NATIONAL TREATMENT AND COORDINATION (E) WORKING … · NATIONAL TREATMENT AND COORDINATION (E)...

© 2019 National Association of Insurance Commissioners

Conference Call

NATIONAL TREATMENT AND COORDINATION (E) WORKING GROUP Thursday, Feb.14, 2019

1:00 p.m. EST / 12:00 noon CST / 11:00 a.m. MST/ 10:00 a.m. PST 9:00 a.m. Alaska / 7:00 a.m. Hawaii

ROLL CALL

Joel Sander, Co-Chair Oklahoma Victoria Baca New Mexico Jeff Hunt, Co-Chair Texas Cameron Piatt Ohio Cindy Hathaway Colorado Greg Lathrop Oregon Kathy Belfi Connecticut Cressinda Bybee Pennsylvania Alisa Pritchard Delaware Jay Sueoka Utah Virginia Christy Florida Ron Pastuch Washington Stewart Guerin Louisiana Michael Mancusi-Ungaro Wisconsin Debbie Doggett Missouri Linda Johnson Wyoming

AGENDA

1. Consider Adoption of its Dec. 5, 2018 minutes —Jeff Hunt (TX) Attachment One

2. Consider Adoption of the Biographical Third-Party Review (E) Subgroup minutes—Cam Piatt (OH)

3. Review Referral Memo to State Based Systems —Jeff Hunt (TX)

4. Receive Referral from Financial Analysis (E) Working Group—Jeff Hunt (TX)

5. Review F Committee Referral Letter—Jeff Hunt (TX)

6. Receive Comments and Consider Exposure 2018-09 -Holding Company Information—Jeff Hunt (TX)

7. Discuss and Expose Form 14 Updates —Jeff Hunt (TX)

8. Discuss and Expose Form 16 Instructions —Jeff Hunt (TX)

9. Discuss Any Other Matters

Attachment Two Attachment Three Attachment Four Attachment Five Attachment Six Attachment Seven Attachment Eight

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Attachment Financial Condition (E) Committee

4/--/19

© 2018 National Association of Insurance Commissioners 1

Draft: 12/10/18

National Treatment and Coordination (E) Working Group Conference Call

December 5, 2018

The National Treatment and Coordination (E) Working Group of the Financial Condition (E) Committee met via conference call Dec. 5, 2018. The following Working Group members participated: Jeff Hunt, Co-Chair (TX); Cindy Hathaway (CO); Maura Welch and Joan Nakano (CT); Virginia Christy and Alison Sterett (FL); Stewart Guerin and Mike Boutwell (LA); Debbie Doggett (MO); Matt Fischer (ND); Victoria Baca (NM); Cameron Piatt and Dale Bruggeman (OH); Cuc Nguyen (OK); Ryan Keeling (OR); Jay Sueoka (UT); Ron Pastuch (WA); and Linda Johnson (WY). Also participating was: Jan Feutral (TX).

1. Discussed Business Address Information

Jane Barr (NAIC) summarized the discussion from the previous conference call regarding Form 2 and a request from Puerto Rico to include business address information on the form because this information was required in the State Based System (SBS). Puerto Rico also asked for clarification as to whether the business address was the same as the administrative address. Ms. Barr contacted Roger Graves (SBS) and asked for clarification of the business address within the SBS. Mr. Graves said that the SBS assumed that states wanted this information and that is why it was added as a requirement; if requested, the SBS would relax that field as a requirement. Ms. Barr suggested that the Working Group send a referral to the SBS and request that the business address be removed as a requirement. The Working Group agreed.

2. Adopted Form 14 Contact/Mailing Address Changes

Mr. Hunt summarized the changes to form 14 Contact/Mailing Address. The change was a request by Alaska to add a contact for external healthcare review. Mr. Hunt noted that additional changes were made to the introductory instructions. Ms. Barr added that she received a request from Ms. Feutral suggesting that clarification was needed regarding the mailing address phone number. Ms. Feutral confirmed that most of the applications that Texas receives include the submitters phone number. Texas makes this information public, so that the submitter ends up receiving numerous calls on general inquires. Ms. Barr asked if the phone number should be updated to distinguish that the number is the “Applicant Company” phone number or a general phone number. Mr. Hunt asked what number is provided on the Jurat page. Ms. Barr said that the Jurat page asks for phone numbers of the main administrative office and the location of books and records, but it does not ask for a mailing address phone number. Mr. Hunt said that the number should be the main administrative office phone number.

Ms. Doggett made a motion, seconded by Mr. Sueoka to adopt the Form 14 changes (Attachment A), including the amendment to clarify the phone number as the main administrative office phone number. The motion passed.

David Kodama (Property Casualty Insurers Association of America—PCI) asked for clarification on why this number would be used. Ms. Feutral said that it would be for anyone who wanted to contact the company with general questions or if a specific contact and number was not listed.

3. Adopted Biographical Affidavit Instructions

Mr. Piatt summarized the changes that were added to the instructions to clarify that all questions on the biographical affidavit must have a response. Ms. Barr said that proposal 2018-05 was exposed for a 30-day public comment period, and one comment was received which stated that the instructions included a run-on sentence: “The biographical affidavit when submitted should be completed in its entirety, all questions should have a response.” Ms. Barr suggested that the sentence be reworded as such: “Each question on the biographical affidavit must have a response. If an answer is ‘None’, then so state. Incomplete biographical affidavits could delay the background investigation report and result in a delay of the application review by the state.” She also suggested that the new instruction be placed at the end of the second to last paragraph under biographical affidavit.

Ms. Johnson made a motion, seconded Mr. Piatt, to adopt the biographical affidavit instructions (Attachment B), including the amendment to reword the instruction sentences. The motion passed. Ms. Barr noted that the wording on the biographical affidavit form should change “will” to “could” in order to be consistent with the instructions. The Working Group concurred.

Attachment One

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4/--/19


4. Adopted Biographical FAQs Ms. Hunt said that the frequently asked questions (FAQs) were written to reiterate that the biographical affidavit must have a response for every question. Ms. Barr added that the FAQs were exposed for a 30-day public comment period, and no comments were received. Ms. Doggett suggested that the wording should be consistent with the language adopted in the instructions. Ms. Barr said that she will make the change to replace the word “will” to “could” in the FAQs response of “could result in a delay of the application review process.” Ms. Doggett made a motion, seconded by Mr. Piatt, to adopt the FAQs (Attachment C), including the amendment to replace the word “will” with “could.” The motion passed. 5. Exposed Biographical Affidavit and Company Licensing Best Practices Update Mr. Piatt summarized that the purpose of this update is to capture information on the subsidiary if the affiant was employed by the holding company and, otherwise, would not disclose information on the subsidiary if there was regulatory action. Mr. Hunt asked whether this would capture the current position held by the affiant. Ms. Barr clarified that the biographical affidavit is completed with a 20-year history of employment. Therefore, the affiant could have held a holding company position that directly impacted a subsidiary, and that subsidiary had gone into receivership as a result of that holding company position. The current question would not capture that information. The question was modified to include the group code if the affiant was employed at the holding company level. Mr. Bruggeman added that not all holding companies have a group code, so the question should be expanded to include the subsidiary entity name. Ms. Welch asked whether this information was listed in the employment history section of the biographical affidavit. Ms. Barr explained that the employment history will only capture the affiant’s employment with the holding company. Ms. Welch said that she has received addendums to the biographical affidavit listing all of the company’s where the affiant holds directorships. Ms. Barr asked whether question 15 needed to be expanded to capture information on the subsidiary or if detailed instructions should be added to the Company Licensing Best Practices Handbook to ensure that all states are looking into the subsidiaries if an affiant was employed at holding company level. Mr. Piatt said that the question should include the names of the companies under that holding company. Mr. Hunt said that the intent is to capture individuals who have impacted an insolvency of an insurer and hide behind the holding company. Ms. Barr suggested that the biographical affidavit and best practices be exposed for a 45-day public comment period ending Jan. 22, 2019. 6. Discussed Other Matters Ms. Barr said that the company licensing will be part of the 2019 NAIC Insurance Summit, June 3-7, 2019. If any Working Group member is interested in participating as a speaker, he/she must contact Ms. Barr. Crystal Brown (NAIC) said that NAIC staff is asking for updates to the state charts. Once the updated information is received, NAIC staff will make those updates and post them to the Uniform Certificate of Authority Application (UCAA) website by Jan. 4, 2019. The Working Group will next meet via conference call in February 2019. Having no further business, the National Treatment and Coordination (E) Working Group adjourned. W:\National Meetings\2019\Spring\Cmte\E\NTCWG\12_05_ntcwgmin.docx

Attachment One

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4/--/19


Draft: 1/22/19

Biographical Third-Party Review (E) Subgroup Conference Call

November 26, 2018

The Biographical Third-Party Review (E) Subgroup of the National Treatment and Coordination (E) Working Group of the Financial Condition (E) Committee met via conference call Nov. 26, 2018. The following Subgroup members participated: Cameron Piatt, Chair (OH); Virginia Christy and Paul Johns (FL); Amy Stuart (IL); Kathy Lamb (NV); Jay Sueoka (UT); and Ron Pastuch (WA).

1. Discussed Question 15 and the Best Practices for Reviewing a Holding Company Officer or Director on BiographicalAffidavit (Form 12)

Mr. Piatt said that questions have been raised regarding affiants employed at the holding company level and the language of Question 15 on the biographical affidavit. Jane Barr (NAIC) said that there may be officers at the holding company level that have given direction or overseen an insurance subsidiary, and that subsidiary has gone insolvent or been placed under regulatory review. She said that Question 15, as it is currently written, does not ask for more detail regarding holding company level officers, directors, or key managerial positions. She said that Question 15 pertains to the affiant’s previous employment history for a timeframe of 10-20 years, and this is where information may be falling through the cracks. She said that the purpose of revising the question is to capture more information on the subsidiaries that the affiant had control over even though they were employed by the holding company and not employed by the insurance company.

The Subgroup agreed to modify the language of the question to “To your knowledge has any company or entity (including entities controlled by the holding company) for which you were an officer or director, trustee, investment committee member, key management employee or controlling stockholder, had any of the following events occur while you served in such capacity? If employed at the holding company level provide the group code (if applicable) or entity name.”

Mr. Piatt also discussed adding language to the Company Licensing Best Practices Handbook that would provide additional guidance for regulators to review affiants employed at the holding company level. He said that regulators would be responsible for verifying holding company officers, directors, or key managerial positions through I-Site or other regulatory tools. He said that third-party vendors would not verify this information. Crystal Brown (NAIC) said that any changes to the biographical affidavit best practices would be incorporated into the primary, expansion and corporate amendment sections.

Mr. Piatt said that Ohio looks at affiliated companies for any past market conduct complaints and fines when evaluating an application. Mr. Sueoka and Ms. Stuart said that Utah and Illinois take a similar approach.

The Subgroup agreed to include the revised language in Question 15 and the incorporating guidance into the best practices. The Subgroup will send the proposal to the National Treatment and Coordination (E) Working Group for exposure.

2. Discussed Other Matters

Mr. Piatt reminded everyone that beginning Jan. 1, the biographical affidavit is good for six months from the signature date.

Having no further business, the Biographical Third-Party Review (E) Subgroup adjourned.

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Attachment Two

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TO: Roger Graves, State Based Systems Program Manager

FROM: Jeff Hunt and Joel Sander, Co-Chairs, National Treatment and Coordination (E) Working Group

RE: Referral on Business Address as a Requirement for SBS

The National Treatment and Coordination (E) Working Group is charged with utilization and implementation of the Uniform Certificate of Authority Application (UCAA) and to monitor the usage and make necessary enhancements to the Form A Database, electronic UCAA and the Company Licensing Best Practices Handbook. The Working Group recognizes the ongoing need for more effective and efficient financial regulation, utilizing any technology that may streamline processes and provide greater protection to policyholders and the public.

On its Dec. 5 conference call, the Working Group discussed adding “business address” to the address/contact notification form (Form 14) because a business address was required for State Based Systems’ regulatory toolset. During this discussion many states disclosed that business address was used for many different purposes and could reflect the administrative office address, statutory home office address or the company’s books and records address. The Working Group agreed that this SBS required field was inconsistent across all states and concurred that business address should not be included on the UCAA Form 14 address/contact notification form.

The Working Group requests that SBS consider relaxing the requirement for a business address in its regulatory toolset since the addresses used as “business address” are captured under other categories such as; statutory home office address, mailing address etc.

If there are any questions regarding this recommendation, please feel free to contact either the Working Group co-chairs or NAIC staff support (Jane Barr at [email protected])

Thank you for your consideration of this referral.

Attachment Three

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mailto:[email protected]


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MEMORANDUM

TO: Jeff Hunt and Joel Sander, Co-Chairs, National Treatment and Coordination (E) Working Group

FROM: Doug Slape, Chair, Financial Analysis (E) Working Group

DATE: June 21, 2018

RE: Referral on Accreditation Part D Guidelines

It has come to the attention of the Financial Analysis (E) Working Group (FAWG) that the National Treatment and Coordination (E) Working Group is undertaking a project to review and propose updates to Accreditation Part D: Organization, Licensing and Change of Control. FAWG commends the Working Group for taking on this project and would support efforts to elevate Part D standards to have an impact on states’ accredited status.

Through its work in monitoring troubled and potentially troubled companies, FAWG has identified situations where companies have sought to take advantage of the redomestication process to achieve regulatory arbitrage. As such, FAWG recommends that the Working Group consider expanding the scope of Part D standards to apply to redomestication applications, in addition to primary applications and Form A filings.

If there are any questions regarding this recommendation, please feel free to reach out to request additional information in this area from me or NAIC support staff (Bruce Jenson at [email protected]).

Thank you for your consideration of this referral.

Attachment Four

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10

To: Commissioner Todd E. Kiser (UT), Chair of Financial Regulation Standards and Accreditation (F) Committee

From: Jeff Hunt (TX), Chair of National Treatment and Coordination (E) Working Group

Date: February __, 2019

Re: Company Licensing Accreditation Standards

Executive Summary

The National Treatment and Coordination (E) Working Group (Working Group) is charged with monitoring usage of the Form A database and implementation of company licensing best practices. As of a result of this monitoring, updates and enhancements are made that must also be considered for their impact on the accreditation program and, specifically, Part D: Organization, Licensing and Change of Control of Domestic Insurers (Part D).

On February 14, 2019 the Working Group adopted a recommendation regarding the Part D Accreditation Standards to a) update the guidelines to reflect current practices, b) expand the scope to include redomestications, and c) include Part D in the review team’s recommendation with the result that the outcome can affect a state’s accredited status.

A baseline set of standards for the completion of primary applications for the licensing of new companies and redomestications, and Form A filings promotes reliance on other states in these important functions. Each application requires consideration of financial solvency of the insurers to both strengthen financial regulation and prevent unlicensed or fraudulent activities. The significant reliance on other states combined with the potential solvency impact of non-compliance with the Part D standards result in the recommendation to the Financial Regulation Standards and Accreditation (F) Committee outlined in this referral.

The Working Group recommends that the revisions to the guidelines be adopted with an effective date of January 1, 2020. However, the Working Group also recommends that the effective date for subjecting Part D to Recommendation A or B and thus impacting a state’s accredited status, be effective January 1, 2022. This timeline allows states to adjust to the revised guidelines before elevating the status of the Part D standards. The recommendations are intended to be prospective and applicable to filings received on or after the effective date.

Summary of Changes

Updates to Reflect Current Practices Following is a summary of the Working Group’s recommended revisions to the Part D accreditation guidelines:

1) update the scope to include primary applications for redomestications,2) update timing guidelines to rely on department policies along with state statute or regulation or the

Company Licensing Best Practices Handbook,3) add a new standard for the scope and performance of procedures for redomestications which includes

elements of a quality review in addition to communication expectations,

Attachment Five

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4) update the process-oriented guidelines for Form A filings to include documenting an assessment of business plans and the quality and expertise of key persons, and

5) require updates to the Form A database at a minimum every six months for open filings. 6) update the title of Part D to “Primary Licensing, Redomestications and Change of Control”

Expand Scope to Redomestications Insurance companies redomicile for a variety of reasons. When a redomestication occurs, state regulators take on the responsibility to review the request. The Working Group believes it is key for regulators in both states to communicate, review the information provided, and understand the reasons for the redomestication. In addition, the Working Group received a referral from the Financial Analysis (E) Working Group (FAWG) supporting inclusion of redomestications in the Part D Standards based on their work monitoring troubled and potentially troubled companies. As an example, FAWG has identified situations where companies have sought to take advantage of the redomestication process to achieve regulatory arbitrage. The recommended accreditation guidelines include elements for a quality review of these transactions as well as communication requirements with other regulators. Subject to Recommendation A or B In 2016, The Working Group together with the Group Solvency Issues (E) Working Group redesigned the Form A Database to enhance regulatory reviews and provide a more dynamic regulatory tool. The database now captures more information regarding mergers, acquisitions, consolidated hearings and/or coordinated reviews of Form A filings. The Form A is reviewed and analyzed by the state in which the Form A is filed, and the appropriate action is taken by the state to either approve or disapprove the transaction within a specified time frame. Making this information available to regulators in each state via the Form A Database provides awareness of other similar transactions such as a large insurer initiating acquisitions in numerous states or denials/issues with filings from the same ultimate controlling party. The database can also lead to efficiencies in analyzing similar transactions using the Lead State concept incorporated into the database. To fully realize the regulatory value the Form A Database can provide, all states must effectively use the database for each applicable transaction. The Working Group recommends subjecting the Part D accreditation guidelines to a Recommendation A or B as defined in the accreditation manual to ensure a complete database of information. In the primary application process for new companies, other states may not immediately rely on the work done by the domiciliary state, but as soon as the insurer begins requesting licenses in other states, heavy reliance is placed on the initial application process done by the domiciliary state. In the primary application process for redomestications, other states rely on the new domestic regulator as discussed above. Therefore, primary applications for new companies and redomestications, in addition to Form A filings, are equally important and should be encompassed in the Recommendation A or B for the entirety of Part D. A statement and explanation of how the potential standard is directly related to solvency surveillance and why the proposal should be included in the standards: The purpose of subjecting primary licensing, redomestications and mergers/acquisitions to Recommendation A or B is to ensure that states have effective processes in place that other states may rely on when these functions are performed. A quality review of each filing includes assessing the financial solvency of the company to ensure the interests of the policyholders are met. These filings promote interstate communication and coordination, which are key elements of effective solvency regulation and an area of increased focused as holding company assessments, supervisory colleges and other coordinated efforts increase the effectiveness of regulation. In addition, the Form A Database provides a system to communicate whether any similar or related Form A has been approved, denied or withdrawn from another state. The purpose of this database is to: 1) facilitate the communication of actions taken by the states on all Form A filings; and 2) facilitate the coordination of Form A reviews in an attempt to avoid the duplication of regulatory processes via a Web-based application. This database will assist insurance regulators by producing a streamlined regulatory process that maintains the integrity of state holding company laws, while being responsive to a dynamic and evolving industry.

Attachment Five

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A statement as to why ultimate adoption by every jurisdiction may be desirable: States place significant reliance on the work of another state’s review and approval/denial of a primary application for a new company or redomestication or a Form A filing. Elements within the standard such as review of items submitted by the company along with communication between states enhance the system of state-based regulation. Reliance is most effective when states have comfort that other states are in compliance with the minimum uniform standards. In addition to increasing the uniformity of review, the updated guidelines are designed to enhance the value of the Form A Database. As of December 2018, a substantial number of Form A filings had not been updated in over a year, likely due to delays outside the state’s control. The revised guidelines will require a status update in the Form A Database at least once every six months. With more current information available, states have more tools to avoid fraudulent or questionable acquisitions that could lead to insolvency of an insurer. A statement as to the number of jurisdictions that have adopted and implemented the proposal or a similar proposal and their experience to date: Part D initially became effective for accreditation in 2012 as an “unscored” section of the accreditation program. This meant that a state could not fail accreditation based solely on the lack of compliance with these standards. If deficiencies were noted, the review team would provide management comments to the state insurance department, requesting the state to consider improvements as needed, but Part D would not factor into a state’s accredited status. Because state’s have been subject to this section since 2012, there is already a base level of compliance. Including the standards in the review team’s recommendation appropriately elevates the importance of the reliance placed on these processes. Note: The accreditation program moved from a scoring system to a recommendation system effective January 1, 2017. A statement as to the provisions needed to meet the minimum requirements of the standard: Revised standards and guidelines for Part D are attached.

Attachment Five

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14

2018 National Association of Insurance Commissioners

National Treatment and Coordination (E) Working Group Company Licensing Proposal Form

DATE: 11/26/2018

CONTACT PERSON: Crystal Brown

TELEPHONE: 816-783-8146

EMAIL ADDRESS: [email protected]

ON BEHALF OF: OH Dept. of Insurance

NAME: Cameron Piatt

TITLE: Chair, BTPR Subgroup

AFFILIATION:

ADDRESS:

FOR NAIC USE ONLY

Agenda Item # 2018-09

Year 2019

DISPOSITION

[ ] ADOPTED

[ ] REJECTED

[ ] DEFERRED TO

[ ] REFERRED TO OTHER NAIC GROUP

[ ] EXPOSED

[ ] OTHER (SPECIFY)

IDENTIFICATION OF SOURCE AND FORM(S)/INSTRUCTIONS TO BE CHANGED

[ X] UCAA Forms [ ] UCAA Instructions [ x ] Company Licensing Best Practices Hand Book[ ] Enhancement to the Electronic Application ProcessForms:[ ] Form 1 – Checklist [ ] Form 2 - Application [ ] Form 3 – Lines of Business [ ] Form 6- Certificate of Compliance [ ] Form 7 – Certificate of Deposit [ ] Form 8 - Questionnaire

[ ] Form 8C- Corporate Amendment Questionnaire [ x ] Form 11-Biographical Affidavit [ ] Form 12-Uniform Consent to Service of Process [ ] Form 13- ProForma [ ] Form 14- Change of Address/Contact Notification [ ] Form 15 – Affidavit of Lost C of A [ ] Form 16 – Voluntary Dissolution [ ] Form 17 – Statement of Withdrawal

DESCRIPTION OF CHANGE(S) Add language to Q15 on the Biographical Affidavit for those officers, directors, etc. employed by the holding company to include the group code.

Add language to the Company Licensing Best Practices Handbook for Biographical Affidavit to include the group code for affiants employed by the holding company and regulators to review I-SITE, the internet and other regulatory tools for condition of the subsidiary. (These changes would be reflected in the primary, expansion and corporate amendment best practices.)

REASON OR JUSTIFICATION FOR CHANGE **

Concerns were raised regarding regulators receiving all of the necessary information for reviewing officers, directors, etc. who work for a holding company. The proposed changes will provide regulators with more information when doing their review of the affiant of a holding company. This information would not be verified by the third-party vendor but would be reviewed by the regulators.

Additional Staff Comments: 11/26/18 cgb The SG agreed to refer to the proposal to NTCWG for exposure.

___________________________________________________________________________________________________

Attachment Six

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BIOGRAPHICAL AFFIDAVIT

15. To your knowledge has any company or entity (including entities controlled by the holding company) for which youwere an officer or director, trustee, investment committee member, key management employee or controllingstockholder, had any of the following events occur while you served in such capacity? If employed at the holdingcompany level provide the group code.

a. Been refused a permit, license, or certificate of authority by any regulatory authority, or governmental-licensing agency?

Yes No

b. Had its permit, license, or certificate of authority suspended, revoked, canceled, non-renewed, or subjectedto any judicial, administrative, regulatory, or disciplinary action (including rehabilitation, liquidation,receivership, conservatorship, federal bankruptcy proceeding, state insolvency, supervision or any othersimilar proceeding)?

Yes No

c. Been placed on probation or had a fine levied against it or against its permit, license, or certificate ofauthority in any civil, criminal, administrative, regulatory, or disciplinary action?

Yes No

If the answer to any of the above is yes, please indicate and give details. When responding to questions (b) and (c), affiant should also include any events within twelve (12) months after his or her departure from the entity. ______

___________________________________________________________________________________________

___________________________________________________________________________________________

Note: If an affiant has any doubt about the accuracy of an answer, the question should be answered in the positive and an explanation provided.


Attachment Six

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NAIC Company Licensing Best Practices Handbook Best Practices: Application Review

Primary Application

Analysis of Current Condition

Note: Generally, the scope of the analysis of current condition would depend on the risk prioritization of the Applicant Company. With a primary application (not a redomestication):

i. If it is a stand-alone company, there is no information upon which to establish a riskprioritization and the use of that technique is inapplicable.

ii. However, if the Applicant Company is part of a holding company structure, the reviewermay want to consider the strengths, structure, ratings, etc. of the holding company.

Application Instruction Items

Item 13. NAIC Biographical Affidavits • These documents are used to perform a background check (if required by the state) to

evaluate the suitability, competency, character and integrity of those persons ultimatelyresponsible for the operations of the insurer. Persons to be reviewed are the controllingowners, officers, directors and key managerial personnel with the ultimate authority overthe financial and operational decisions of the insurer, such as the chief executive officer(CEO), chief operating officer (COO), chief financial officer (CFO), secretary, chiefmarketing officer and treasurer. Affiants employed at the holding company level shouldprovide the group code.

• Regulators should review I-SITE+site (and other including rRegulatory toolsActions),internet searches, and )any other regulatory tools available to gain a better understandingof the applicant and its holding company, subsidiaries and even specific individuals. forthe condition of subsidiaries under the holding company.

• Independent third-party background reports are used to identify discrepancies in thebiographical affidavit and evaluate the suitability of the controlling owners, officers,directors or key managerial personnel of the Applicant Company and competency toperform the responsibilities of the position held with the company. Issues regardingcompetency, character and integrity may be self-evident from the information provided inthe affidavit or may be determined from the related background review or criminalbackground check.

o Regulators will review the comparison of information provided on thebiographical affidavit and the results of the independent third-party backgroundreports.

o Regulators will note any discrepancies found in the independent third-partybackground reports and follow up with the Applicant Company.

o Any key concerns will be addressed with the Applicant Company.

Fingerprint data, if available, can be used to validate the identity of personnel and check for criminal background. Information in the biographical affidavit can then be utilized to verify employment and educational background.


Attachment Six

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18



DATE: 1-4-19

CONTACT PERSON: Jane Barr

TELEPHONE:


ON BEHALF OF:

NAME:

TITLE:

AFFILIATION:

ADDRESS:

FOR NAIC USE ONLY


Year 2019

DISPOSITION

[ ] ADOPTED

[ ] REJECTED

[ ] DEFERRED TO


[ ] EXPOSED

[ ] OTHER (SPECIFY)


[ X ] UCAA Forms [ X ] UCAA Instructions [ ] Enhancement to the Electronic Application Process [ ] Company Licensing Best Practices HB Forms: [ ] Form 1 – Checklist [ ] Form 2 - Application [ ] Form 3 – Lines of Business [ ] Form 6- Certificate of Compliance [ ] Form 7 – Certificate of Deposit [ ] Form 8 - Questionnaire

[ ] Form 8C- Corporate Amendment Questionnaire [ ] Form 11-Biographical Affidavit [ ] Form 12-Uniform Consent to Service of Process [ ] Form 13- ProForma [ X ] Form 14- Change of Address/Contact Notification [ ] Form 15 – Affidavit of Lost C of A [ ] Form 16 – Voluntary Dissolution [ ] Form 17 – Statement of Withdrawal

DESCRIPTION OF CHANGE(S)

Remove the state table from page 2 of Form 14 – Change of Address/Contact Notification. Add a footnote to the Corporate Amendment Filling Fee Matrix for those states that have state specific forms.

REASON OR JUSTIFICATION FOR CHANGE ** To eliminate confusion on whether this field is information only or if it should be completed if filing in hard copy.

Additional Staff Comments:

___________________________________________________________________________________________________ ** This section must be completed on all forms. Revised 01-2019

Attachment Seven

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Applicant Company Name: NAIC No. _________________________ FEIN: __________________________

Revised 4/08/19 © 2019 National Association of Insurance Commissioners 1 FORM 14

Uniform Certificate of Authority Application (UCAA) CHANGE OF MAILING ADDRESS/CONTACT NOTIFICATION FORM

NAME CHANGE If there has been a name change, please complete the following: Previous Applicant Company Name: ______________________________________________________________________ Current Applicant Company Name: ______________________________________________________________________ MAILING ADDRESS/CONTACT CHANGE If there has been a mailing address or contact person change, please complete the following: This form will notify regulatory officials of mailing address changes or contact person changes applicable to the Applicant Company or it may be completed as a supplemental filing in conjunction with other corporate amendment filings. Additional corporate amendment filings are required for Statutory Home Office, changes to articles or by-laws or for changes in the addresses related to the person authorized to receive Service of Process. These changes require a Corporate Amendment Application or a Uniform Consent to Service of Process. Check state specific requirements. For each change, please indicate the one or more areas for which the change is applicable:

Catastrophe/Disaster Coordination Contact A contact person for state departments to contact for information if there is a catastrophe or disaster.

Claim Information Contact A contact person for the public to contact for claim information. A toll free or instate number is required.

Consumer Complaints Contact A contact person for state consumer complaint staff to contact for resolution of complaints filed with the state department. A toll free or instate number is required.

External Healthcare Review Contact A contact person for state departments to initiate the external healthcare review process.

Form and/or Rate Filings Contact A person for state departments to contact regarding issues on policy forms filings or rate filings.

Fraud Assessment Invoice Contact A person for state departments to contact regarding issues of payment of fraud assessments.

Local Office in Domestic/Foreign State Contact A person for the public or state departments to contact. Managing General Agent A person for the public or state departments to contact. Market Conduct Contact A person for state departments to contact regarding market

conduct issues. Policyholder Information Contact A person for the public to contact. A toll free or instate

number is required. Producer Licensing Contact (Appointment) A person for state departments to contact regarding issues of

producer licensing or appointments of agents. Regulatory Compliance/Government Relations

Contact A person for state departments to contact on matters related to regulation but unrelated to public complaints filed with the state department.)

Premium Tax Contact A person for state departments to contact regarding issues of payment of premium tax.

Company Licenses/Fees Contact A person for state departments to contact regarding issues of payment of license fees.

Deposits Contact A person for state departments to contact regarding statutory deposits.

U.S. Legal Counsel (for aliens) A person for state departments to contact. Annual Statement Contact A contact person responsible for answering questions in the

completion of the annual statement. Company Mailing Address A change to the mailing address of the company.

Attachment Seven

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Applicant Company Name: NAIC No. _________________________ FEIN: __________________________

Revised 4/08/19 © 2019 National Association of Insurance Commissioners 2 FORM 14

:This notice is for all states; OR this notice is for the following state(s) onlyآ

GA آ FL آ DC آ DE آ CO CT آ CA آ AR آ AZ آ AS آ AK آ AL آ MA آ MD آ ME آ LA آ KY آ KS آ IA آ IN آ IL آ ID آ HI آ GU آ NC آ NY آ NM آ NJ آ NH آ *NV آ NE آ MT آ MO آ MS آ MN آ MI آ UT آ TX آ SD TN آ SC آ RI آ PR آ PA آ OR آ OK آ OH آ ND آ WY آ WI آ WV آ WA آ VA آ VI آ VT آ

* State-Specific Form required NEW CONTACT Contact Name: _______________________________________________________________________________________ Title: ______________________________________________________________________________________________ Address: ___________________________________________________________________________________________ Phone #: _________________ Fax #: _______________________ Toll Free/Instate Phone #:________________________ E-Mail Address: ___________________________________________________________________________________ Previous Contact Name (if changed): _____________________________________________________________________ Entity Name of MGA (if contact or address changed): _______________________________________________________ Note: If there are multiple contacts in different locations, please attach a separate sheet with all pertinent information for

each. NEW MAILING ADDRESS Address: ____________________________________________________________________________________________ Address 2: ________________________________________________ Suite/Mail Stop: ____________________________ City: ______________________________________ State: _______________________ Zip Code: __________________ Email: __________________________________________________ Toll Free/Instate Phone #: _____________________ Main Administrative Office Phone Number: ________________________________ Fax: _________________________

Signature of Preparer Date of Preparation Typed or Printed Name Title of Preparer Phone Number of Preparer Email Address of Preparer

Attachment Seven

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© 2018 National Association of Insurance Commissioners 1 09/13/2018

Corporate Amendment Change Types - Filing Fee Matrix

Corporate Amendment Change Types- Filing Fees Required at time of submission (Yes, No or No Fee/ Required to File) Updates to the state-specific information will be noted with a “” next to the state name. Retaliatory State (must submit greater amount with application)

State Adding

LOBs Deleting LOBs

Name Change

Redomesti-cation

Change of Statutory Home Office Address

Change of Address/ Contact Notification

Merger of Two or More Foreign Insurers

Change of Control of Foreign Insurer

Amended Bylaws

Amended Articles of Incorp.

Statement of Withdrawal

Requirements Citation of Statute or Regulation

NV *Yes, $295 or Retaliatory

Yes, $10 or Retaliatory




No ¥ Yes, $10 or Retaliatory

No Fee/ Req’d to File

Yes, $10 or Retaliatory**

Yes, $10 or Retaliatory**

No *If currently holds only one line, $295 for additional lines. If currently holds more than two lines, $10 fee **unless filed with an original application for a Cof A. ¥ NV requires their state specific form be filed for address changes.

NRS 680B.010 Fees

¥ = “State Specific Form”

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DATE:

CONTACT PERSON: Jane Barr

TELEPHONE:


ON BEHALF OF: National Treatment & Coordination WG

NAME:

TITLE:

AFFILIATION:

ADDRESS:

FOR NAIC USE ONLY


Year 2019

DISPOSITION

[ ] ADOPTED

[ ] REJECTED

[ ] DEFERRED TO


[ ] EXPOSED

[ ] OTHER (SPECIFY)


[ ] UCAA Forms [X ] UCAA Instructions [ ] Enhancement to the Electronic Application Process [ ] Company Licensing Best Practices HB Forms: [ ] Form 1 – Checklist [ ] Form 2 - Application [ ] Form 3 – Lines of Business [ ] Form 6- Certificate of Compliance [ ] Form 7 – Certificate of Deposit [ ] Form 8 - Questionnaire

[ ] Form 8C- Corporate Amendment Questionnaire [ ] Form 11-Biographical Affidavit [ ] Form 12-Uniform Consent to Service of Process [ ] Form 13- ProForma [ ] Form 14- Change of Address/Contact Notification [ ] Form 15 – Affidavit of Lost C of A [ ] Form 16 – Voluntary Dissolution [ ] Form 17 – Statement of Withdrawal

DESCRIPTION OF CHANGE(S) Remove pdf for form 16a (entity) and 16b (risk retention groups) instructions and incorporate both instructions into the corporate amendment instructions to be consistent with other corporate amendment change types and stand-alone applications.

REASON OR JUSTIFICATION FOR CHANGE **

To keep the instructions consistent for all corporate amendment type applications, by placing the instructions with all other instructions that can be downloaded from the website.

Additional Staff Comments:

___________________________________________________________________________________________________ ** This section must be completed on all forms. Revised 01-2019

Attachment Eight

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CORPORATE AMENDMENTS APPLICATION

Detail Eliminated To Conserve Space

The UCAA Corporate Amendment Application has twelve change types (sections) designed to guide the Applicant Company through the licensing process. Each section and filing requirement item is noted on the Application Checklist (Form 1C); I. Adding and/or Deleting Lines of Business Filing Requirements II. Name Change Filing Requirements III. Redomestication of a Foreign Insurer Filing Requirements IV. Change of Statutory Home Office Address Filing Requirements V. Merger of Two or More Foreign Insurers VI. Proposed/Completed Change of Control of Foreign Insurers VII. Amended Articles of Incorporation VIII. Amended Bylaws IX. Change of Address/Contact Notification Filing Requirement X. Statement of Withdrawal/Complete Surrender of Certificate of Authority Application XI. Voluntary Dissolution XII. Amended Uniform Consent to Service of Process

Corporate Amendments Application Section XI

Detail Eliminated To Conserve Space Filing Requirements (Statement of Voluntary Dissolution) This section provides a guide to understanding the purpose of completing the statement of voluntary dissolution. This courtesy filing does not require approval but should be provided when the Applicant Company is exiting the marketplace. This form is also available for Risk Retention Group (RRG) registrations. This form should be completed by those reporting entities that are ending their existence in all states. The Applicant Company should complete Form 16a or 16b and submit to the domicile state when requesting dissolution or cancellation of the Certificate of Authority and may also be requested by non-domiciliary states when requesting cancellation of the foreign Certificate of Authority. The purpose of the form is to provide information about the status of all foreign Certificates of Authority and any obligations that are still present in those states. The Applicant Company should complete Form 16 and submit to its domiciliary state as a notification that the Applicant Company has surrendered its Certificate of Authority in the non-domiciliary states where it held a license to transact. Table of Contents /Filing Requirements/Column 1. List state(s) where certificate of authority has been held. 2.Provide the date of approval Approval date for the surrender of the Certificate of Authority. 32. Report any pPolicyholder obligations or contingent liabilities.

Attachment Eight

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43. Report the sStatus of premium taxes, fees and other monetary obligations to the foreign state. 54. Report any sState deposits, amount and purpose. Please read the instructions provided under the UCAA Forms Section under Corporate Amendment applications tab. 1 Certificate of Authority has been held from the states listed below: List each state from which the entity has held a certificate of authority during the last 10 years. Include states where a certificate of authority had been issued and surrendered within the 10-year period. For Risk Retention Groups-list each state from which the entity has registered during the last 10 years. Include states where a registration had been issued and surrendered within the 10-year period. 2 Approval date of surrender of Certificate of Authority by state Report the date that the state department of insurance approved the surrender or cancellation of the Certificate of Authority in that state. For Risk Retention Groups – report the date of registration cancellation by state. 3 Policyholder obligations or contingent liabilities Report any kind of obligation that exists on the date of the signature on this form which is related to the policies or contracts issued by the entity or RRG. Include claim obligations, loss adjustment expenses, involuntary reinsurance pool obligations and any other unpaid charges that arise from policies or contracts written in that state or that are expected to arise from the policy or contract activities of the entity or RRG in that state. Estimate the amount if the actual amount is not known. 4 Premium taxes, fees and other monetary obligations owed to the foreign state Report any other obligations that exist on the date of the signature on this form. Include taxes, fees, assessments, creditor obligations and any other unpaid charges that arise from that state or that are expected to arise from the operations of the entity or RRG in that state. Estimate the amount if the actual amount is not known. 5 State Deposit Report the amount of any statutory or regulatory deposit that exists in the state on the date of the signature on this form. Explain the reason for the deposit, if known.

Attachment Eight

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