Current through August 26, 2024
(1) DISCRETIONARY
ANNUAL FILING EXEMPTION. Where an insurance holding company system has
previously filed the annual group capital calculation at least once, the lead
state commissioner has the discretion to exempt the ultimate controlling person
from filing the annual group capital calculation if the lead state commissioner
makes a determination based upon that filing that the insurance holding company
system meets all of the following criteria:
(a) The insurance holding company 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.
(b) The insurance
holding company system has no insurers within its holding company structure
that are domiciled outside of the United States or one of its
territories.
(c) The insurance
holding company system has no banking, depository or other financial entity
that is subject to an identified regulatory capital framework within its
holding company structure.
(d) The
insurance holding company system attests that there are no material changes in
the transactions between insurers and non-insurers in the group that have
occurred since the last filing of the annual group capital.
(e) The non-insurers within the insurance
holding company system do not pose a material financial risk to the insurer's
ability to honor policyholder obligations.
(2) DISCRETIONARY LIMITED FILING. Where an
insurance holding company system has previously filed the annual group capital
calculation at least once, the lead state commissioner has the discretion to
accept a limited group capital filing in lieu of the group capital calculation
if the insurance holding company 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 all of
the following additional criteria are met:
(a)
The insurance holding company system has no insurers within its holding company
structure that are domiciled outside of the United States or one of its
territories.
(b) The insurance
holding company system does not include a banking, depository or other
financial entity that is subject to an identified regulatory capital
framework.
(c) The insurance
holding company system attests that there are no material changes in
transactions between insurers and non-insurers in the group that have occurred
since the last filing of the report to the lead state commissioner and the
non-insurers within the insurance holding company system do not pose a material
financial risk to the insurers ability to honor policyholder
obligations.
(3) PERIODIC
FILING REQUEST. For an insurance holding company system that has previously met
an exemption with respect to the group capital calculation pursuant to sub. (1)
or (2), the lead state commissioner may require at any time the ultimate
controlling person to file an annual group capital calculation, completed in
accordance with the NAIC group capital calculation instructions, if any of the
following criteria are met:
(a) Any insurer
within the insurance holding company system is in a risk-based capital action
level event as set forth in ch. Ins 51, or a similar standard for a non-U.S.
insurer.
(b) Any insurer within the
insurance holding company system meets one or more of the standards of an
insurer deemed to be in hazardous financial condition as described in s.
623.11,
645.31,
or
645.41,
Stats.
(c) Any insurer within the
insurance holding company system otherwise exhibits qualities of a troubled
insurer as determined by the lead state commissioner based on unique
circumstances including, but not limited to, the type and volume of business
written, ownership and organizational structure, federal agency requests, and
international supervisor requests.
(4) NON-U.S. JURISDICTION. A non-U.S.
jurisdiction is considered to recognize and accept the group capital
calculation if it satisfies the following criteria:
(a) With respect to s. Ins 40.03 (9) (d) 4.:
1. The non-U.S. jurisdiction recognizes the
U.S. state regulatory approach to group supervision and group capital, by
providing confirmation by a competent regulatory authority, in such
jurisdiction, that insurers and insurance groups 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 will 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-U.S.
jurisdiction; or
2. Where no U.S.
insurance groups operate in the non-U.S. jurisdiction, that non-U.S.
jurisdiction indicates formally in writing to the lead state with a copy to the
international association of insurance supervisors that the group capital
calculation is an acceptable international capital standard. This will serve as
the documentation otherwise required in subd. 1.
(b) The non-U.S. jurisdiction provides
confirmation by a competent regulatory authority in such jurisdiction that
information regarding insurers and their parent, subsidiary, or affiliated
entities, if applicable, shall be provided to the lead state commissioner in
accordance with a memorandum of understanding or similar document between the
commissioner and such jurisdiction, including the International Association of
Insurance Supervisors Multilateral Memorandum of Understanding or other
multilateral memoranda of understanding coordinated by the NAIC. The
commissioner shall determine, in consultation with the NAIC committee process,
if the requirements of the information sharing agreements are in
force.
(5) PUBLISHED
NON-U.S. JURISDICTIONS. A list of non-U.S. jurisdictions that recognize and
accept the group capital calculation will be published through the NAIC
committee process.
(6) PUBLISHED
JURISDICTIONS. A list of jurisdictions that recognize and accept the group
capital calculation pursuant to s. Ins 40.03 (9) (d) 4., is published through
the NAIC committee process to assist the lead state commissioner in determining
which insurers shall file an annual group capital calculation. The list will
clarify those situations in which a jurisdiction is exempted from filing under
s. Ins 40.03 (9) (d) 4.
(7)
REQUIREMENTS FOR CERTAIN JURISDICTIONS. To assist with a determination under s.
Ins 40.03 (9) (d) 5., the list will identify whether a jurisdiction that is
exempted under either s. Ins 40.03 (9) (d) 3., or s. Ins 40.03 (9) (d) 4.
requires a group capital filing for any U.S. based insurance group's operations
in that non-U.S. jurisdiction.
(8)
CONFIRMATIONS. For a non-U.S. jurisdiction where no U.S. insurance groups
operate, the confirmation provided to meet the requirement of sub. (4) (a) 2.,
will serve as support for recommendation to be published as a jurisdiction that
recognizes and accepts the group capital calculation through the NAIC committee
process.
(9) LEAD STATE
DETERMINATION AND JUSTIFICATION. If the lead state commissioner makes a
determination pursuant to s. Ins 40.03 (9) (d) 4. that differs from the NAIC
list, the lead state commissioner shall provide thoroughly documented
justification to the NAIC and other states.
(10) LEAD STATE RECOMMENDATIONS. Upon
determination by the lead state commissioner that a non-U.S. jurisdiction no
longer meets one or more of the requirements to recognize and accept the group
capital calculation, the lead state commissioner may provide a recommendation
to the NAIC that the non-U.S. jurisdiction be removed from the list of
jurisdictions that recognize and accept the group capital
calculation.
