Principles-Based Reserving (EX) Working Group
Executive (EX) Committee
Solvency Modernization Initiative (EX) Task Force

2009 Charges

• To serve as a coordinating body with all NAIC technical groups involved with projects related to a principles-based approach to regulation and assist the Task Force with the “insurance valuation” focus area in the Solvency Modernization Initiative.
• Consider policy and practice issues related to principles-based regulation for life insurance and thereafter property and casualty insurance, including but not limited to the impact on areas such as corporate governance, examination and analysis, as well as staff resources and other insurance department administrative concerns.
• Focus on balancing theoretical approaches with effective regulatory practices to achieve desired end-results in solvency monitoring efforts, and further coordinate with NAIC leadership to provide direction to NAIC technical groups, including whether and to what degree principles-based approaches should be pursued, setting timelines for such pursuit, and ensuring other issues are addressed prior to or concurrently with implementation of principles-based approaches by the technical groups.
• Report the status of its work to, and seek guidance from, the parent committee no less frequently than a quarterly basis.
• Evaluate necessary changes to existing state insurance laws, regulations or administrative policies to effectuate a principles-based regulatory framework.
• Critically review and provide input and drafting on the International Association of Insurance Supervisors papers, as assigned by the parent Task Force. From this work, identify future initiatives to improve our regulatory solvency system.