Assessment and Capacity Reports Posted to NOLHGA's Web Site
Updated versions of NOLHGA's annual Assessment and Capacity Reports have been posted to the NOLHGA Web site. They can be found in the Public Content section under "Facts and Figures--Assessment Data."
NOLHGA annually compiles information from guaranty associations on assessment activity--whether assessed, called (billed), or refunded. This information is used to generate various reports reflecting capacity or assessment activity (amounts assessed, called, or refunded) by insolvency, state, year, or account. Please note that all amounts are in the thousands.
The reports cover the period from 1988 to 2005 and contain assessment information on approximately 200 insolvent companies. If any guaranty association personnel note an error in the data, please submit corrected information to Paul Peterson at [email protected] or 703.787.4119.
Staff Contact - Paul PetersonNAIC to Consider Model Receivership Law for State Accreditation Standards
On October 23, 2006, the NAIC's Receivership and Insolvency Task Force (RITF) voted to adopt a recommendation for development of new state financial accreditation standards based on the NAIC's Insurer Receivership Model Act (IRMA), the receivership model adopted in December 2005.
The recommendation lists 20 "critical elements" that are identified as necessary to have a functioning receivership system or are otherwise recommended as essential for the effective management of multi-state receiverships. These "critical elements" include citations to sections of the IRMA model deemed to satisfy the criteria for each of the respective elements. In all, there are 40 different sections of the model, covering 62 pages of single-spaced text, cited in the recommendation. Following the RITF vote, NAIC staff advised that the RITF will be submitting the recommendation directly to the NAIC's Financial Regulation Standards and Accreditation (F) Committee (FRSAC) at or before the December 2006 NAIC meeting.
When work on this accreditation initiative began early this year, the NAIC received comment letters from a broad spectrum of industry representatives urging against expansion of the financial accreditation program as a means to compel adoption of a new and controversial NAIC receivership model. The letters raised a multitude of issues, concerns, and objections, including, among other things, the disconnect between the NAIC's receivership model law and solvency regulation, which is the purpose of the accreditation program; as well as the burdens imposed on states as a result of new accreditation requirements, particularly those requiring specific legislative action by states. All discussion and consideration of these issues was deferred for consideration by the FRSAC, and the focus of the efforts to date was limited to preparing a recommendation concerning critical elements for FRSAC consideration. With the matter now pending with the FRSAC, NOLHGA anticipates that discussion on the merits of the accreditation initiative can begin.
The recommendation, as adopted by the RITF, is available on the NAIC Web site.
Staff Contact - Joni ForsytheNOLHGA Web Site Receives Award
NOLHGA's Web site, which was redesigned in January 2006, received an Associations Standard of Excellence award from the Web Marketing Association in its annual WebAwards competition. The award was given to BrowserMedia, the Web design firm that developed the new site; the firm won 12 awards overall. According to the Web Marketing Association, the WebAwards competition provides "a forum to recognize the people and organizations responsible for developing some of the most effective Web sites on the Internet today." For more information, visit www.webaward.org.
Staff Contact - Sean McKenna