Group Solvency Issues (EX) Working Group
Executive (EX) Committee
Solvency Modernization Initiatives (EX) Task Force

2009 Charges

• Assist the Task Force with the “group” focus area in the Solvency Modernization Initiative.
• Study the need to modify the Holding Company Model Act by gathering input from all states regarding the use of the existing model and its effectiveness in addressing the issues that exist within insurer groups, particularly considering issues identified during this most recent economic downturn. At the conclusion of such study, provide a recommendation to the Financial Condition (E) Committee, including a request for Model Law Development/Change if the recommendation is for the NAIC to devote its resources to such an effort.
• Study the international solvency issues related to groups and the need to modify the Holding Company Model Act for any proposed changes in this area. This study should include consideration of the interaction between federal and state financial regulators and any changes that would be necessary to improve regulatory oversight provided by the Holding Company Model Act. At the conclusion of such study, provide a recommendation to the Financial Condition (E) Committee.
• Study the need to develop group-wide supervision which may include group-wide capital requirements. The study should consider possible approaches to such capital requirements, including how capital for financial conglomerates and non-regulated entities are calculated.
• Recommend courses of action regarding Supervisory Colleges and/or other methods of communication and coordination amongst cross-border (including cross-state) and cross-sectoral supervisors.
• Critically review and provide input and drafting to the International Association of Insurance Supervisors Insurance Groups and Cross-Sectoral Issues Subcommittee or on other IAIS papers as assigned by the parent Task Force. From this work, identify future initiatives to improve our regulatory solvency system.