Key Takeaways from the US NAIC Summer 2022 National Meeting: Restructuring Mechanisms, Insurance Business Transfers and Corporate Splits – Reinsurance | Business Insurance

know about this Key Takeaways from the US NAIC Summer 2022 National Meeting: Restructuring Mechanisms, Insurance Business Transfers and Corporate Splits – Reinsurance

in complete details.

To print this article, all you need to do is register or log in to

On August 11, 2022, the Executive Committee (EX) of the U.S. National Association of Insurance Commissioners (“NAIC”) adopted a request from the Restructuring Mechanisms (E) Working Group (“Working Group RM”) to reopen the Model Law of the Property and Casualty Insurance Guarantee Association (#540) (“Model Law #540”) for amendment to ensure that policyholders retain guarantee fund coverage following an insurance business transfer (“IBT”) or corporate division (“CD”). For more information on IBTs and CDs, see “Insurance Business Transfers and Corporate Splits Gain Strength” in the Mayer Brown Global Insurance Industry Year in Review 2021.

The reopening of Model Law #540 is part of the NAIC’s broader initiative to consider expanding the US regulatory framework regarding IBTs and CDs. In 2019, the NAIC commissioned the RM Task Force to explore best practice and consumer protection standards for IBTs and CDs drawing on knowledge and experience of the well-developed UK Part VII transfer regime as well as of the few US states that currently have IBT. or DC legislation.

Last year, the RM Working Group issued a white paper exploring the IBT and DC landscape in both the United States and the United Kingdom and tasked the Restructuring Mechanisms (E) Subgroup (“RM Subgroup”) to establish recommendations regarding the states’ adoption of IBT and CD legislation. On May 4, 2022, the RM Subgroup met virtually to discuss a draft of their “Founding Principlesdocument, which contains a series of best practices for US CD and IBT transactions.

See also  Pet Insurance Marketplace 2022 – InsuranceNewsNet

Neither the RM Working Group nor the RM Subgroup met during the NAIC 2022 National Summer Meeting. We understand that both the draft white paper prepared by the RM Working Group and the draft Core Principles document prepared by The RM Subgroup received a significant number of comments, which are being further reviewed and considered by the RM Working Group and the RM Subgroup. There are no publicly announced next steps at this time regarding those two documents or the work of the RM Working Group and the RM Subgroup.

Visit us at

Mayer Brown is a global provider of legal services comprising legal practices that are separate entities (the “Mayer Brown Practices”). The Mayer Brown practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability companies established in Illinois, USA; Mayer Brown International LLP, a limited liability company incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales under number OC 303359); Mayer Brown, SELAS established in France; Mayer Brown JSM, a Hong Kong company and its associated entities in Asia; and Tauil & Checker Advogados, a Brazilian law firm with which Mayer Brown is associated. “Mayer Brown” and the Mayer Brown logo are trademarks of Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Practices of Mayer Brown. All rights reserved.

This Mayer Brown article provides information and commentary on legal issues and developments of interest. The foregoing is not a complete treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed in this document.

POPULAR ARTICLES ABOUT: United States Insurance

See also  Why insurance companies can't be left behind in digital | Business Insurance

Cyber ​​insurance experiencing ‘future shock’

Freeman Mathis and Gary

The idea of ​​”Future Shock” (that an accelerated rate of change causes social and psychological upheaval) dates back to Alvin Toffler’s 1970 book of the same name.

US insurance regulators ask: What is a ‘bonus’?

Kramer Levin Naftalis & Frankel LLP

Regulation of the solvency of insurance companies is a key pillar of insurance law throughout the world, and in the United States no less than elsewhere. In the state regulatory system of the United States…