NAIC to Consider Formal Adoption of New Receivership Model in December

Following a two-day meeting in Chicago the week of November 6, 2005, the NAIC's Financial Condition (E) Committee voted to approve a revised version of the proposed new model receivership act and to recommend the new model for formal adoption by the NAIC in conjunction with the NAIC's Winter National Meeting in Chicago early next month.

During the E Committee meeting this week, review and discussion was focused on an October 31 working draft, which was redlined to show changes made since the proposed model was approved by the NAIC's Receivership and Insolvency Task Force (RITF) in May. Those changes primarily incorporated new proposals that were introduced at E Committee in mid-August, several of which were subjects of substantial debate. Written comments were submitted by NOLHGA, ACLI, NCIGF, AIA, PCI, and other interested-party stakeholders and industry representatives. Representatives of those groups also appeared and participated in discussion and debate at the meeting. Although a final version of the proposed model is not yet available, it appears that the draft ultimately approved by E Committee will closely resemble the draft previously adopted by the RITF in May, with a few relatively minor changes.

E Committee has indicated that the new model, as revised, will be referred to the NAIC's Executive (EX) Committee and Plenary for consideration in connection with the December NAIC meeting in Chicago. According to the NAIC's preliminary agenda, the joint EX/Plenary session has been scheduled for 2:30 p.m. to 4:00 p.m. on December 4.

To the extent the revised model is formally adopted by the NAIC at this meeting, it will likely then be referred to the NAIC's Financial Regulation Standards and Accreditation (F) Committee for consideration as an accreditation standard for the states. NOLHGA will continue to monitor developments with respect to the proposed new model, as well as the accreditation review, and will continue to provide updates to its members.

  Staff Contact - Joni Forsythe States General Life Insurance Company (Tex.)

Opt-Out Deadline for Assumption Agreement Is Next Week

The signed assumption agreement with New Era Life Insurance Company and its affiliate, Philadelphia American Life Insurance Company, for the assumption of the remainder of the States General insurance business was sent to affected associations in an opt-out package by overnight delivery on October 19, 2005. The opt-out deadline is Friday, November 18. If you have any questions regarding participation, please contact Joni Forsythe at 703.787.4103.

Task Force Chair - Tad Rhodes;   Staff Contact - Joni Forsythe