Current through Reg. 50, No. 187; September 24, 2024
(1) For the purposes of this rule,
"internationally active insurance group" means an insurance holding company
system that:
(a) Includes an insurer
registered under Rule
69O-143.046, F.A.C.;
and
(b) Meets the following
criteria:
1. Premiums written in at least
three countries;
2. The percentage
of gross premiums written outside the United States is at least ten percent
(10%) of the insurance holding company system's total gross written premiums;
and
3. Based on a three-year
rolling average, the total assets of the insurance holding company system are
at least fifty billion dollars ($50,000,000,000) or the total gross written
premiums of the insurance holding company system are at least ten billion
dollars ($10,000,000,000).
(2) "Insurance Holding Company System"
consists of two or more affiliated persons, one or more of which is an
insurer.
(3)
(a) The Office is authorized to act as the
groupwide supervisor for any internationally active insurance group in
accordance with Rule 69O-143.046, F.A.C., and Section
628.804, F.S. However, the
Office may otherwise acknowledge another regulatory official as the groupwide
supervisor where the internationally active insurance group:
1. Does not have substantial insurance
operations in the United States;
2.
Has substantial insurance operations in the United States, but not in this
state; or
3. Has substantial
insurance operations in the United States and this state, but the Office has
determined pursuant to the factorsset forth in subsections (4) and (8) that the
other regulatory official is the appropriate groupwide
supervisor.
(b) An
insurance holding company system that does not otherwise qualify as an
internationally active insurance group may request that the Office make a
determination or acknowledgment as to a groupwide supervisor pursuant to this
subsection.
(4)
(a) In cooperation with other state, federal
and international regulatory agencies, the Office will identify a single
groupwide supervisor for an internationally active insurance group. The Office
may determine that the Office is the appropriate groupwide supervisor for an
internationally active insurance group that conducts substantial insurance
operations concentrated in this state. However, the Office may acknowledge that
a regulatory official from another jurisdiction is the appropriate groupwide
supervisor for the internationally active insurance group. The Office shall
consider the following factors when making a determination or acknowledgment
under this subsection:
1. The place of
domicile of the insurers within the internationally active insurance group that
hold the largest share of the group's written premiums, assets or
liabilities;
2. The place of
domicile of the top-tiered insurer(s) in the insurance holding company system
of the internationally active insurance group;
3. The location of the executive offices or
largest operational offices of the internationally active insurance
group;
4. Whether another
regulatory official is acting or is seeking to act as the groupwide supervisor
under a regulatory system that the Office determines to be:
a. Substantially similar to the system of
regulation provided under the laws of this state, or
b. Otherwise sufficient in terms of providing
for groupwide supervision, enterprise risk analysis, and cooperation with other
regulatory officials; and
5. Whether another regulatory official acting
or seeking to act as the groupwide supervisor provides the Office with
reasonably reciprocal recognition and cooperation.
(b) However, a regulatory official identified
under this rule as the groupwide supervisor may determine that it is
appropriate to acknowledge another supervisor to serve as the groupwide
supervisor. The acknowledgment of the groupwide supervisor shall be made after
consideration of the factors listed in subparagraphs (a)1. through (a)5. above,
and shall be made in cooperation with and subject to the acknowledgment of
other regulatory officials involved with supervision of members of the
internationally active insurance group, and in consultation with the
internationally active insurance group.
(5) Notwithstanding any other provision of
law, when another regulatory official is acting as the groupwide supervisor of
an internationally active insurance group, the Office shall acknowledge that
regulatory official as the groupwide supervisor. However, in the event of a
material change in the internationally active insurance group that results in:
(a) The internationally active insurance
group's insurers domiciled in this state holding the largest share of the
group's premiums, assets or liabilities; or
(b) This state being the place of domicile of
the top-tiered insurer(s) in the insurance holding company system of the
internationally active insurance group, the Office shall make a determination
or acknowledgment as to the appropriate groupwide supervisor for such an
internationally active insurance group pursuant to subsection
(4).
(6) Pursuant to
Section 628.801(3),
F.S., the Office is authorized to collect from any insurer registered pursuant
to Rule 69O-143.046, F.A.C., all
information necessary to determine whether the Office may act as the groupwide
supervisor of an internationally active insurance group or if the Office may
acknowledge another regulatory official to act as the groupwide supervisor.
Prior to issuing a determination that an internationally active insurance group
is subject to groupwide supervision by the Office, the Office shall notify the
insurer registered pursuant to Rule
69O-143.046, F.A.C., and the
ultimate controlling person within the internationally active insurance group.
The internationally active insurance group shall have not less than thirty (30)
days to provide the Office with additional information pertinent to the pending
determination. The Office shall publish the identity of internationally active
insurance groups that the Office has determined are subject to groupwide
supervision by the Office.
(7) If
the Office is the groupwide supervisor for an internationally active insurance
group, the Office is authorized to engage in any of the following groupwide
supervision activities.
(a) Assess the
enterprise risks within the internationally active insurance group to ensure
that:
1. The material financial condition and
liquidity risks to the members of the internationally active insurance group
that are engaged in the business of insurance are identified by management;
and
2. Reasonable and effective
mitigation measures are in place.
(b) Request, from any member of an
internationally active insurance group subject to the Office's supervision,
information necessary and appropriate to assess enterprise risk, including, but
not limited to, information about the members of the internationally active
insurance group regarding:
1. Governance, risk
assessment and management;
2.
Capital adequacy; and
3. Material
intercompany transactions.
(c) Coordinate and, through the authority of
the regulatory officials of the jurisdictions where members of the
internationally active insurance group are domiciled, compel development and
implementation of reasonable measures designed to ensure that the
internationally active insurance group is able to timely recognize and mitigate
enterprise risks to members of such internationally active insurance group that
are engaged in the business of insurance.
(d) Communicate with other state, federal and
international regulatory agencies for members within the internationally active
insurance group and share relevant information subject to the confidentiality
provisions of Section
628.801(4),
F.S., through supervisory colleges as set forth in Section
628.805, F.S., or
otherwise.
(e) Enter into
agreements with or obtain documentation from any insurer registered under Rule
69O-143.046, F.A.C., any member
of the internationally active insurance group, and any other state, federal and
international regulatory agencies for members of the internationally active
insurance group, providing the basis for or otherwise clarifying the Office's
role as groupwide supervisor, including provisions for resolving disputes with
other regulatory officials. Such agreements or documentation shall not serve as
evidence in any proceeding that any insurer or person within an insurance
holding company system not domiciled or incorporated in this state is doing
business in this state or is otherwise subject to jurisdiction in this
state.
(f) Other groupwide
supervision activities, consistent with the authorities and purposes enumerated
above, as considered necessary by the Office.
(8) If the Office acknowledges that another
regulatory official from a jurisdiction that is not accredited by the NAIC is
the groupwide supervisor, the Office is authorized to reasonably cooperate,
through supervisory colleges or otherwise, with groupwide supervision
undertaken by the groupwide supervisor, provided that:
(a) The Office's cooperation is in compliance
with the laws of this state; and
(b) The regulatory official acknowledged as
the groupwide supervisor also recognizes and cooperates with the Office's
activities as a groupwide supervisor for other internationally active insurance
groups where applicable. Where such recognition and cooperation is not
reasonably reciprocal, the Office is authorized to refuse recognition and
cooperation.
(9) The
Office is authorized to enter into agreements with or obtain documentation from
any insurer registered under Rule
69O-143.046, F.A.C., any
affiliate of the insurer, and other state, federal and international regulatory
agencies for members of the internationally active insurance group, that
provide the basis for or otherwise clarify a regulatory official's role as
groupwide supervisor.
Rulemaking Authority 624.308(1), 628.801(1), 628.804(4) FS.
Law Implemented 624.307(1),
628.801,
628.804
FS.
New 1-3-21, Amended
1-4-24.
