Current through Register Vol. 46, No. 39, September 25, 2024
(a) An entity required to file a group
capital calculation pursuant to Insurance Law sections 1503(c), 1604(c), and
1717(c) shall submit such calculation electronically.
(b) Pursuant to Insurance Law sections
1503(c)(5), 1604(c)(6), and 1717(c)(6), where an entity has previously filed
the annual group capital calculation at least once, the superintendent, when
this State is the lead state, may exempt the entity from filing the annual
group capital calculation if the superintendent determines, based upon that
filing, that the holding company system, article 16 system, or article 17
system meets all of the following criteria:
(1) has annual direct written and
unaffiliated assumed premium (including international direct and assumed
premium), but excluding premiums reinsured with the Federal Crop Insurance
Corporation and Federal Flood Program, of less than $1,000,000,000;
(2) has no insurers within its holding
company system, article 16 system, or article 17 system that are domiciled
outside of the United States or one of its territories;
(3) has no banking, depository, or other
financial entity that is subject to an identified regulatory capital framework
within its holding company system, article 16 system, or article 17
system;
(4) the holding company
system, article 16 system, or article 17 system attests that there are no
material changes in the transactions between insurers and non-insurers in the
system that have occurred since the last filing of the annual group capital
calculation; and
(5) the
non-insurers within the holding company system, article 16 system, or article
17 system do not pose a material financial risk to an insurer's ability to
honor policyholder obligations.
(c) Pursuant to Insurance Law sections
1503(c)(5), 1604(c)(6), and 1717(c)(6), where an entity has previously filed
the annual group capital calculation at least once, the superintendent, when
this State is the lead state, may accept in lieu of the group capital
calculation a limited group capital filing if:
(1) the holding company system, article 16
system, or article 17 system has annual direct written and unaffiliated assumed
premium (including international direct and assumed premium), but excluding
premiums reinsured with the Federal Crop Insurance Corporation and Federal
Flood Program, of less than $1,000,000,000; and
(2) all of the following additional criteria
are met:
(i) the entity has no insurers within
its holding company system, article 16 system, or article 17 system that are
domiciled outside of the United States or one of its territories;
(ii) the entity does not include a banking,
depository, or other financial entity that is subject to an identified
regulatory capital framework; and
(iii) the entity attests that there are no
material changes in transactions between insurers and non-insurers in the
system that have occurred since the last filing of the report to the
superintendent and the non-insurers within the system do not pose a material
financial risk to an insurer's ability to honor policyholder
obligations.
(d) For an entity that has previously met an
exemption with respect to the group capital calculation pursuant to subdivision
(b) or (c) of this section, the superintendent may require the entity at any
time to file an annual group capital calculation, completed in accordance with
the group capital calculation instructions, if any insurer within the holding
company system, article 16 system, or article 17 system:
(1) is in a risk-based capital level event as
set forth in Insurance Law section 1322 or 1324 or a similar standard for a
non-United States insurer;
(2) has
surplus to policyholders that the superintendent determines is not adequate in
relation to the insurer's outstanding liabilities or its financial needs,
pursuant to Insurance Law section 1104(c); or
(3) otherwise exhibits qualities of a
troubled insurer as determined by the superintendent based on unique
circumstances, including the type and volume of business written, ownership and
organizational structure, federal agency requests, and international supervisor
requests.
(e) A
non-United States jurisdiction is considered to "recognize and accept" the
group capital calculation if it satisfies the following criteria:
(1) For the purpose of Insurance Law sections
1503(c)(3)(D), 1604(c)(4)(D), and 1717(c)(4)(D), the non-United States
jurisdiction:
(i) recognizes the United States
state regulatory approach to group supervision and group capital by providing
confirmation, from a competent regulatory authority in such jurisdiction, that
insurers and systems, whose lead state is accredited by the NAIC under the NAIC
accreditation program, shall be subject only to worldwide prudential insurance
group supervision, including worldwide group governance, solvency and capital,
and reporting, as applicable, by the lead state and shall not be subject to
group supervision, including worldwide group governance, solvency and capital,
and reporting, at the level of the worldwide parent undertaking of the
insurance or reinsurance group by the non-United States jurisdiction;
or
(ii) where no United States
insurance system operates in the non-United States jurisdiction, that
non-United States jurisdiction indicates formally in writing to the
superintendent, when this State is the lead state, with a copy to the
International Association of Insurance Supervisors, that the group capital
calculation is an acceptable international capital standard, which shall serve
as the documentation otherwise required in subparagraph (i) of paragraph (1) of
this subdivision; and
(2) the non-United States jurisdiction
provides confirmation from a competent regulatory authority in such
jurisdiction that information regarding an insurer and its parent,
subsidiaries, or affiliates, if applicable, shall be provided to the
superintendent, when this State is the lead state, in accordance with a
memorandum of understanding or similar document between the superintendent and
such jurisdiction, including the International Association of Insurance
Supervisors Multilateral Memorandum of Understanding or other multilateral
memoranda of understanding coordinated by the NAIC. When this State is the lead
state, the superintendent shall determine, in consultation with the NAIC
committee process, if the requirements of the information sharing agreements
are in force.
(f)
(1) If the superintendent, when this State is
the lead state, makes a determination pursuant to Insurance Law section
1503(c)(3)(D), 1604(c)(4)(D), or 1717(c)(4)(D) that differs from the NAIC list
of non-United States jurisdictions that "recognize and accept" the group
capital calculation, the superintendent will provide thoroughly documented
justification to the NAIC and other states.
(2) Upon determination by the superintendent
that a non-United States jurisdiction no longer meets one or more of the
requirements to "recognize and accept" the group capital calculation, the
superintendent may recommend to the NAIC that the non-United States
jurisdiction be removed from the list of jurisdictions that "recognize and
accept" the group capital calculation.
