18 August 2014Actuarial & underwriting

NAIC implements further XXX/AXXX changes

The executive committee of the National Association of Insurance Commissioners has adopted the XXX/AXXX Reinsurance Framework, furthering an action plan to develop proposed changes to the insurer/captive regulations specific to XXX/AXXX transactions.

The NAIC says that the XXX/AXXX Reinsurance Framework would not change the statutory reserve requirements; rather, it would change what types of assets or securities are needed to back those reserve liabilities. The framework would also require the ceding company to disclose the assets and securities used to support the reserves and hold an RBC cushion if the captive does not file RBC.

With this adoption, numerous groups will develop the details to create the framework for subsequent consideration by the entire NAIC membership.

Adam Hamm, NAIC president and North Dakota insurance commissioner, comments: “The XXX/AXXX Reinsurance Framework is an important regulatory initiative, and this adoption will allow us to move expeditiously to develop a comprehensive framework proposal.”


More on this story

news
30 August 2023   The association has published a new white paper that looks at emerging issues.
Analysis
20 January 2023   Commissioner McClain has been appointed to two committees at the association.
article
17 December 2021   Award renamed for Ray Farmer for years of leadership in regulation and service.