NAIC Executive Committee Votes Against Adoption of ACLI Proposals
On January 29, 2009, the National Association of Insurance Commissioners (the “NAIC”) held a meeting of the Executive Committee to consider the final recommendations (the “Final Recommendations”) of the Capital and Surplus Relief (EX) Working Group (the “CS Working Group”) regarding the American Council of Life Insurers’ (“ACLI”) nine-part proposal (the “ACLI Proposal”) requesting that the NAIC make adjustments to existing solvency framework components that impact statutory capital and surplus requirements on an accelerated basis.
Rather than considering each of the nine proposals individually, the Executive Committee voted to deliberate on the entire ACLI Proposal as one package, and voted 16-1 against supporting the Final Recommendations. The Executive Committee noted during the call that: (i) requests set forth in the ACLI Proposal will be referred to the appropriate NAIC technical groups and committees for further consideration and (ii) should an insurer require emergency relief, state regulation permits regulators to grant it on a case-by-case basis.
This Stroock Special Bulletin discusses these developments relating to the Final Recommendations and the ACLI Proposal.