NAIC 2016 Summer National Meeting and Subsequent Developments

11 October 2016
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Key takeaways

  • The XXX/AXXX Credit for Reinsurance Model Regulation has been revised to eliminate the “all or nothing” penalty in case of a shortfall in either the Primary or Other Security. Under the current draft of the Model Regulation, which will be ready for adoption at the next national meeting, reinsurance credit will be allowed up to the amount of the Primary Security.
  • The NAIC is moving forward with its effort to construct a U.S. group capital calculation using an RBC aggregation methodology, exposing a survey concerning the scope of the group and the construct of the calculation until October 25, 2016.
  • The NAIC is expanding its focus on consumer protection issues to include insurers’ use of mandatory arbitration clauses and a potential market conduct certification program for the states.