2013-08-22 19:14:00 -
WASHINGTON, D.C., August 22, 2013 - The American Insurance Association (AIA)
will support an industry-drafted corporate governance model law and industry-
supported modifications to SERFF's operating procedures at the upcoming National
Association of Insurance Commissioners' meeting. The NAIC will hold its Summer
National Meeting in Indianapolis, Indiana on August 24-26.
"AIA supports the NAIC's adoption and subsequent enactment by the states of a
corporate governance model law," said Adam Kerns, assistant general counsel for
AIA. "The industry-drafted model law will assist regulators and insurers alike
by providing a more streamlined approach to updating and maintaining an
understanding of insurers' corporate governance activities on an annual basis."
The model law's required annual filing will provide a summary of the corporate
governance framework, processes, and activities in place at the insurer. It
remove filing requirements that have become redundant and unnecessary
because of this new annual filing.
"At the request of regulators, AIA has been working with various industry
stakeholders to draft a model law for an annual corporate governance filing,"
added Kerns. The draft, which will be released and presented at the Corporate
Governance (E) Working Group session, includes the majority of Exhibit A from
the Working Group's "Proposed Responses to a Comparative Analysis of Existing
U.S. Corporate Governance Requirements," the confidentiality provisions from the
Risk Management and Own Risk and Solvency Assessment Model Act, and the NAIC's
lead state concept meant to streamline the state regulatory process for both
insurers and regulators.
New Operating Procedures for the System for Electronic Rate and Form Filing
(SERFF), which are intended to replace the current bylaws and eliminate the
SERFF board as it currently exists, will be presented to the Executive (EX)
Committee. AIA joined the American Council of Life Insurers and America's
Health Insurance Plans in proposing modifications to Commissioner Steve
Robertson's (IN) initial proposed Operating Procedures.
"Our jointly proposed modifications include a requirement that SERFF transaction
fees be reasonable in relation to the costs of the continued development and
operations of SERFF," said Lisa Brown, senior counsel and director, compliance
resources for AIA. "We are also calling for restrictions on the future use of
SERFF revenue and are hopeful that Commissioner Robertson will incorporate our
suggested modifications into his final proposal."
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Source: American Insurance Association via Thomson Reuters ONE