NAIC Statement Regarding Adoption of RMORSA Model Act and Revisions to AG38
WASHINGTON, D.C. - September 12, 2012 — National Association of Insurance Commissioners (NAIC) President and Florida Insurance Commissioner Kevin M. McCarty issued the following statement:
“Today the NAIC held a joint call of the Executive Committee/Plenary, during which the NAIC concluded two priority initiatives for the year; adoption of the Risk Management and Own Risk and Solvency Assessment (RMORSA) Model Act, and revisions to Actuarial Guideline XXXVIII (AG38) .
The RMORSA Model Act is a key element in our effort to modernize the U.S. approach to the regulation of insurance groups. The Model passed today follows our recent work on the NAIC Holding Company Model Act, which I am pleased to say has been adopted in ten states.
We began focusing efforts on AG38 when issues concerning its use came to our attention last year. These revisions represent a resolution that ensures adequate reserves to protect consumers while maintaining a level playing field and competitive markets for companies issuing these products.
The passage of each of these items could not have been done without the dedication of each of our members, and my personal thanks to those most intimately involved in making today’s passage of each item possible.”
Discussion of the Standard Valuation Manual, which was included on the agenda, was deferred to a later meeting.
About the NAIC
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 the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally. NAIC members, together with the central resources of the NAIC, form the national system of state-based insurance regulation in the U.S. For more information, visit www.naic.org.