An Express Article from the California Land Title Association
Bulletin 11/12-12 - July 25, 2011
The NAIC recently updated the NAIC Insurance Holding Company System Regulatory Model Act. The staff of the California Senate Committee on Insurance plans to draft amendments to California law to fit the new NAIC Model into California’s existing Insurance Code provisions.
Some minor changes may fit with existing law while other new substantive provisions will require greater consideration and discussion. The goal is to put the changes into legislation by early fall so that the changes can be reviewed and discussed in 2012. To view a redlined version of the Model Act with the proposed NAIC changes please click here.
Legislative deadlines require any legislation to pass the Senate by the end of January. Legislation could then be considered in the Assembly. Much of the work on other insurance legislation is well-advanced, allowing the Committee to now focus on the Holding Company Act.
A major proposed change includes the definition of Enterprise Risk and the annual reporting of enterprise risk. Other changes include provisions on corporate governance, the authorization of a Supervisory College for regulators, and new filing requirements for a divestiture of a controlling interest prior to cessation of control.