2008 - NAIC Proceedings Binder - 9431p

  • (p708) - 9. Receive the Report of the Financial Analysis Working Group
    • Roger Peterson (WI) delivered the report of the Financial Analysis Working Group, which met in a regulator-to-regulator session March 31, 2008, to hear presentations on nationally significant insurers and groups that are exhibiting characteristics of potentially troubled entities.
    • Upon a motion made by Mr. Armstrong and seconded by Director Hudson, the Financial Condition Committee unanimously received the report of the Financial Analysis Working Group (Attachment One).
  • (p722) - Marty Cams (AIG) said the current drafting by the UK for the IAIS issues paper seems to be in accord with Solvency II.
    • He said U.S. regulators may need to adjust to having less focus on solo entities. There are competitive issues if regulators in other jurisdictions allow reductions in capital requirements for a group and the U.S. does not follow suit. 
  • (p722) - Mr. Cams said the definition of groups/conglomerates is important and differs between the two papers. In addition, the UK draft of the issues paper assumes the parent is an insurance company, which is not the usual case in the U.S.
  • (p722) - Morag Fullilove (GNAIE) said these papers provide an opportunity for joint dialogue with industry and the NAIC.
  • To accomplish this, the Academy provides independent and objective actuarial information, analysis, and education for the formation of sound public policy.
    • This would not be necessary with PBR. Commissioner Voss said it might be time for another
      regulator educational summit on PBR similar to the one held in 2005.
  • 13, Consider Adoption to Establish the AIG Special (EX) Task Force and Adoption of its Charges
    • Superintendent Dinallo reported the NAIC took swift action to address the developments with American Insurance Group (AIG), including the recent actions of the Federal Reserve, and their impact on AIG insurance interests.
    • Superintendent Dinallo indicated that the Task Force would oversee AIG insurance interests in this financial situation and coordinate among state regulators, federal government officials, company representatives and international regulatory interests.
    • Superintendent Dinallo indicated that the Task Force will utilize the Form A to manage the communication of information and coordination of activities related to the change in ownership approval process for insurers proposed to be sold by the AIG holding company, with the Form A Subgroup being composed of the states with domestic AIG insurers. Superintendent Dinallo stated that the Task Force will also specifically ensure the regulatory concerns regarding the 17 life insurers in the AIG group are adequately addressed in the overall plan for AIG and its implementation.
    • Commissioner Mitchie made a motion, seconded by Director Scheiber, to establish the AIG Special (EX) Task Force and to adopt its charges (Attachment Nine). The motion passed.
  • PROPOSED CHARGES FOR AIG SPECIAL (EX) TASK FORCE
  • Government Relations Leadership Council (EX) Task Force, Washington, DC, September 24, 2008
    • While state insurance regulators have clearly performed well with respect to AIG's insurance subsidiaries, there is a perception that more coordination is needed to address the problems created by the AIG holding company, so that regulators (whether state or federal) have an enterprise-wide view of complex companies.
  • Superintendent Dinallo agreed, but suggested that any alert or bulletin issued should be specific as to AIG because the current concern involves AIG.
    • He also noted that the New York State Insurance Department set up an AIG consumer hotline and received around 1,000 calls the first day....