D.C. Mun. Regs. tit. 26, r. 26-A2512

Current through Register 71, No. 45, November 7, 2024

Rule 26-A2512 - FILING PROCEDURES

2512.1

An insurer, or the insurance group of which the insurer is a member, required to file a CGAD by the Act, shall, no later than June 1 of each calendar year, submit to the Commissioner a CGAD that contains the information described in section 2513 of this chapter.

2512.2

The CGAD shall include a signature of the insurer's or insurance group's chief executive officer or corporate secretary attesting to the best of that individual's belief and knowledge that:

(a) The insurer or insurance group has implemented a corporate governance practice that complies with these rules; and

(b) A copy of the CGAD has been provided to the insurer's or insurance group's Board of Directors ("Board") or the appropriate committee thereof.

2512.3

The insurer or insurance group shall have discretion regarding the appropriate format for providing the information required by these regulations and may customize the CGAD to provide the most relevant information necessary to permit the Commissioner to gain an understanding of the corporate governance structure, policies and practices utilized by the insurer or insurance group.

2512.4

For purposes of completing the CGAD, the insurer or insurance group shall consider the following in determining how to report its governance activities:

(a) The insurer or insurance group may provide information on governance activities that occur at the ultimate controlling parent level, an intermediate holding company level or the individual legal entity level, depending upon how the insurer or insurance group has structured its system of corporate governance;

(b) In complying with paragraph (a) of this subsection, it is recommended that the insurer or insurance evaluate where:

(1) The insurer's or insurance group's risk appetite is determined;

(2) The earnings, capital, liquidity, operations, and reputation of the insurer are overseen collectively and the supervision of these factors are coordinated and exercised; and

(3) The legal liability for failure of general corporate governance duties would be placed; and

(c) The insurer or insurance group shall indicate in its CGAD what criteria was used to determine the level of reporting and explain any subsequent changes in level of reporting.

2512.5

Notwithstanding § 2512.1, and as outlined in section 4 of the Act, if the CGAD is completed at the insurance group level, then it shall be filed with the lead state of the group as determined by the procedures outlined in the most recent Financial Analysis Handbook adopted by the National Association of Insurance Commissioners ("NAIC"). In these instances, a copy of the CGAD shall be provided to the chief regulatory official of any state in which the insurance group has a domestic insurer, upon request.

2512.6

An insurer or insurance group may comply with this section by referencing other existing documents (e.g., Own Risk Solvency Assessment Summary Report, Holding Company Form B or F Filings, Securities and Exchange Commission (SEC) Proxy Statements, or foreign regulatory reporting requirements) if the documents provide information that is comparable to the information described in section 2513 of this chapter. The insurer or insurance group shall clearly reference the location of the relevant information within the CGAD and attach the referenced document if it is not already filed or available to the regulator.

2512.7

Each year following the initial filing of the CGAD, the insurer or insurance group shall file an amended version of the previously filed CGAD indicating where changes have been made. The filing should state whether or not changes were made in the information or activities reported by the insurer or insurance group.

2512.8

The review of the CGAD and any additional requests for information shall be made through the lead state as determined by the current NAIC Financial Analysis Handbook.

D.C. Mun. Regs. tit. 26, r. 26-A2512

Final Rulemaking published at 69 DCR 1865 (3/11/2022)