Enacts new GS Chapter 58, Article 10, Part 10 (Risk Management and Own Risk and Solvency Assessment), as described below.
Enacts new GS 58-10-700 (Purpose and Scope). Applies the Part to all insurers in this State unless exempt pursuant to new GS 58-10-725. Enacts new GS 58-10-705 (Definitions). Defines six terms, including own risk and solvency assessment or ORSA (confidential internal assessment conducted by an insurer or insurance group of the material and relevant risks associated with the insurer or insurance group's current business plan, and the sufficiency of capital resources to support those risks), and ORSA Guidance Manual (current version of the ORSA Guidance Manual developed and adopted by NAIC and as amended from time to time).
Enacts new GS 58-10-710 (Risk Management Framework). Directs insurers to maintain risk management frameworks to assist with identifying, assessing, monitoring, managing, and reporting on their material and relevant risks.
Enacts new GS 58-10-715 (ORSA Requirement). Directs insurers to regularly conduct an ORSA, no less than annually, but also at any time when there are significant changes to the insurer's risk profile.
Enacts new GS 58-10-720 (ORSA Summary Report). Directs the insurer to submit to the Commissioner an ORSA Summary Report, no more than once each year, under two described circumstances. Specifies requirements for signatures and filing a copy of the report with the insurer's board of directors, and provides an allowance for the insurer to substitute a report provided to a commissioner of another state or foreign jurisdiction's regulator, if it includes comparable information.
Enacts new GS 58-10-725 (Exemption). Exempts insurers from this Part's requirements if both the insurer and its insurance group have annual assumed premiums under specified amounts, and specifies report requirements for insurers who only partially meet the exemption standards. Provides for a request for a waiver of the requirements of this Part, to be granted at the discretion of the Commissioner as described. Authorizes the Commissioner to require an insurer that qualifies for an exemption to perform certain ORSA-related tasks, notwithstanding the exemption.
Enacts new GS 58-10-730 (Contents of ORSA Summary Report). Requires an ORSA Summary Report to be prepared consistent with the ORSA Guidance Manual.
Enacts new GS 58-10-735 (Confidentiality). Provides for the confidentiality of documents and other information that are obtained by, created by, or disclosed to the Commissioner under this Part, and provides that they are not public records or subject to subpoena or discovery, or admissible as evidence in any private civil action. Authorizes the Commissioner to use the documents and information in certain ways to assist in the performance of the Commissioner's regulatory duties, including by sharing them with other regulatory organizations, subject to confidentiality requirements.
Enacts new GS 58-10-740 (Sanctions). Subjects insurers who fail, without just cause, to timely file the ORSA Summary Report as required to a civil penalty of $100 for each day's delay, not to exceed a total penalty of $1,000, to be remitted to the Civil Penalty and Forfeiture Fund.
Contains a severability clause.
Effective January 1, 2018. The Commissioner may request filing of a report under new GS 58-10-720 on or after that date.
Bill S 295 (2017-2018)Summary date: Mar 16 2017 - View summary
Bill S 295 (2017-2018)Summary date: Mar 15 2017 - View summary
To be summarized.