handbook”) to increase attention to Form A and disclaimer of control/affiliation filings, including to focus on factors that indicate control of an insurer beyond ownership of voting securities. The Working Group also adopted Financial Analysis Handbook guidance for regulators’ review of the terms and fairness of affiliated IMAs. These actions are part of the NAIC’s initiative related to considerations associated with (but not exclusive to) private equity ownership of insurers.
- The NAIC adopted Valuation of Securities (E) Task Force’s amendment to the definition of “NAIC Designation” in the P&P Manual that focuses on the “investment risk” of a security instead of the narrower “credit risk” in the prior definition. However, it deferred consideration of VOSTF’s amendment to allow the SVO to challenge NAIC Designations assigned based on CRP ratings in the filing exemption process, which will be taken up at a Financial Condition (E) Committee meeting on August 29, 2024.
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