ARIZONA
HOUSE OF REPRESENTATIVES
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SB 1006: internationally active insurance groups; supervision |
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PRIME SPONSOR: Senator Livingston, LD 22 BILL STATUS: Caucus & COW |
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Establishes the requirements for the
director (Director) of the Department of Insurance (ADOI) to determine or
acknowledge a group-wide supervisor for an Internationally Active Insurance Group
(IAIG).
History
The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization created and governed by the chief insurance regulators from each of the 50 states. According to the NAIC, there are two criteria for an insurance group to be identified as an IAIG: 1) International Activity — premiums are written in three or more jurisdictions, and percentage of gross premiums written outside the home jurisdiction are at least 10% of the group's total gross written premium; and 2) Size —based on a three-year rolling average, total assets of at least $50 billion USD, or gross written premiums of at least $10 billion USD.
Provisions
Internationally Active Insurance Groups (Sec. 2)
1. Instructs the Director to identify a single group-wide supervisor for an IAIG.
a. Permits the Director to act as the group-wide supervisor for any IAIG.
b. Allows the Director, under certain criteria, to acknowledge another regulatory official as the group-wide supervisor.
c. Outlines factors for making such determination or acknowledgement.
2. Allows an insurance holding system that does not qualify as an IAIG to request that the Director make a determination as to a group-wide supervisor.
3. Permits the chief regulatory official identified as the group-wide supervisor to determine it is appropriate to acknowledge another supervisor to serve as the group-wide supervisor.
a. Provides the requirements for such an acknowledgement.
4. Requires the Director to acknowledge the regulatory official that is acting as the group-wide supervisor of an IAIG.
5. Stipulates the Director must make a determination as to the appropriate group-wide supervisor for an IAIG, if a material change in the IAIG results in either:
a. The IAIG's insurers domiciled in this state holding the largest share of group's premiums, assets or liabilities; or
b. This state being the domicile of the top-tiered insurers in the insurance holding company system of the IAIG.
6. Permits the Director to collect all information necessary to determine whether the Director may act as the group-wide supervisor of an IAIG or may acknowledge another regulatory official.
7. Requires the Director to notify the insurer and the ultimate controlling person within the IAIG before issuing a determination that the IAIG is subject to group-wide supervision by the Director.
a. Specifies the IAIG has at least 30 days to provide the Director with additional information pertinent to the pending determination.
8. Instructs the Director to publish on ADOI's website the identity of IAIGs that are subject to group-wide supervision by the Director.
9. Outlines certain activities that the Director may engage in, if the Director is the group-wide supervisor for an IAIG.
10. Stipulates if the Director acknowledges a regulatory official from a nonaccredited jurisdiction as the group-wide supervisor, the Director may reasonably cooperate with group-wide supervision undertaken by the group-wide supervisor provided certain requirements are met.
11. Permits the Director to enter into agreements with or obtain documents from certain entities that provide the basis for or otherwise clarify a regulatory official's role as group-wide supervisor.
12. Allows the Director to adopt rules necessary for the administration of IAIGs.
Miscellaneous
13. Defines group-wide supervisor and internationally active insurance group. (Sec. 1)
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17. Fifty-fourth Legislature SB 1006
18. First Regular Session Version 2: Caucus & COW
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