National
Association of
Insurance
Commissioners
Regulation of Voluntary
Underwriting and
Reinsurance Pools
White Paper
© Copyright 2003 by National Association of Insurance Commissioners
All rights reserved.
ISBN 0-89382-958-7
National Association of Insurance Commissioners
Insurance Products & Services Division
816-783-8300
Fax 816-460-7593
www.naic.org/insprod
prodserv@naic.org
Printed in the United States of America
No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic
or mechanical, including photocopying, recording, or any storage or retrieval system, without written permission from the
NAIC.
Executive Headquarters
2301 McGee Street, Suite 800
Kansas City, MO 64108-2662
816-842-3600
Securities Valuation Office
1411 Broadway, 9th Floor
New York, NY 10018-3402
212-398-9000
Federal & International Relations
Hall of States Bldg.
444 North Capitol NW, Suite 701
Washington, DC 20001-1509
202-624-7790
Draft: 11/27/02
Adopted by Financial Condition (E) Committee
REGULATION OF VOLUNTARY UNDERWRITING AND REINSURANCE
POOLS WHITE PAPER
INTRODUCTION ...................................................................................................................................................... 1
HISTORY OF VOLUNTARY UNDERWRITING AND REINSURANCE POOLS ........................................... 2
Life Pools.................................................................................................................................................................. 2
Accident and Health Pools........................................................................................................................................ 2
Property and Casualty Pools ..................................................................................................................................... 4
MANAGEMENT OF VOLUNTARY UNDERWRITING AND REINSURANCE POOLS ............................... 6
Underwriting Agreements......................................................................................................................................... 6
Pool Membership...................................................................................................................................................... 7
Fronting Company .................................................................................................................................................... 7
Reporting and Inspection .......................................................................................................................................... 8
Fee Structures ........................................................................................................................................................... 8
Retrocessions ............................................................................................................................................................ 9
Underwriting Expertise and Guidelines.................................................................................................................... 9
Claims Adjudication ................................................................................................................................................. 9
Actuarial Support.................................................................................................................................................... 10
STATE LAWS GOVERNING UNDERWRITING AND REINSURANCE POOLS......................................... 11
NAIC LISTING OF ALL POOLS AND ASSOCIATIONS.................................................................................. 13
STATUTORY ACCOUNTING AND REPORTING REQUIREMENTS........................................................... 14
RECOMMENDATIONS.......................................................................................................................................... 15
EXHIBIT A – State Chart Regarding Status of NAIC Property and Casualty Model Rating Law ................. 19
EXHIBIT B – NAIC Listing of Pools as of December 13, 2001 ............................................................................ 24
EXHIBIT C – NAIC Request for Alien Insurer Identification Number.............................................................. 33
EXHIBIT D – SSAP No. 63 – Underwriting Pools and Associations Including Intercompany Pools ............... 34
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
INTRODUCTION
The Underwriting and Reinsurance Pools Working Group (Working Group) was formed in September,
1999, as a result of a number of issues arising from the operation of the Unicover Occupational Accident
Pool (Unicover), including:
underwriting losses sustained
questions about licensing authority
adequacy of current model laws and regulations with respect to the operation of pools
reporting and disclosure of workers’ compensation carve-out business reinsured by a life insurer
risk-based capital implications
The 2000 charge assigned to the Working Group was as follows:
The Underwriting and Reinsurance Pools Working Group will perform a comprehensive analysis and
evaluation of workers’ compensation carve-out business and the operations of underwriting pools and
associations, their impact on the insurance and reinsurance marketplace and the extent that current
statutory authority may have to be revised to ensure adequate and effective oversight.
This Report specifically addresses and provides recommendations as to the Working Group’s position
on the following subissues identified in the 2000 charge:
1.
Evaluate how pools’ financial condition is monitored and consider whether changes are needed.
Questions to be considered include:
a.
b.
c.
d.
e.
2.
How is the adequacy of reserves determined?
Are actuarial opinions required for pools?
Are pools examined by states?
Are pools required to have a CPA audit?
Do pools file financial statements (statement blank) with anyone?
Is the accounting guidance for pools within the Accounting Practices and Procedures Manual,
effective January 1, 2001, adequate?
The Interested Parties of the Underwriting and Reinsurance Pools Working Group provided the
information presented in the History and Management sections of this report, in part.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
1
HISTORY OF VOLUNTARY UNDERWRITING AND REINSURANCE POOLS
Underwriting and reinsurance pools and associations can be categorized as follows:
(a) involuntary, (b) voluntary and (c) intercompany.
a.
Involuntary pools and associations represent a mechanism employed by states to provide
insurance coverage to those with expected higher than average probability of loss who
otherwise would be excluded from obtaining coverage. Reporting entities are generally
required to participate in the underwriting results, including premiums, losses, expenses,
and other operations of involuntary pools, based on their proportionate share of similar
business written in the state. Involuntary plans are also referred to as residual market
plans, involuntary risk pools and mandatory pools.
b.
Voluntary pools and associations are similar to involuntary pools except they are not state
mandated and a reporting entity participates in the pool voluntarily. In addition, voluntary
pools are not limited to the provision of insurance coverage to those with higher than
average probability of loss, but often are used to provide greater capacity for risks with
exceptionally high levels of insurable values (e.g., aircraft, nuclear power plants,
refineries and offshore drilling platforms).
c.
Intercompany pooling relates to business, which is pooled among affiliated entities that
are party to an intercompany reinsurance and pooling arrangement.
Although life companies utilize voluntary pools for catastrophe claims today, participation by accident
and health and the property and casualty insurance companies is more prevalent, and therefore the
primary focus of this report.
Life Pools
Voluntary life pools existed in the 1970s and 1980s to reinsure jumbo or large face amount life policies.
The arrangement was usually coinsurance among a group of unaffiliated companies taking a
predetermined percentage of the remaining risk above the ceding company’s retention. One type of life
pool that is currently being utilized is the catastrophic assessment pool. In these pools, a group of life
companies join together to spread the disproportional effects of a catastrophe equitably among the
member companies. In these pools there are no premiums, reserves, underwriters, actuarial opinions,
etc. Catastrophic claims in excess of a deductible are assessed to the various members. Assessments are
payable directly to the claiming company. The administrator of the pools determines the equitable
sharing mechanism and handles the assessment process. Given their assessment nature, these types of
pools are not the focus of this report or its recommendations. At this time, reinsurance pools are used
infrequently, if at all, in the life insurance industry.
Accident and Health Pools
Although several states have established statutory high-risk health insurance pools and/or small
employer health pools, most accident and health pools can be classified as voluntary. With the advent of
jumbo jets in the mid-1960s, it became evident that the existing capacity routinely provided through
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
2
reinsurance from Lloyd’s syndicates, would be insufficient to respond to the additional demands of the
marketplace. Two experienced reinsurance underwriters, one with a background in aviation and the
other in accident and health, saw an opportunity resulting from this market development and
collaborated to develop the first accident and health reinsurance pool in the United States.
Instead of soliciting support from individuals willing to commit their own personal wealth, domestic life
and health insurance companies were approached to provide reinsurance capacity because of the
combined strength of the member companies’ capital and surplus. In addition, reinsurance premium that
historically had gone overseas was recaptured for the domestic marketplace.
Initially, the types of business reinsured were generally accident-related, such as business travel accident
programs, life catastrophe covers, seat accident on corporate owned aircraft, payroll deducted voluntary
accident programs, war risk hazards, hazardous occupations and/or avocations, etc. The underlying
products provided a fixed and/or a specific scheduled benefit amount in the event of an accidental death,
dismemberment or other permanent disability that resulted from a covered event/loss. Reinsurance was
provided on both a treaty and facultative basis, either as excess of loss or quota share. In addition to
accessing new markets without the customary start-up costs, a member company could limit its
liabilities by selecting a level of participation commensurate with its appetite for risk.
Later, the reinsurance on medical business was added to the portfolio of products offered by these pools.
The opportunity was created by the dramatic increase in inflation trends, cost shifting, the introduction
of HMO options, utilization and medical technology advances that caused many employers to seek
alternative funding arrangements with which many insurers were unfamiliar and needed assistance in
responding to the market. Accident and health pools provided reinsurance on medical plans that were
self-funded by the employer on a specific per person/per year basis and on an aggregate maximum
policy year loss excess basis. Reinsurance of other medical coverages, some on a first dollar basis, was
later introduced by accident and health pools.
Accident and health reinsurance pools participated in the reinsurance of concentration exposures under
certain workers’ compensation contracts as early as the 1970s (i.e., helicopter and crew boat exposures
to offshore oilrigs and platforms in the Gulf of Mexico and elsewhere). In the mid-1980s, the workers’
compensation carve-out1 product was more formally introduced. This product was developed in
response to the “global” unbundling of property and casualty treaties because of a hardening market,
higher prices, reduced capacity and a general concern over accumulation of exposures. The original
purpose of this product was to supply additional capacity needed for catastrophic workers’
compensation exposures since life and health reinsurers were not susceptible to catastrophic property
loss resulting from natural disasters as were their property and casualty counterparts. Attachment points
were lowered over time as the experience of life and health reinsurers grew.
It was not until the late 1970s that several accident and health reinsurance pools were established.
Growth in this area was generated by market demand as well as the substantial profit margins in these
lucrative arrangements. Pool managers formed new facilities covering the same classes of business. In
some instances, companies already participating in a pool wanted to increase their participation; in
others, new pools were created to make provision for new members and/or to accommodate classes of
business that would be best managed separately.
1
Workers’ compensation carve-out business is defined as reinsurance (including retrocessional reinsurance) assumed by life
and health insurers of medical, wage loss and death benefits of the occupational illness and accident exposures, but not the
employers liability exposures, of business originally written as workers’ compensation insurance. [NAIC Workers’
Compensation Carve-Out Business White Paper dated June 12, 2001]
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
3
Pool managers controlled the process. At meetings held by pool managers, only very general
information about the business written by the pool was routinely provided to pool members. In some
instances, these meetings may have included information on market conditions, retro covers purchased
on behalf of the pool membership, new products, reserving methodology, significant industry events,
etc.
In the very early days of accident and health pools, managers generally did not solicit input from
members, and audits were strongly discouraged or never encouraged. Often pool members did not
exhibit any real interest in having more involvement in the management of the pools in which they
participated, other than attending annual meetings. Generally, a potential pool member chose to
participate based on its comfort level with the pool’s “management style.”
Some of the participating companies recognized the profit potential of this business and chose to enter
the marketplace as independent reinsurers by setting up separate departments or divisions while often
retaining their existing pool participations. Companies were able to take a more significant share of
placements but, in many instances, were competing against themselves on a given account. As more
companies and pools entered the accident and health reinsurance arena, competition became fierce. The
excess capacity created a buyers’ market and drove pricing downward while at the same time
broadening contract terms and conditions.
As profit margins began to decline and pool members became more knowledgeable about the business
being written, there was a gradual increase in their involvement in pool management. Over time,
member companies turned their attention to underwriting, claims adjudication and adequacy of reserves.
More recently, there has been a move toward reinsurance underwriting managers writing on behalf of a
single company. In some instances, a company required partial ownership of the reinsurance
underwriting manager. Most of the pool managers who remain in business today have been involved in
this marketplace for a long time and view the increased involvement and due diligence conducted by
member companies as a way to protect the integrity of the business environment.
In the history of accident and health reinsurance, there may have been as many as several dozen pools
managed by a dozen or so pool managers representing several hundred million of per occurrence
capacity. These numbers have diminished in recent years with a series of adverse market situations, not
the least of which was the Unicover debacle. The recent events have heightened regulatory concern and
industry criticism of the pool managers. Much of the insurance industry was affected by this situation in
one way or another. Although Unicover was not managed as a traditional accident and health
reinsurance pool, but rather a workers’ compensation pool, the events surrounding this situation have
had a significant impact on accident and health reinsurance pools. Member companies began to
withdraw from pool participation therefore greatly diminishing the capacity of these pools. Many pools
are currently in runoff and many pool managers no longer exist.
Property and Casualty Pools
There are several types of voluntary industry pools, many of which are created because one insurer is
unable to assume the significant exposures inherent to the industry or contract. Two examples of such
exposures are the aviation and nuclear industries.
There are several large aviation pools. One was formed in 1929 and has been an affiliate of a Londonbased aviation insurance pool since 2000. It offers aviation insurance as well as support for various
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
4
aviation activities and industries. It employs approximately 240 people, specializing in airline, products
liability and general aviation classes of business. It provides expertise in underwriting, claims servicing
and support functions such as data processing, accounting, reinsurance, legal counsel, and safety and
engineering. This pool underwrites aviation business on behalf of eight insurers that are severally liable
for their participation share in the pool. These insurers have combined premiums of over $140 billion
and combined assets of over $900 billion. Generally, coverage is issued on a syndicate basis: the
policies are issued on a subscription basis by the U.S. admitted insurers, and then non-admitted members
of the pool receive their respective participation shares through a reinsurance allocation.
There are also nuclear pools. One was formed in 1957, when Congress enacted the Price-Anderson Act
to encourage the commercial development of nuclear energy. This pool offers protection against nuclear
incidents to commercial nuclear power plants and other nuclear facilities. There are currently 44
member companies, all domiciled within the U.S. and each with a specific share of the pool. The pool
operates under a constitution, which is signed by all members, as well as general rules. Each member
must have at least an A- rating from A.M. Best and at least $50 million in policyholder surplus and is
limited to no more than 15 percent of the pool. In addition to the Board, there are committees that
address underwriting, finance, claims, audit, engineering and security issues. Twenty-five of the
members subscribe on the policies and internal reinsurance reallocates the premiums and obligations to
the 44 members.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
5
MANAGEMENT OF VOLUNTARY UNDERWRITING AND REINSURANCE POOLS
The concepts underlying this section are applicable to both accident and health and property and
casualty voluntary pools, although the nomenclature is specific to accident and health business.
Underwriting Agreements
All aspects of pool management are generally outlined in a contract known as a participation agreement
or underwriting management agreement. Agreements were initially written in the fashion of a treaty
contract and could range from two or three pages to more than 30 pages. The purpose of the agreement
is to outline the responsibilities of the pool manager as well as the pool participants or pool members.
Every facet of reinsurance management is addressed in this agreement (e.g., types or lines of business
permitted to be written; classes of business specifically excluded; dollar limits both on a per person basis
and a per occurrence or aggregate basis; premium and loss payments; allowances; profit commission
formulas; reports and remittances; termination provisions; arbitration provisions). However, with the
exception of classes of business that could and or could not be written and limits of authority, the
agreement generally provides the pool managers with a very broad authority.
According to many of these agreements, the pool manager can exercise broad discretion as to production
and solicitation of business, underwriting (including the development of rating guidelines and manuals),
contract issuance, administration and accounting, claims adjudication (including establishing case
reserves, conducting audits, negotiating settlements and commutations, participating in arbitrations and
managing disputes), ceded retrocessions, establishing IBNR, etc. The agreements are specific with
regard to the fiduciary responsibility of the underwriting manager to pool members. Generally these
agreements are written on a continuous basis, subject to the termination provision of the agreement.
Each year the configuration of the pool may change, but the underlying management agreement
generally does not.
Most agreements include a provision for a “working” fund or “loss” fund for each agreement year. This
provision allows for a cash balance to be maintained by the pool manager to have sufficient funds in
order to settle claims between reporting periods. If funds are utilized in full or in part during one
reporting period, they are immediately replenished in the next. In the event there are insufficient funds to
cover losses in any given reporting period, the management agreements generally allow for a 'cash call'
which member companies are required to respond to in a specified period of time (usually 10 working
days or less). From time to time, it may be necessary to adjust these loss funds (up or down) depending
on loss activity to avoid cash calls. Interest earned on these funds is generally credited to the member
companies. Agreements will often address how funds may be invested.
Generally, these participation/management agreements provided for the establishment of an “advisory”
committee that would consist of a subset of the general pool membership. Usually, those members that
participated in advisory committees were companies that had the largest shares or percentages of the
pool’s capacity, or those that had personnel who were knowledgeable of the business being written by
pool management. Advisory committee members, by and large, are nominated by the pool manager
and approved by the general membership. These committee members are called upon to provide input
to pool managers on such subjects as review of underwriting practices or rating guidelines, to assist in
the development or at least endorse reserving methodology, to participate in the selection criteria of new
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
6
member companies or other significant items related to the operation of the pool.
Participation/management agreements may or may not have a specific provision for audits of the pool
manager by members; however, if audits were conducted they were in large part conducted by the
advisory committee or by a member company appointed by the advisory committee.
Some pools did not have an advisory committee per se, but rather several subcommittees that were
responsible for specific functions, such as claims, underwriting, reserve methodology or auditing to
name a few.
Today, some pools have boards of directors and active committees whose members constitute a
significant portion of the pools’ membership. In such instances, the boards and committees may be
more than advisory in nature and may have significant decision-making authority for the pools.
General pool membership had very few rights or responsibilities under the agreement, other than the
obligation to accept liability for risks attaching to this agreement and the resulting profit or loss. Pool
members could increase or decrease their share or percentage of participation in the pool capacity from
year to year, or choose to depart from the pool entirely, but the advisory committee decided any
significant issues. Today, general membership has a voice in the overall management of pools; however
their suggestions are usually funneled through the appointed advisory committee or subcommittee.
Pool Membership
The structure of the pool was developed in one of two ways. First, a pool manager may have
determined what capacity (either on a per person basis and/or per occurrence/aggregate basis) he or she
would require to effectively market and solicit business. Companies would then be solicited for
participation as a percent of this dollar amount.
The second way would be for a pool manager to solicit company participation based on the maximum
dollar amount that the companies would feel appropriate to commit. The total of all these dollar lines
would be equal to the total capacity of the pool. Percentages would then be assigned by the particular
dollar amount that a company had committed to as a function of the total capacity.
In most instances reinsurance pools’ member obligations were several not joint, meaning that pool
members were not responsible for the share of another company should that company become insolvent
and unable to pay claims.
Fronting Company
In the past, “pool paper” was an acceptable form of security (i.e., signing contracts on behalf of the
named pool). However, some ceding companies were concerned with the idea of a “several not joint”
arrangement and therefore specifically requested that there be an issuing company in front of the pool to
eliminate issues related to an insolvency of a member company. As time went on, this request was more
routinely made.
In response to this demand in the market place most, if not all pools, established a separate agreement
with one of the member companies or a group of member companies to become the issuing carrier for
the total pool membership. The criteria for selection of the issuing company varied from pool to pool,
however the size of an issuing company’s capital and surplus and its industry rating were critical factors.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
7
In some arrangements, reinsurance contracts were signed on behalf of the issuing carrier and then
retroceded in their entirety to the pool membership of which they were a participant. In other
arrangements, the issuing carrier would retain a portion of the assumed risk and retrocede the balance to
the pool membership as retrocessionaires. The amount of involvement by the issuing carrier in placing
the retrocessional capacity behind them varied from one situation to another. The underwriting manager
did not always orchestrate these arrangements: in some situations the issuing carrier made the
arrangements and in other situations a broker was appointed to do so. In fact, there are arrangements in
which the reinsurance underwriting manager acts only in the capacity of production and underwriting for
the issuing carrier. In these cases, the issuing carrier provides all operational support.
The issuing carrier, acting only in the capacity of a front company, would receive a fronting fee for the
utilization of its paper and for the risk attached to covering the potential insolvencies of the member
companies behind them. Further, there are certain arrangements in which the issuing carrier has
ownership of the underwriting manager, in full or in part.
Reporting and Inspection
In general, the reporting by pool managers to pool members is generated quarterly on a cash basis and
on an underwriting basis, although some produce reports on a monthly basis. Information provided in
these reports can range from very basic data such as gross written premium, expenses, paid losses,
incurred losses and IBNR to a detailed bordereau of specific account information both bound and
quoted.
Carriers report that in contrast to the earlier years of reinsurance underwriting management, participating
companies are now active at every level of pool management, and the frequency and depth of audits and
inspections have increased dramatically. Arrangements with reinsurance underwriting managers in
general have more defined structures, and more stringent terms and conditions in the management
agreements. The premium, losses, expenses, etc., are reflected in the accounts and annual statements of
the pools’ members. (See, for example, SSAP No. 63, Summary Conclusion 8.) It has generally been
deemed unnecessary to have the pool complete a statutory annual statement, actuarial certification or
audited financial statements because these occur at the insurance company pool member level.
Reporting at the pool level was considered duplicative because: 1) the member companies assume the
risk simultaneously with the execution of the insurance policy; 2) the pool is not the risk-taker; and 3)
each member records its share of the pool experience.
Fee Structures
In some cases, pool managers are compensated in two ways. The fee level, which is set to cover the pool
manager’s basic operating expenses, is agreed to by the pool manager and pool members. Some
management fees are variable up to a certain maximum (applied by the underwriting manager on a caseby- case- basis), while others are on a sliding scale.
The second facet of their compensation takes the form of a profit commission. The formula is calculated
as a percent of profit and generally includes a provision for a deficit carry-forward. In other words, if
any given year produces a negative result, this deficit is carried forward into the calculation of profit in
subsequent agreement years. Most deficit carry-forward provisions are limited to three years, but some
are unlimited.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
8
The purpose of this two-pronged approach to pool managers’ compensation is to provide sufficient
capital to cover basic operating expenses, with the real opportunity for income and growth that exists in
producing profitable results, thereby maintaining appropriate incentives.
Although not normally a substantial source of revenue, some management agreements also allow for
pool managers to earn interest income on the balance of premiums held during the period of time when
premiums are paid by clients to the underwriting manager and the date payments are remitted to member
companies in the next reporting period.
Retrocessions
Decisions regarding retrocessional markets are usually made jointly by the pool members and the pool
manager). The decisions are largely based on the size (i.e., premium volume) of the pool, the types of
business written, the mix of business, etc. To the extent possible, pool managers attempted to address
the collective comfort level of member companies and their appetite for risk retention. Some pool
managers were very conservative and purchased reinsurance on an account basis, either facultatively or
by a cession treaty in addition to cat covers, while others purchased only catastrophe covers.
Furthermore, as with many insurance companies, market conditions were often a key factor in the
selection of attachment points and occurrence limits of catastrophe covers.
Decisions related to the selection, including criteria for selection, of retrocessional markets and
acceptable security are, in large part, left to the member companies or issuing carrier. This evaluation
would include ratio tests, industry ratings, amount of capital and surplus, or other factors deemed
essential by member companies or issuing carriers.
Underwriting Expertise and Guidelines
Although the expertise of the underwriting staff can vary, most reinsurance underwriting managers
establish specific authority levels for their individual underwriters commensurate with that person’s
level of experience. These thresholds can be triggered by premium volume, attachment level, per person
limit, per occurrence limit, type of risk, class of business, or any specified combination of these or
similar factors. Most reinsurance underwriting managers now also require multiple sign-off or
underwriting committee approval for risks exceeding a given threshold.
Underwriting guidelines and manuals may be created internally or by information purchased from
outside actuarial firms. In some situations, the member companies will participate in developing
underwriting manuals. Depending on the specific product line, sophisticated computer pricing models
are available. These manuals and pricing models are updated on a regular basis or more often as the
need arises.
Claims Adjudication
As previously indicated, management agreements ordinarily give broad authority with regard to claims
adjudication. This would include, but not be limited to, establishing case reserves, negotiating
settlements and commutations, participating in arbitrations and managing disputes. Member company
input is minimal, except at the invitation of the underwriting manager, in extraordinary circumstances or
perhaps in developing an overall claims philosophy. This, of course is not the case in every situation. In
fact, one source advised that in its agreement, it was the issuing carrier’s responsibility to handle all
issues relating to litigation and arbitration.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
9
Most reinsurance underwriting managers have experienced claims personnel on staff. The size of their
claim department is dependent on the volume and type of business they write. However, managers will
from time to time utilize outside claim services when necessary.
As with underwriting, claim managers establish specific authority levels commensurate with a particular
claim adjuster’s level of experience. The type of claim, the amount of the claim, the specifics of the
claim or any particular combination of these factors can trigger these thresholds. Some claims may
require multiple sign-off and underwriter approval.
A regular schedule of claim audits is generally maintained. Depending on the specific account,
underwriting staff may accompany claims personnel to conduct these audits. Most underwriting
managers have automated systems in place to make proper recoveries under retrocessional agreements.
Actuarial Support
Initially, pool managers used the services of outside actuaries almost exclusively. As the management
of pools became more sophisticated, the need for dedicated actuarial services became apparent. Larger
reinsurance underwriting managers have actuaries on staff, while smaller operations utilize the actuarial
services of the member companies.
The scope of the services provided by these actuaries to reinsurance underwriting managers has
expanded over the years and now includes: working with the underwriting department to establish
manuals and rating guidelines; assisting in determining the adequacy of case reserves; developing IBNR
claim reserving methodologies and formulae, performing statistical studies and developing mathematical
processes for pricing; and performing claim lag studies, to name a few of their functions. Some
agreements, however, do require a final sign-off on IBNR reserves by the issuing carrier or a committee
chosen by pool membership.
The role of actuaries on staff at reinsurance underwriting managers has more recently expanded into
marketing, as well. It is generally believed to be very beneficial to have actuaries interact with
underwriters at every level. In reality, actuaries have by and large become involved in every aspect of
reinsurance underwriting management.
Reinsurance underwriting managers continue to use outside actuarial services for the purchase of
industry data to assist in the development of rate manuals. Contracts with outside services would
include regular periodic updates of statistical data, notification of material changes in data, and other
information necessary in maintaining sound underwriting and pricing guidelines.
Many reinsurance underwriting managers solicit input from member companies’ actuaries when the
need arises.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
10
STATE LAWS GOVERNING UNDERWRITING and REINSURANCE POOLS
The NAIC has developed a model law specific to property and casualty insurers that establishes some
statutory requirements for joint underwriting pools and associations. However, there is no NAIC model
law applicable to life or accident and health pools.
The Property and Casualty Model Rating Law (Model Law) provides authority for the establishment of
both voluntary and involuntary property and casualty underwriting and reinsurance pools and requires
information supporting the formation or modification of a pool to be filed with the regulator. This
Model Law also provides for examination authority, but does not establish any specific reporting
requirements. No solvency standards apply directly to pools, as they are business ventures of the
participating insurers. The pool itself may or may not be profitable, and adverse experience only raises
solvency concerns from a regulatory perspective to the extent that it has an impact on the financial
condition of one or more participating insurers.
The relevant provisions of the Model Law are as follows2:
Section 2. Definitions
I.
“Joint underwriting,” means a voluntary arrangement established to provide insurance coverage for a risk
pursuant to which two (2) or more insurers jointly contract with the insured at a price and under policy terms
agreed upon between the insurers.
Section 17. Joint Underwriting, Joint Reinsurance Pool and Residual Market Activities
A.
Notwithstanding Section 12B(1), insurers participating in joint underwriting, joint reinsurance pools or
residual market mechanisms may in connection with such activity act in cooperation with each other in the making
of rates, rating systems, policy forms, underwriting rules, surveys, inspections and investigations, the furnishing of
loss and expense statistics or other information, or carrying on research. Joint underwriting, joint reinsurance
pools and residual market mechanisms shall not be deemed advisory organizations.
B.
Except to the extent modified by this section, insurers, joint underwriting, joint reinsurance pool and
residual market mechanism activities are subject to the other provisions of this Act.
C.
If, after hearing, the commissioner finds that any activity or practice of an insurer participating in joint
underwriting or a pool is unfair, is unreasonable, will tend to lessen competition in any market or is otherwise
inconsistent with the provisions or purposes of this Act, the commissioner may issue a written order and require
the discontinuance of such activity or practice.
D.
Every pool shall file with the commissioner a copy of its constitution; its articles of incorporation,
agreement or association; its bylaws, rules and regulations governing its activities; its members; the name and
address of a resident of this State upon whom notices or orders of the commissioner or process may be served;
and any changes in amendments or changes in the foregoing.
E.
Any residual market mechanism, plan or agreement to implement such a mechanism, and any changes
or amendments thereto, shall be submitted in writing to the commissioner for consideration and approval, together
2
The NAIC has adopted two versions of the Property and Casualty Model Rating Law. The language reproduced here is
from the File and Use Version. The corresponding provisions of the Prior Approval Version,§§ 2(F), 14, and 15, are
substantially similar, except that the definition of joint underwriting is expressly limited to commercial risks.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
11
with such information as may be reasonably required. The commissioner shall approve only such agreements as
are found to contemplate: (i) the use of rates that meet the standards prescribed by this Act, and (ii) activities and
practices that are not unfair, unreasonable or otherwise inconsistent with the provisions of this Act. At any time
after such agreements are in effect, the commissioner may review the practices and activities of the adherents to
such agreements and if, after a hearing, the commissioner finds that any such practice or activity is unfair or
unreasonable, or is otherwise inconsistent with the provisions of this Act, the commissioner may issue a written
order to the parties and either require the discontinuance of such acts or revoke approval of any such agreement.
Section 18. Examinations
The commissioner may, as often as he or she may deem it expedient, make or cause to be made an examination
of each advisory organization or statistical agent referred to in Section 11 and of each group, association or other
organization referred to in Section 17, provided that each statistical agent and advisory organization licensed in
this state shall be examined at least once every five (5) years. The reasonable costs of any such examination
shall be paid by the advisory organization, statistical agent or group, association or other organization examined.
The officers, manager, agents and employees of such advisory organization, statistical agent, or group,
association or other organization may be examined at any time under oath and shall exhibit all books, records,
accounts, documents or agreements governing its method of operation. In lieu of any such examination, the
commissioner may accept the report of an examination made by the insurance supervisory official of another
state, pursuant to the laws of that state.
Exhibit A provides a detailed listing of the status of this Model Law in each state.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
12
NAIC LISTING OF ALL POOLS AND ASSOCIATIONS
The NAIC maintains a numerical listing of all pools and associations in the Listing of Companies (see
Exhibit B) for purposes of Annual Statement reporting. In order to report transactions involving pools
or associations consisting of non-affiliated companies correctly, an insurer must include in Schedule F
(Property and Casualty companies) or Schedule S (Life & Health companies) the appropriate
Pool/Association Identification Number.
The report is categorized by “type” as follows based upon the information provided to the NAIC on the
application:
INVOLUNTARY:
State Auto Pools
State FAIR Plans
State Coastal Plans
State WC Plans
State Mine Subsidence Plans
Other Public Entity Pools
High Risk WC Reinsurance Pools
VOLUNTARY:
National Insurance Programs
Illinois Insurance Exchange
New York Insurance Exchange
Insurance Exchange of the Americas
Alien Pools
Industry Pools/Associations
In order to be included in the Listing of Companies, the pool must complete an application (see Exhibit
C for example of application) and file a copy of the Certificate of Authority. Although the form is titled
“Request for Alien Identification Number,” insurers use it for pools. No other compliance or due
diligence functions are performed by the NAIC for voluntary pools.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
13
STATUTORY ACCOUNTING AND REPORTING REQUIREMENTS
SSAP No. 63–Underwriting Pools and Associations Including Intercompany Pools (see Exhibit D for a
copy of SSAP No. 63) establishes the statutory accounting principles for underwriting pools and
associations. SSAP No. 63 is a “common area” pronouncement; therefore all reporting entities including
property/casualty, life/accident and health insurers must follow the accounting and reporting guidance
provided therein. The scope of SSAP No. 63 includes underwriting pools and associations categorized
as involuntary, voluntary or intercompany. SSAP No. 63 requires the following accounting treatment:
8.
Underwriting results shall be accounted for on a gross basis whereby the participant’s portion of
premiums, losses, expenses, and other operations of the pools are recorded separately in the financial
statements rather than netted against each other. Premiums and losses shall be recorded as direct,
assumed, and/or ceded as applicable. If the reporting entity is a direct writer of the business, premiums
shall be recorded as directly written and accounted for in the same manner as other business, which is
directly written by the entity. To the extent that premium is ceded to a pool, premiums and losses shall be
recorded in the same manner as any other reinsurance arrangement. A reporting entity that is a member
of a pool shall record its participation in the pool as assumed business as in any other reinsurance
arrangement.
SSAP No. 63 requires the following disclosures. These are included as part of Annual Statement Note
#25 to the Notes to Financial Statements:
10.
If a reporting entity is part of a group of affiliated entities which utilizes a pooling arrangement
under which the pool participants cede substantially all of their direct and assumed business to the pool,
the financial statements shall include:
a.
b.
c.
d.
e.
f.
g.
A description of the basic terms of the arrangement and the related accounting;
Identification of the lead entity and of all affiliated entities participating in the
intercompany pool (include NAIC Company Codes) and indication of their respective
percentage shares of the pooled business;
Description of the lines and types of business subject to the pooling agreement;
Description of cessions to non-affiliated reinsurers of business subject to the pooling
agreement, and indication of whether such cessions were prior to or subsequent to the
cession of pooled business from the affiliated pool members to the lead entity;
Identification of all pool members which are parties to reinsurance agreements with nonaffiliated reinsurers covering business subject to the pooling agreement and which have a
contractual right of direct recovery from the non-affiliated reinsurer per the terms of such
reinsurance agreements;
Explanation of any discrepancies between entries regarding pooled business on the
assumed and ceded reinsurance schedules of the lead entity and corresponding entries
on the assumed and ceded reinsurance schedules of other pool participants;
Description of intercompany sharing, if other than in accordance with the pool
participation percentage, of the Provision for Reinsurance (Schedule F, Part 7) and the
write-off of uncollectible reinsurance.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
14
RECOMMENDATIONS
1.
Currently there are several regulatory tools in place to oversee the financial condition operations
of pools and associations. These include state laws governing property and casualty pools,
statutory examination authority over the joint underwriting and joint reinsurance associations and
pools, annual statement disclosure and statutory accounting guidelines. Although several states
have laws establishing high-risk health insurance pools and/or small employer health pools, most
accident and health pools can be classified as voluntary.
The only model law in existence that provides for the oversight of voluntary pools and
associations is the Property and Casualty Model Rating Law. Not all states have adopted the
Model. Several states have statutes that do not include examination authority. Some states may
have examination authority over pools but not exercise it, and if the domiciliary state does not
have the Model Rating Law or the pool is outside its scope, the extent of the examination
authority may be unclear.
In addition, this Model Law is not required under the NAIC Financial Regulation Standards and
Accreditation Program, and does not apply to life or accident and health pools. The Working
Group recommends that each state review its legal framework to determine if it has the requisite
statutory authority to oversee the financial condition of voluntary life, accident and health, and
property and casualty pools and associations. This would include but not be limited to the filing
of periodic financial statements and other documents with respect to corporate governance,
management and pool membership, as well as the authority to perform a financial condition
examination as often as the commissioner deems expedient.
2.
Currently, there is no specific producer licensing requirement for reinsurance underwriting
managers. In some cases, licensure as a reinsurance intermediary may be required, since recent
amendments to the Reinsurance Intermediary Model Act clarify that a pool manager is exempt
“only if the group association, pool or organization of insurers (as distinguished from its
members) is subject to examination by the [Insurance Commissioner] of the state in which the
manager's principal business office is located.”
Although the states must be capable of monitoring pool activity and its impact on the financial
condition of companies that participate in such pools or associations, the Working Group
believes that the major responsibility for oversight and due diligence of initial and continued
participation in a pool lies with the insurance and reinsurance companies involved. The Working
Group recommends that companies that are pool members evaluate their initial and continued
participation based on the criteria listed below on at least an annual basis. Pool members,
however, may consider the due diligence functions performed by other pool members or by
standing committees of pool members established by the governing board for a specific purpose,
e.g., underwriting, claims, reinsurance and audit where appropriate.
Similarly, a ceding company should have an internal process with respect to its reinsurance
program to evaluate cessions into a prospective facility to ensure that the pool is well managed
and consists of financially strong insurers, not only so that the reinsurance will mitigate its loss
exposure but also so that the credit for risks ceded to the pool will be fully allowed.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
15
It is also recommended that the states consider these guidelines as “best practices” for
monitoring and examining companies’ participation in pools. Incorporation of these practices
into an insurer’s internal audit process and a state’s regulatory procedures will provide an
enhanced understanding of the risk in the business being assumed, and establish guidance on
appropriate controls with respect to a company’s prospective participation.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
16
A. Due Diligence
Initial
Review of overall business plans of the underwriting manager
Review of business plan for the specific pool (e.g., target markets, premium projections,
underwriting manual, claim manual)
Review of past performance (where applicable)
Substantiate acceptable level of expertise (resumes of key management personnel)
Personal interviews with key management, underwriting, claims, actuarial, accounting and
administration personnel
Review of financials
Audit of underwriting, claims, finance, accounting and operations. The pool manager may allow
examination of a prior audit, but would probably not allow an audit by a non-member company.
Review reserving methodology
Ensure that proper licensing has been obtained
Ascertain that underwriting manager has purchased appropriate insurance (e.g., E&O; officers
and directors coverage)
Pool manager should meet financial standards acceptable to the pool members or issuing carrier
Ongoing
Audit of underwriting, claims, finance, accounting and operations on a regular basis
Review reserving methodology and adequacy of reserves
Review schedule for client underwriting and claims audits
On site visits to maintain open communication and obtain an ongoing knowledge of business
being transacted, change in personnel, systems, etc.
Formal meetings with all pool members to address significant issues, including projections and
initiatives
Determine if any change in the manager’s overall business plan since inception, changes in
underwriting philosophy, marketing strategy or product mix. Reasons why?
Ensure that proper licensing has been maintained
Ensure that appropriate insurance is maintained (e.g., E&O; officers and directors coverage)
B. Control Measures
-
3.
Purposefully written management agreement
Premium restrictions on an account basis
Premium restrictions on an aggregate basis per agreement year
Management fees on a sliding scale basis or committing a portion of the management fee to risk.
Specific guidelines (e.g., retention’s; limits; lines of business permitted and prohibited, pricing)
Defined authorities and thresholds according to level of experience of underwriting and claims
personnel
Encourage more formal training or education, including industry designations for decision-making
personnel
Require regular review of underwriting and claim manuals and updates when necessary
Provide oversight, or require prior approval, of ceded reinsurance
Provide comprehensive guidelines for security approval on both member companies and
retrocessionaires of the pool
Periodic outside actuarial review of reserving methodology and adequacy of reserves
Establish comprehensive reporting format
Maintain timely reporting
The Working Group strongly suggests that the Life and Health Actuarial Task Force and the
Casualty Actuarial Task Force consider the feasibility of requiring an actuarial opinion with
respect to the pool’s business and access to the actuary’s workpapers as well as the member
companies’ audits and actuarial reviews. It is also recommended that the Life and Health
Actuarial Task Force consider which jurisdiction’s minimum reserving standard should apply if
it recommends that life or accident and health pools and associations be required to file an
actuarial opinion.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
17
4.
The Working Group also recommends that NAIC/AICPA (E) Working Group consider whether
pools and associations should be required to file an independent statutory audit opinion and be
subject to requirements similar to those in the Model Audit Rule, giving appropriate
consideration to the pass-through nature of pools and technical issues such as reconciliation
between fiscal year and calendar year accounting for pools that do not operate on a calendar year
basis.
5.
The Working Group is aware that Risk-Based Capital charges are calculated on a net basis,
flowing through premiums and losses in both the life and property and casualty formulae.
However, it is recommended that both Task Forces review the calculation to determine if an
additional charge is needed when business that arises in a property and casualty company, such
as the workers’ compensation carve-out, is reinsured with a life company or vice versa.
6.
The Working Group recommends that the Statutory Accounting Principles (E) Working Group
review SSAP No. 63, paragraph 10.g., to determine whether Schedule S should be included in
the parenthetical description. Inclusion would eliminate confusion that the disclosure is only
applicable to property and casualty insurers.
7.
The Working Group recommends modernizing the NAIC application process to list pools and
associations and assign identification numbers for Annual Statement reporting of pool
transactions in Schedule F or Schedule S to provide some level of due diligence. Currently an
applicant must complete a form titled “Request for Alien Identification Number” and file a copy
of the Certificate of Authority. Since the states do not have uniform filing requirements for pools
incorporated in their jurisdictions and many do not issue certificates of authority, minimal
information is available for regulatory purposes.
The Working Group does not mean to suggest that the recommendations in this report will prevent
another opportunistic incident that circumvents regulatory oversight. However, the recommended
enhancements to the existing regulatory monitoring process will provide the states with the additional
tools to detect many potential problems. In addition, the heightened awareness of both regulators and
the insurance industry, because of the fallout from the recent Unicover event, should make both
experienced and potential start-up underwriting managers more cautious about entering the arena and
should diminish the incentive to seek a quick financial return without a long term commitment to the
industry and its partners.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
18
EXHIBIT A – State Chart Regarding Status of NAIC Property and Casualty Model Rating Law
NAIC MEMBER
MODEL/SIMILAR LEGIS.
Alabama
Alaska
ALASKA STAT. §§ 21.39.010 to
21.39.070 (1966/1984) [2]
Arizona
ARIZ. REV. STAT. ANN. §§ 20341 to 20-359 (1954/1990) [2, 3]
Arkansas
ARK. STAT. ANN. §§ 23-67-101
to 23-67-122 (1987/1999) [1, 3]
California
RELATED LEGIS./REGS
ALA. CODE §§ 27-13-1 to 27-13105 (1971): Bulletin dated March
15, 1990 [4]
ALASKA ADMIN. CODE tit. 3 §§
29.200 to 29.300 (1992/1993) [4]
ARK. STAT. ANN. §§ 23-67-206
(1987/1999) [5]; 23-79-109
(1959/1999); ARK. INS. RULE &
REG. 23 (1981/1991). [4]
CAL. INS. CODE §§ 1850 to
1858.35 (1947-1988) (Some parts
from 1963 model); See also CAL.
ADMIN. CODE tit. 10 §§ 2641.1 to
2647.1 (1991/1992).
Colorado
COLO. REV. STAT. §§ 10-4-401 to
10-4-418 (1979/2000) [2, 4]
COLO. REV. STAT. §§ 10-4-1401
to 10-4-1404 (1999); COLO.
ADMIN. INS. REG. 5-1-13 (2000)
[5]; COLO. ADMIN. INS. REG. 51-10 (1991) [4]
Connecticut
CONN. GEN. STAT. §§ 38a-663 to
38a-680 (1969/1989) (Commercial
lines) [2, 4]
CONN. GEN. STAT. §§ 38a-684 to
38a-694 (1982) (Personal risk
insurance) [3]; Bulletin PC-8 (1990)
[4]
Delaware
DEL. CODE ANN. Tit. 18 §§ 2501
to 2531 (1953/1963) [2]
DEL. CODE ANN. tit. 19 §§ 2601
to 2623 (1993) (Worker’s Comp.)
[3, 4]; FORM AND RATES
BULLETIN 5 (1990/1992) [4]
District of Columbia
D.C. CODE ANN. §§ 35-1601 to
35-1609; 35-1701 to 35-1710;
(1973).
Florida
FLA. STAT. §§ 627.011 to 627.381
(1982/1990) [4]; FLA. ADMIN.
CODE § 4-170.007 (1990) [4]
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
19
Georgia
GA. CODE ANN. §§ 33-9-1 to 339-38 (1967/1987) [2, 3]
GUAM
Hawaii
DIRECTIVE NO. 90-PC-6 (1990)
[4]; GA. ADMIN. COMP. Ch. 1202-77 (1999)
[5]
GUAM GOVT CODE §§ 43385 to
43387 (1978).
HAWAII REV. STAT. §§ 431:14101 to 431:14-120 (1988/1997) [2,
4]
Idaho
IDAHO CODE §§ 41-1401 to 411441 (1969).
Illinois
Rating law expired 1971; but see
ILL. ADMIN. REG. Tit. 50 § 754
for some filing requirements.
Indiana
IND. CODE §§ 27-1-22-1 to 27-122-24 (1967/1985) [2]
Bulletin 67 (1991) [4]; IND. CODE
§§ 27-1-22-2.5 to 27-1-22-4 (1999)
[5]
Iowa
IOWA CODE §§ 515F.1 to 515F.19
(1990) [2, 3, 4]
See also Directive dated April 6,
1990 [4]
Kansas
KAN. STAT. ANN. §§ 40-951 to
40-967 (1997/1999) [1, 3, 5]
KAN. ADMIN. REGS. 40-3-46 to
40-3-47 (1991) [4]
Kentucky
KY. REV. STAT. §§ 304.13-011 to
304.13-390 (1982/2000) [1, 3, 4]
KY. REV. STAT. § 304.11-020
(1970/2000) [5]
Louisiana
LA. REV. STAT. ANN. §§ 22:1401
to 22:1422 (1979/1984); 22:620
(1999); LA. INS. REG. 72 (2000)
[5]
Maine
ME. REV. STAT. ANN. tit. 24-A
§§ 2301 to 2330 (1970/1991) [2, 4]
ME. REV. STAT. ANN. tit. 24-A §
2412-A (1999) [5]; BULLETIN 241
(1995) [4]
Maryland
MD. ANN. CODE Ins. §§ 11-01 to
11-232 (1945/1997) [2]; 11-301 to
11-344 (1984/1997) [1.3]
MD. ADMIN. CODE §§
31.07.01.01 to 31.07.01.08 (1990)
[4]
Massachusetts
MASS. GEN. LAWS ch. 174A §§ 1
to 19; ch. 175A (1947/1985); §§ 1
to 20 (1947/1983) [2]
BULLETIN SRB-90-5 (1990) [4];
HB 998, SB 4022 pending (1999) to
add [5]
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
20
Michigan
MICH. COMP. LAWS §§ 500.2600
to 500.2674 (1957) (Fire) [2]
Minnesota
MICH. COMP. LAWS §§ 500.2101
to 500.2114 (1979) (Auto and
homeowners); §§ 500.2408 to
500.2484 (1956) (Casualty).
MINN. STAT. §§ 70A.01 to 70A.23
(1969/1987) [3]
Mississippi
MISS. CODE ANN. §§ 83-2-1 to
83-2-31 (1988) [1]
Missouri
MO. REV. STAT. §§ 379.316 to
379.361 (1972/1999) [2, 5]
MO. ADMIN. CODE tit. 20 § 5004.200 (1990) [4]
Montana
MONT. CODE ANN. §§ 33-16-101
to 33-16-405 (1969/1999) [2]
MONT. ADMIN. R. 6.6.3001 to
6.6.3007 (1990) [4]
Nebraska
NEB. REV. STAT. §§ 44-7501 to
44-7535 (2001) [3, 4]; NEB.
ADMIN. R. tit. 210 ch. 73 pending
(2000) [4]
Nevada
NEV. REV. STAT. §§ 686B.010 to
686B.175 (1971/1990) [2]
NEV. ADMIN. CODE §§ 686B.400
to 686B.460 (1990) [4]
New Hampshire
N.H. REV. STAT. §§ 413:1 to
413:10 (1947) (Rating
Organizations); §§ 414:1 414:9
(1947) (Fire and Casualty) [2]
N.H. Admin. CODE INS. 2801.01
to 2801.07 (1990/1992) [4]
New Jersey
N. J. REV. STAT. §§ 17:29AA-1
17:29AA-32 (1982) Commercial
lines [1]
See also. N.J. REV. STAT. §§
17:29A-1 to 17:29A-32
(1944/1950); P.L. 1990 c.8(Fair
Automobile Insurance Reform Act
of 1990) [4 for auto]; N.J. ADMIN.
CODE §§ 11:3-16.1 to 11:13-16.10
(1990) [4 for auto]; §§ 11:13-8.1 to
11:13-8.5 (1993); 11:4-9.1 to 11:49.5 (1995) [4]
New Mexico
N.M. STAT. ANN. §§ 59a-17-1 to
59A-17-35 (1985/1987) [1, 3, 4]
N.M. INS. REGS. Art. 17 Rule 1
(1987) [SCC-87-3-IN] [4]
New York
North Carolina
N.Y. INS. LAWS §§ 2301 to 2344
(1984/1990) [3] See also N.Y.
ADMIN. CODE tit. 11§§ 161.0 to
161.9 (Regulation 129) (1986) on
flex rating.
N.C. STAT. LAWS §§ 58-40-1 to
58-40-140 (1977/1989) [Parts of
1,2]
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
21
N.C. ADMIN. CODE tit. 11 ch. 10
§§ .1601 to .1604 (1991/1992) [4]
North Dakota
N.D. CENT. CODE §§ 26.1-25-01
to 26.1-25-18 (1983/1991) [2, 4]
Bulletin 90-1 (1990) [4]
Ohio
OHIO REV. CODE ANN. §§
3935.01 to 3935.99; 3937.01 to
3997.99 (1947-1948) [2]
Bulletin 91-1 (1991) [4]
Oklahoma
OKLA. STAT. Tit. 36 §§ 901 to
938 (1957/1997) [2]
OKLA. STAT. Tit. 36 §§ 981 to
998 (1999) [3, 5]; OKLA. INS>
REGS. § 570:10-1-3 (1992/1994).
Oregon
OR. REV. STAT. §§ 737.007 to
737.560 (1967-1987); Bulletin INS90-4 (1990) [4]
Pennsylvania
PA. CONS. STAT. §§ 40-65-101 to
40-65-119 (1947/1994); §§ 40-67101 to 40-67-119 (1961/1994) [2]
Puerto Rico
P.R. LAWS ANN. tit. 26 §§ 1201 to
1240 (1979) [2]
Rhode Island
R.I. GEN. LAWS §§ 27-44-1 to 2744-22 (1988) [1, 3] (use for
competitive market); §§ 27-6-1 to
27-6-52; 27-9-1 to 27-9-52
(1948/1993) [2] (Use for noncompetitive market)
South Carolina
S.C. CODE ANN. §§ 38-73-10 to
38-73-1540 (1988/2000) [2, 5]
South Dakota
S.D. CODIFIED LAWS ANN. §§
58-24-1 to 58-24-65 (1966/1990)
[2]
Directive dated July 16, 1990 [4]
Statement of Policy § 120.1 to 120.5
(1993) (Worker’s Comp.) [4]; PA.
CONS. STAT. §§ 40-66-101 to 4066-119 (1998) [5]
R.I. GEN. LAWS §§ 27-7.1-1 to 277.1-25 (1985/1998) (Workers’
compensation); §§ 27-64-1 to 2764-2 (1999) [5]; Bulletin dated April
27, 1990 [4]
Bulletin 94-3 (1994) [4]
Tennessee
TENN.CODE ANN. §§ 56-5-301 to
56-5-318 (1983).
Texas
TEX. INS. CODE ANN. art. 5.01 to
5.54 (1951/1993).
Utah
UTAH CODE ANN. §§ 31A-19a101to 31A-19a-210 (1986/1999)
[3]; UTAH INS. REG. R590-140
(1990/2000) and Bulletin 90-6
(1990) [4]
Vermont
VT. STAT. ANN. tit. 8 §§ 4681 to
4708 (1984/1990) [1, 3]
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
22
Bulletin 99 (1990) [4]
Virgin Islands
NO ACTION TO DATE
Virginia
VA. CODE §§ 38.2-1900 to 38.22027 (1986/2000) [3, 4, 5]; Admin.
Letters 1990-5, 1993-10 [4]
Washington
WASH. REV. CODE ANN. §§
48.19.010 to 48.19.440
(1947/1983); WASH. ADMIN.
CODE R. §§ 284-24-010 to 284-24100 (1982/1990) [4]
West Virginia
W. VA. CODE §§ 33-20-1 to 3320-16 (1957/1986) [2]
West Virginia Informational Letter
No. 68 (1990) [4]
Wisconsin
WIS. STAT. §§ 625.01 to 625.35
(1969/1979) [1]
Bulletin dated June 11, 1990 [4]
Wyoming
WYO. STAT. §§ 26-14-101 to 2614-118 (1983/1988) [1, 3]
[1] Similar to competitive rating model; found at p. 775-1.
[2] Similar to prior approval model; found at p. 780-1.
[3] Distinguishes between competitive and non-competitive market.
[4] Includes provisions regarding filing of advisory rates based on loss costs.
[5] Commercial lines re-engineering.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
23
EXHIBIT B – NAIC Listing of Pools as of December 13, 2001
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
STATE AUTOMOBILE POOLS
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
ALABAMA COMMERCIAL AUTO INS PROCEDURE
ALABAMA
AA-9991100
ALASKA SERVICING CARRIER PROGRAM
ALASKA
AA-9991101
ARIZONA COMMERCIAL AUTO INS PROCEDURE
ARIZONA
AA-9991102
AA-9991103
ARKANSAS COMMERCIAL AUTO INS PROCEDURE
ARKANSAS
ARKANSAS SPECIAL RISK PROGRAM
ARKANSAS
AA-9991104
CALIFORNIA COMMERCIAL AUTO INS PROCEDURE
CALIFORNIA
AA-9991105
CALIFORNIA SPECIAL RISK PROGRAM
CALIFORNIA
AA-9991106
COLORADO COMMERCIAL AUTO INS PROCEDURE
COLORADO
AA-9991107
CONNECTICUT COMMERCIAL AUTO INS PROCEDURE CONNECTICUT
AA-9991108
CONNECTICUT SPECIAL RISK PROGRAM
CONNECTICUT
AA-9991109
DELAWARE COMMERCIAL AUTO INS PROCEDURE
DELAWARE
AA-9991110
FLORIDA JOINT UNDERWRITING ASSN
FLORIDA
AA-9991111
GEORGIA COMMERCIAL AUTO INS PROCEDURE
GEORGIA
AA-9991112
HAWAII JOINT UNDERWRITING PROGRAM
HAWAII
AA-9991113
AA-9991114
IDAHO COMMERCIAL AUTO INS PROCEDURE
IDAHO
ILLINOIS COMMERCIAL AUTO INS PROCEDURE
ILLINOIS
AA-9991115
ILLINOIS SPECIAL RISK PROGRAM
ILLINOIS
AA-9991116
INDIANA COMMERCIAL AUTO INS PROCEDURE
INDIANA
AA-9991117
IOWA COMMERCIAL AUTO INS PROCEDURE
IOWA
AA-9991118
KANSAS COMMERCIAL AUTO INS PROCEDURE
KANSAS
AA-9991119
KENTUCKY COMMERCIAL AUTO INS PROCEDURE
KENTUCKY
AA-9991120
LOUISIANA COMMERCIAL AUTO INS PROCEDURE
LOUISANA
AA-9991121
MAINE COMMERCIAL AUTO INS PROCEDURE
MAINE
AA-9991122
MARYLAND INDUSTRY AUTO INS ASSN
MARYLAND
AA-9991123
MICHIGAN AUTO INS PLACEMENT FACILITY
MICHIGAN
AA-9991124
MINNESOTA COMMERCIAL AUTO INS PROCEDURE
MINNESOTA
AA-9991125
MINNESOTA SPECIAL RISK PROGRAM
MINNESOTA
AA-9991126
MISSISSIPPI COMMERCIAL AUTO INS PROCEDURE
MISSISSIPPI
AA-9991127
MISSOURI JOINT UNDERWRITING ASSN
MISSOURI
AA-9991128
MONTANA COMMERCIAL AUTO INS PROCEDURE
MONTANA
AA-9991129
NEBRASKA COMMERCIAL AUTO INS PROCEDURE
NEBRASKA
AA-9991130
NEVADA COMMERCIAL AUTO INS PROCEDURE
NEW HAMPSHIRE AUTO REINS FACILITY (PRIV
PASSENGE
NEW HAMPSHIRE COMMERCIAL AUTO INS
PROCEDURE
NEVADA
AA-9991131
NEW HAMPSHIRE AA-9991132
NEW JERSEY COMMERCIAL AUTO INS PROCEDURE
NEW JERSEY
AA-9991134
NEW JERSEY MARKET TRANSITION FACILITY
NEW JERSEY
AA-9991135
NEW HAMPSHIRE AA-9991133
NEW MEXICO COMMERCIAL AUTO INS PROCEDURE
NEW MEXICO
AA-9991136
NEW YORK SPECIAL RISK DISTRIBUTION PROGRAM
NEW YORK TAXI LIMO POOL(NY PUBLIC AUTO
PROGRAM)
NEW YORK
AA-9991137
NEW YORK
AA-9991138
NORTH CAROLINA REINS FACILITY
NORTH DAKOTA COMMERCIAL AUTO INS
PROCEDURE
NORTH CAROLINA AA-9991139
NORTH DAKOTA
AA-9991140
OHIO COMMERCIAL AUTO INS PROCEDURE
OHIO
AA-9991141
OKLAHOMA COMMERCIAL AUTO INS PROCEDURE
OKLAHOMA
AA-9991142
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
24
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
OREGON COMMERCIAL AUTO INS PROCEDURE
PENNSYLVANIA COMMERCIAL AUTO INS
PROCEDURE
OREGON
AA-9991143
PENNSYLVANIA
AA-9991144
PENNSYLVANIA SPECIAL RISK PROGRAM
PENNSYLVANIA
AA-9991145
RHODE ISLAND COMMERCIAL AUTO INS PROCEDURE RHODE ISLAND
AA-9991146
SOUTH CAROLINA COMMERCIAL AUTO INS
PROCEDURE
SOUTH CAROLINA AA-9991147
STATE FAIR PLANS
SOUTH CAROLINA REINS FACILITY
SOUTH DAKOTA COMMERCIAL AUTO INS
PROCEDURE
SOUTH CAROLINA AA-9991148
SOUTH DAKOTA
AA-9991149
TENNESSEE COMMERCIAL AUTO INS PROCEDURE
TENNESSEE
AA-9991150
UTAH COMMERCIAL AUTO INS PROCEDURE
UTAH
AA-9991151
VERMONT COMMERCIAL AUTO INS PROCEDURE
VERMONT
AA-9991152
VIRGINIA COMMERCIAL AUTO INS PROCEDURE
VIRGINIA
AA-9991153
WASHINGTON COMMERCIAL AUTO INS PROCEDURE WASHINGTON
AA-9991154
WASHINGTON SPECIAL RISK PROGRAM
AA-9991155
WASHINGTON
WEST VIRGINIA COMMERCIAL AUTO INS PROCEDURE WEST VIRGINIA
AA-9991156
WISCONSIN SPECIAL RISK PROGRAM
WISCONSIN
AA-9991157
WYOMING COMMERCIAL AUTO INS PROCEDURE
WYOMING
AA-9991158
MICHIGAN CATASTROPHIC CLAIMS ASSN
NEW JERSEY UNSATISFIED CLAIM AND JUDGMENT
FUND
MICHIGAN
AA-9991159
NEW JERSEY
AA-9991160
COMMONWEALTH AUTOMOBILE REINSURERS
MASSACHUSETTS AA-9991161
NEW JERSEY AUTO INS RISK EXCH(NJ AIRE)
NEW JERSEY
AA-9991162
MINNESOTA ASSIGNED CLAIMS BUREAU
MINNESOTA
AA-9991163
PA POOLED COMMERCIAL ASSIGNMENT PROCEDURE PENNSYLVANIA
AA-9991164
TEXAS AUTOMOBILE INS PLAN(TX ASSIGNED RISK)
AA-9991165
TEXAS
NJ VOLUNTARY PRIVATE PASSENGER AUTO INS POOL NEW YORK
AA-9991166
ARKANSAS FAIR PLAN
ARKANSAS
AA-9991200
CALIFORNIA FAIR PLAN
CALIFORNIA
AA-9991201
CONNECTICUT FAIR PLAN
CONNECTICUT
AA-9991202
DELAWARE FAIR PLAN
AA-9991203
DISTRICT OF COLUMBIA FAIR PLAN
DELAWARE
WASHINGTON,
D.C.
GEORGIA FAIR PLAN
GEORGIA
AA-9991205
ILLINOIS FAIR PLAN
ILLINOIS
AA-9991206
AA-9991204
INDIANA FAIR PLAN
INDIANA
AA-9991207
IOWA FAIR PLAN
IOWA
AA-9991208
KANSAS FAIR PLAN
KANSAS
AA-9991209
KENTUCKY FAIR PLAN
KENTUCKY
AA-9991210
LOUISIANA FAIR PLAN
LOUISIANA
AA-9991211
MARYLAND FAIR PLAN
MARYLAND
AA-9991212
MASSACHUSETTS FAIR PLAN
MASSACHUSETTS AA-9991213
MICHIGAN FAIR PLAN
MICHIGAN
AA-9991214
MINNESOTA FAIR PLAN
MINNESOTA
AA-9991215
MISSISSIPPI FAIR PLAN
MISSISSIPPI
AA-9991216
MISSOURI FAIR PLAN
MISSOURI
AA-9991217
AA-9991218
NEW JERSEY FAIR PLAN
NEW JERSEY
NEW MEXICO FAIR PLAN
NEW MEXICO
AA-9991219
NEW YORK FAIR PLAN
NEW YORK
AA-9991220
NORTH CAROLINA FAIR PLAN
NORTH CAROLINA AA-9991221
OHIO FAIR PLAN
OHIO
AA-9991222
OREGON FAIR PLAN
OREGON
AA-9991223
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
25
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
PENNSYLVANIA FAIR PLAN
PENNSYLVANIA
AA-9991224
RHODE ISLAND FAIR PLAN
RHODE ISLAND
AA-9991225
VIRGINIA FAIR PLAN
VIRGINIA
AA-9991226
WASHINGTON FAIR PLAN
WASHINGTON
AA-9991227
WEST VIRGINIA FAIR PLAN
WEST VIRGINIA
AA-9991228
WISCONSIN
ALABAMA
AA-9991229
AA-9991300
WISCONSIN FAIR PLAN
STATE COASTAL (BEACH AND ALABAMA BEACH PLAN
WINDSTORM) PLANS
FLORIDA WINDSTORM POOL
LOUISIANA BEACH PLAN
MISSISSIPPI BEACH PLAN
NORTH CAROLINA BEACH PLAN
SOUTH CAROLINA BEACH PLAN
TEXAS BEACH PLAN
FLORIDA HURRICANE CATASTROPHE FUND
MISSISSIPPI WINDSTORM UNDERWRITING ASSN
OHIO WINDSTORM REINS POOL
STATE WORKERS' COMP
PLANS
FLORIDA
AA-9991301
LOUISIANA
AA-9991302
MISSISSIPPI
AA-9991303
NORTH CAROLINA AA-9991304
SOUTH CAROLINA AA-9991305
TEXAS
AA-9991306
FLORIDA
AA-9991310
MISSISSIPPI
AA-9991315
OHIO
AA-9991320
ALABAMA WORKERS’ COMP
ALABAMA
AA-9991400
ALASKA WORKERS’ COMP
ALASKA
AA-9991401
ARIZONA WORKERS’ COMP
ARIZONA
AA-9991402
ARKANSAS WORKERS’ COMP
ARKANSAS
AA-9991403
CALIFORNIA WORKERS’ COMP
CALIFORNIA
AA-9991404
COLORADO WORKERS’ COMP
COLORADO
AA-9991405
CONNECTICUT WORKERS’ COMP
CONNECTICUT
AA-9991406
DELAWARE WORKERS’ COMP
AA-9991407
DISTRICT OF COLUMBIA WORKERS’ COMP
DELAWARE
DISTRICT OF
COLUMBIA
AA-9991408
FLORIDA WORKERS’ COMP
FLORIDA
AA-9991409
GEORGIA WORKERS’ COMP
GEORGIA
AA-9991410
HAWAII WORKERS’ COMP
HAWAII
AA-9991411
IDAHO WORKERS’ COMP
IDAHO
AA-9991412
ILLINOIS WORKERS’ COMP
ILLINOIS
AA-9991413
INDIANA WORKERS’ COMP
INDIANA
AA-9991414
IOWA WORKERS’ COMP
IOWA
AA-9991415
KANSAS WORKERS’ COMP
KANSAS
AA-9991416
KENTUCKY WORKERS’ COMP
KENTUCKY
AA-9991417
LOUISIANA WORKERS’ COMP
LOUISIANA
AA-9991418
MAINE WORKERS’ COMP
MAINE
AA-9991419
MARYLAND WORKERS’ COMP
MARYLAND
AA-9991420
MASSACHUSETTS WORKERS’ COMP
MASSACHUSETTS AA-9991421
MICHIGAN WORKERS’ COMP
MICHIGAN
AA-9991422
MINNESOTA WORKERS’ COMP
MINNESOTA
AA-9991423
MISSISSIPPI WORKERS’ COMP
MISSISSIPPI
AA-9991424
MISSOURI WORKERS’ COMP
MISSOURI
AA-9991425
MONTANA WORKERS’ COMP
MONTANA
AA-9991426
NEBRASKA WORKERS’ COMP
NEBRASKA
AA-9991427
AA-9991428
NEVADA WORKERS’ COMP
NEVADA
NEW HAMPSHIRE WORKERS’ COMP
NEW HAMPSHIRE AA-9991429
NEW JERSEY WORKERS’ COMP
NEW JERSEY
AA-9991430
NEW MEXICO WORKERS’ COMP
NEW MEXICO
AA-9991431
NEW YORK WORKERS’ COMP
NEW YORK
AA-9991432
NORTH CAROLINA WORKERS’ COMP
NORTH CAROLINA AA-9991433
NORTH DAKOTA WORKERS’ COMP
NORTH DAKOTA
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
26
AA-9991434
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
STATE MINE SUBSIDENCE
FUNDS
OTHER PUBLIC ENTITY
POOLS
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
OHIO WORKERS’ COMP
OHIO
AA-9991435
OKLAHOMA WORKERS’ COMP
OKLAHOMA
AA-9991436
OREGON WORKERS’ COMP
OREGON
AA-9991437
PENNSYLVANIA WORKERS’ COMP
PENNSYLVANIA
AA-9991438
PUERTO RICO WORKERS’ COMP
PUERTO RICO
AA-9991439
AA-9991440
RHODE ISLAND WORKERS’ COMP
RHODE ISLAND
SOUTH CAROLINA WORKERS’ COMP
SOUTH CAROLINA AA-9991441
SOUTH DAKOTA WORKERS’ COMP
SOUTH DAKOTA
AA-9991442
TENNESSEE WORKERS’ COMP
TENNESSEE
AA-9991443
TEXAS WORKERS’ COMP
TEXAS
AA-9991444
UTAH WORKERS’ COMP
UTAH
AA-9991445
VERMONT WORKERS’ COMP
VERMONT
AA-9991446
VIRGINIA WORKERS’ COMP
VIRGINIA
AA-9991447
WASHINGTON WORKERS’ COMP
WASHINGTON
AA-9991448
WEST VIRGINIA WORKERS’ COMP
WEST VIRGINIA
AA-9991449
WISCONSIN WORKERS’ COMP
WISCONSIN
AA-9991450
WYOMING WORKERS’ COMP
WYOMING
AA-9991451
ILLINOIS MINE SUBSIDENCE FUND
ILLINOIS
AA-9991500
INDIANA MINE SUBSIDENCE FUND
INDIANA
AA-9991501
KENTUCKY MINE SUBSIDENCE FUND
KENTUCKY
AA-9991502
OHIO MINE SUBSIDENCE FUND
OHIO
AA-9991503
TENNESSEE MINE SUBSIDENCE FUND
TENNESSEE
AA-9991504
VIRGINIA MINE SUBSIDENCE FUND
VIRGINIA
AA-9991505
WEST VIRGINIA MINE SUBSIDENCE FUND
WEST VIRGINIA
AA-9991506
ALASKA SMALL EMPLOYER HEALTH REINS PGM
ALASKA
AA-9992000
ARIZONA SMALL EMPLOYER HEALTH REINS PGM
ARIZONA
AA-9992001
CALIFORNIA SMALL EMPLOYER HEALTH REINS PGM CALIFORNIA
AA-9992002
DELAWARE SMALL EMPLOYER HEALTH REINS PGM
DELAWARE
AA-9992003
IDAHO SMALL EMPLOYER HEALTH REINS PGM
IDAHO
AA-9992004
ALLIANCE FOR AFFORDABLE HEALTH CARE
TEXAS
AA-9992005
MARYLAND SMALL EMPLOYER HEALTH REINS PGM
MARYLAND
AA-9992006
MN SMALL EMPLOYER HEALTH REINS PGM
MINNESOTA
AA-9992007
MISSOURI SMALL EMPLOYER HEALTH REINS PGM
MISSOURI
AA-9992008
MONTANA SMALL EMPLOYER HEALTH REINS PGM
MONTANA
AA-9992009
NEBRASKA SMALL EMPLOYER HEALTH REINS PGM
NEBRASKA
AA-9992011
NJ SMALL EMPLOYER HEALTH REINS PGM
NEW JERSEY
AA-9992012
ND SMALL EMPLOYER HEALTH REINS PGM
NORTH DAKOTA
AA-9992013
OK SMALL EMPLOYER HEALTH REINS PGM
OKLAHOMA
AA-9992014
AA-9992015
RI SMALL EMPLOYER HEALTH REINS PGM
RHODE ISLAND
SC SMALL EMPLOYER HEALTH REINS PGM
SOUTH CAROLINA AA-9992016
TEXAS SMALL EMPLOYER HEALTH REINS PGM
THE COLORADO SMALL EMPLOYER HEALTH REINS
PROGRAM
TEXAS
COLORADO
AA-9992019
COLORADO SCHOOL DISTRICTS SIF
COLORADO
AA-9992020
AA-9992017
ALABAMA DIV OF RISK MGMT
ALABAMA
AA-9992021
GEORGIA DIV OF RISK MGMT SERVICES
GEORGIA
AA-9992022
IRFFNC INTERLOCAL RISK FINANCING FUND OF NC NORTH CAROLINA AA-9992025
ERISA EMPLOYERS RETIREMENT INCOME SECURITY
FLORIDA
AA-9992030
ACT
FLORIDA SMALL EMPLOYER HEALTH REINS
PROGRAM
FLORIDA
AA-9992034
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
27
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
FLORIDA MUNICIPAL LIAB SELF INSURERS PROGRA
FLORIDA
AA-9992035
IOWA SMALL EMPLOYER HEALTH REINS PROGRAM
KANSAS SMALL EMPLOYER HEALTH REINS
PROGRAM
CONNECTICUT
AA-9992037
CONNECTICUT
AA-9992041
MA SMALL EMPLOYER HEALTH REINS PLAN
MASSACHUSETTS AA-9992045
MASSACHUSETTS CRIME INS PROGRAM
MASSACHUSETTS AA-9992046
MN HEALTH COVERAGE REINS ASSN
MMRMA MICHIGAN MUNICIPAL RISK MGMT
AUTHORITY
CONNECTICUT
MICHIGAN
AA-9992052
MISSISSIPPI INS UNDERWRITING ASSN
MISSISSIPPI
AA-9992054
MISSISSIPPI RURAL RISK UNDERWRITING ASSN
MISSISSIPPI
AA-9992055
NC SMALL EMPLOYER HEALTH REINS POOL
NORTH CAROLINA AA-9992056
NATIONAL ASSN FOR SELF EMPLOYED
TEXAS
OHIO SMALL EMPLOYER HEALTH REINS PROGRAM
OHIO
AA-9992058
NEW JERSEY CRIME IND PLAN
AA-9992059
OVERSEAS PRIVATE INVESTMENT CORP(OPIC)
NEW JERSEY
DISTRICT OF
COLUMBIA
OHIO INS OPEN ENROLLMENT REINS PROGRAM
OHIO
AA-9992061
OR SMALL EMPLOYER HEALTH REINS POOL
CONNECTICUT
ALLIANCE OF SCHOOLS COOP INS PROGRA
CALIFORNIA
PUERTO RICO FIRE & ALLIED LINES UNDERWRITING
ASS
PUERTO RICO
HIGH RISK WORKERS'
COMPENSATION
REINSURANCE POOLS
NATIONAL INSURANCE
PROGRAMS
AA-9992049
AA-9992057
AA-9992060
AA-9992062
AA-9992063
AA-9992068
SOUTH CAROLINA INS RESERVE FUND
SOUTH CAROLINA AA-9992074
STATE OF SC BUDGET & CONTROL BOARD
SOUTH CAROLINA AA-9992075
TN SMALL EMPLOYER HEALTH REINS PROGRAM
CONNECTICUT
AA-9992080
TEXAS SMALL PREMIUM POLICY PLAN
TEXAS
AA-9992082
WISCONSIN SPECIAL RISK DISTRIBUTION PROGRAM
WYOMING SMALL EMPLOYER HEALTH REINS
PROGRAM
RHODE ISLAND
AA-9992090
CONNECTICUT
AA-9992093
ALABAMA WC POOL FOR COAL MINE RISKS
ILLINOIS WC POOL FOR COAL MINE RISKS
IOWA WC POOL FOR COAL MINE RISKS
KENTUCKY WC POOL FOR COAL MINE RISKS
TENNESSEE WC POOL FOR COAL MINE RISKS
VIRGINIA WC POOL FOR COAL MINE RISKS
ALASKA WORKERS’ COMP REINS POOL
NEW MEXICO WORKERS’ COMP REINS POOL
ARKANSAS STOCK POOL FOR ASSIGNED RISKS
ILLINOIS STOCK POOL FOR ASSIGNED RISKS
PENNSYLVANIA WC INS PLACEMENT & REINS POOL
ARKANSAS MUT REINS POOL FOR ASSIGNED RI
ILLINOIS MUT REINS POOL FOR ASSIGNED RI
MICHIGAN WORKERS’ COMP INS PLACEMENT
FACILITY
MAINE WORKERS’ COMP REINS POOL FOR 1987
POLICY YR
MAINE WORKERS’ COMP RESIDUAL MARKET POOL
ASSIGNED RISK POOL FOR RISKS IN PRE1970 POOLS
NATIONAL WORKERS’ COMP REINS POOL
CT SMALL EMPLOYER HEALTH REINS POOL (CSEHRP)
MINNESOTA WORKERS’ COMP INSURERS ASS INC
MISSISSIPPI WORKERS’ COMP ASSIGNED RISK POOL
MA WORKERS’ COMP ASSIGNED RISK POOL
ALABAMA
ILLINOIS
IOWA
KENTUCKY
TENNESSEE
VIRGINIA
ALASKA
NEW MEXICO
ARKANSAS
ILLINOIS
PENNSYLVANIA
ARKANSAS
ILLINOIS
AA-9992100
AA-9992101
AA-9992102
AA-9992103
AA-9992105
AA-9992106
AA-9992107
AA-9992108
AA-9992109
AA-9992110
AA-9992111
AA-9992112
AA-9992113
MICHIGAN
AA-9992114
MAINE
MAINE
NEW YORK
NEW YORK
CONNECTICUT
MINNESOTA
MISSISSIPPI
MASSACHUSETTS
DISTRICT OF
COLUMBIA
DISTRICT OF
COLUMBIA
DISTRICT OF
COLUMBIA
DISTRICT OF
COLUMBIA
AA-9992115
AA-9992116
AA-9992117
AA-9992118
AA-9992119
AA-9992120
AA-9992121
AA-9992122
FEDERAL CROP INS CORP
NATIONAL FLOOD INS PROGRAM
U S SMALL BUSINESS ADMINISTRATION
U S DEPARTMENT OF TRANSPORTATION
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
28
AA-9992200
AA-9992201
AA-9992202
AA-9992203
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
ILLINOIS INSURANCE
EXCHANGE
NEW YORK INSURANCE
EXCHANGE
INS EXCHANGE OF THE
AMERICAS
ALIEN POOLS
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
AAI SYNDICATE #1 LTD
ILLINOIS
AGORA SYNDICATE INC (IIE)
ILLINOIS
ALLIANCE SYNDICATE INC (IIE)
ILLINOIS
BRITAMCO UNDERWRITERS INC (IIE)
ILLINOIS
CLASSIC SYNDICATE (IIE)
ILLINOIS
COMPREHENSIVE ENSURERS MKT SYND INC CEM (IIE) ILLINOIS
FIRST MERCURY SYNDICATE (IIE)
ILLINOIS
FIRST OAK BROOK CORP SYNDICATE INC (IIE)
ILLINOIS
GENEVA ASSUR SYNDICATE INC (IIE)
ILLINOIS
GENEVA UNDERWRITERS SYNDICTE INC (IIE)
ILLIONIS
RCA SYNDICATE #1 LTD (IIE)
ILLINOIS
AA-9993100
AA-9993101
AA-9993102
AA-9993103
AA-9993104
AA-9993105
AA-9993106
AA-9993107
AA-9993108
AA-9993109
AA-9993110
RESURE INC (IIE)
TRANSCO SYNDICATE #1 LTD (IIE)
AGORA LTD SYNDICATE
PRIME SYNDICATE
ILLINOIS
ILLINOIS
ILLINOIS
ILLINOIS
AA-9993111
AA-9993112
AA-9993113
AA-9993114
ADENA SYNDICATE LTD
ALLIANZ SYNDICATE INC
BROUGHER SYNDICATE INC
BURT SYNDICATE INC THE
CANDON SYNDICATE NV
FAIRWAY SYNDICATE INC
FIRST NY SYNDICATE CORP THE
FIRST RIVERSIDE SYNDICATE INC
FREMONT SYNDICATE INC THE
GALLEON SYNDICATE CORP
GOLDSTREET SYNDICATE CORP
HEARTLAND GRP INC THE
IAT SYNDICATE INC
JOHNSON & HIGGINS WILLIS FABER SYNDICATE A
INC
J & H WF SYNDICATE B INC
KANSA SYNDICATE INC
KCC NEW YORK SYNDICATE CORP
MAIDEN LANE SYNDICATE INC THE
MML SYNDICATE INC
NRG AMERICA SYNDICATE INC
PAN ATLANTIC INVESTORS LTD
PINE TOP SYNDICATE INC
REALEX GRP NV THE
REPUBLIC WESTERN SYNDICATE INC
SENTRY SYNDICATE INC
SOUTH PLACE SYNDICATE INC THE
SPEAR LEEDS & KELLOGG RE CORP
SYNDICATE OF WALL STREET INVESTORS NV
U S RISK INC
WATER STREET SYNDICATE INC
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
AA-9993200
AA-9993201
AA-9993202
AA-9993203
AA-9993204
AA-9993205
AA-9993206
AA-9993207
AA-9993208
AA-9993209
AA-9993210
AA-9993211
AA-9993212
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
AA-9993213
AA-9993214
AA-9993215
AA-9993216
AA-9993217
AA-9993218
AA-9993219
AA-9993220
AA-9993221
AA-9993222
AA-9993223
AA-9993224
AA-9993225
AA-9993226
AA-9993227
AA-9993228
AA-9993229
ADMINISTRATIVE MGMT SERVICES SYND LTD
AIB SYNDICATE INC
AMERICAN ROYAL SYNDICATE INC
BGH SYNDICATE INC
BISCAYNE INS SYNDICATE INC
FEICO SYNDICATE INC
FIRST INTER CONTINENT INS SYND INC
FIRST INVESTORS SYNDICATE INC
HISPANO AMER INS SYNDICATE INC
LAHUS II INC
LAHUS III INC
LAHUS V INC
PACIFIC INS SYNDICATE
RAM SYNDICATE INC
SYNDICATE FOUR INC
SYNDICATE ONE INC
SYNDICATE THREE INC
SYNDICATE TWO INC
U K LIFE INS CO(IEA)
W F POE SYNDICATE
EXKO INTER POOL 1990
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
FLORIDA
GERMANY
AA-9993300
AA-9993301
AA-9993302
AA-9993303
AA-9993304
AA-9993305
AA-9993306
AA-9993307
AA-9993308
AA-9993309
AA-9993310
AA-9993311
AA-9993312
AA-9993313
AA-9993314
AA-9993315
AA-9993316
AA-9993317
AA-9993318
AA-9993319
AA-9994100
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
29
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
POOL/ASSOCIATION/ENTITY
STATE
EXKO CAPACITY XL
GERMANY
FAREX GROUPEMENT FRANCAIS DE SOCIETES D
ASSUR
FRANCE
INTERNATIONAL OIL INSURERS
UK
EUREX GIE FRANCE EXCESS
FRANCE
MARINE FRANCE EXCESS GIE FRANCE EXCESS
FRANCE
AVIATION FRANCE EXCESS GIE FRANCE EXCESS
FRANCE
CANADIAN ACCIDENT REINS FACILITY
CANADA
PARIS POOL D ASSUR DES RISQUES INTERNAT ET
FRANCE
SPECI
EXKO XL AGREEMENT 70
GERMANY
ALEXANDER HOWDEN EXCESS OF LOSS POOL
U.K.
NORSK NATURSKADEPOOL
NORWAY
LONDON ACCIDENT REINS GRP
U.K.
SAUDI UNITED INS CO LTD EC
SAUDI ARABIA
ONTARIO RISK SHARING POOL
CANADA
CARF INTL
CANADA
CARF II
CANADA
GROUPEMENT D ASSUR DE RISQUES EXCEPTIONNELS FRANCE
GROUPEMENT D ACCEPTATIONS MARITIMES INTL
FRANCE
CANADIAN LAWYERS INS ASSN
CANADA
FACILITY ASSN
CANADA
INI REINS POOL
GERMANY
ISAR REINS MGMT GMBH
GERMANY
INTERNATIONAL GRP PROTECTION & IND ASSN
U.K.
KENYA MOTOR INS POOL
KENYA
MUNICIPAL INS ASSN BRITISH COLUMBIA
CANADA
NEW ZEALAND EARTHQUAKE & WAR DAMAGE
NEW ZEALAND
COMMISSION
NEW ZEALAND LOCAL AUTHORITY PROTECTION
PGM FUND
NEW ZEALAND
KOT SAVINGS COOP MUT INS ASSN
KANSAS
EURO AMER REINS MGMT CO SRL
ITALY
WILLIS FABER AVIATION MARKETING AGREEMENT U.K.
EUROPEAN EXCESS FACILITY
GERMANY
INDUSTRY
POOLS/ASSOCIATIONS
POOL NUMBER
AA-9994101
AA-9994102
AA-9994103
AA-9994104
AA-9994105
AA-9994106
AA-9994107
AA-9994108
AA-9994109
AA-9994110
AA-9994111
AA-9994112
AA-9994113
AA-9994114
AA-9994115
AA-9994116
AA-9994117
AA-9994118
AA-9994122
AA-9994125
AA-9994140
AA-9994141
AA-9994143
AA-9994150
AA-9994157
AA-9994165
AA-9994166
AA-9994167
AA-9994175
AA-9994280
AA-9994281
AMERICAN ACCIDENT REINS GRP I
NEW YORK
AA-9995000
AMERICAN ACCIDENT REINS GRP II
NEW YORK
AA-9995001
AMERICAN ACCIDENT REINS GRP III
NEW YORK
AA-9995002
AMERICAN CARGO WAR RISK REINS EXCH
NEW YORK
AA-9995003
AMERICAN EXCESS INS ASSN
CONNECTICUT
AA-9995004
AMERICAN HULL INS SYNDICATE
NEW YORK
AA-9995005
ASSOCIATION OF MILL & ELEVATOR MUT INS COS
ILLINOIS
AA-9995006
AMERICAN NUCLEAR INSURERS CANADIAN LIAB &
CONNECTICUT
AA-9995007
PROP
AMERICAN NUCLEAR INSURERS EXCESS PROP POOL CONNECTICUT
AA-9995008
AMERICAN NUCLEAR INSURERS FOREIGN LIAB &
CONNECTICUT
AA-9995009
PROP
AMERICAN NUCLEAR INSURERS PRIMARY LIAB POOL CONNECTICUT
AA-9995010
AMERICAN NUCLEAR INSURERS PRIMARY PROP
CONNECTICUT
AA-9995011
POOL
ASSOCIATED ACCIDENT & HEALTH REINS
PENNSYLVANIA AA-9995012
ASSOCIATED AVIATION UNDERWRITERS (AAU)
NEW JERSEY
AA-9995013
ASSOCIATED COMMERCIAL PROP INSURERS
NEW YORK
AA-9995014
ASSOCIATED INLAND MARINE
MASSACHUSETTS AA-9995015
MUTUAL CAS UNDERWRITERS POOL
MASSACHUSETTS AA-9995016
SELECTED INS RISKS PLAN (SIR)
MASSACHUSETTS AA-9995017
AUTOMOBILE INS UNDERWRITING ASSN
PENNSYLVANIA AA-9995018
AVIATION OFFICE OF AMERICA INC
NEW YORK
AA-9995019
CAR FAC PROP FACULTATIVE SYNDICATE
NEW YORK
AA-9995020
DEVCO MUT ASSN
PENNSYLVANIA AA-9995021
EXCESS AND CAS REINS ASSN (ECRA)
NEW YORK
AA-9995022
EXCESS BOND REINS ASSN
NEW YORK
AA-9995023
GARDEN STATE REINS ASSN
PENNSYLVANIA AA-9995024
GULF COAST MARINE UNDERWRITING POOL
LOUISIANA
AA-9995025
GUY CARPENTER MGMT CORP (TREATY)
NEW YORK
AA-9995026
IMPROVED RISK MUT (IRM)
NORTH CAROLINA AA-9995027
INDUSTRIAL RISK INSURERS
CONNECTICUT
AA-9995028
INLAND WATERWAYS INS ASSN
OHIO
AA-9995029
MARINE OFFICE OF AMER CORP
NEW JERSEY
AA-9995030
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
30
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
MUNICIPAL BOND INS ASSN
MUTUAL MARINE OFFICE INC
MAELU
MAERP REINS ASSN
MUTUAL REINS BUREAU
NATIONAL ASSN OF MUT INS COS
NEW YORK MARINE MANAGERS
PENNSYLVANIA GRANGE MUT INS EXCH
PENNSYLVANIA MUT REINS EXCH
POLLUTION LIAB INS ASSN
REGISTERED MAIL INS ASSN
SATURN SURPLUS FACILITY
U S AIRCRAFT INS GRP
WATER QUALITY INS SYNDICATE
WOREXCO (WOR FAC FACULTATIVE SYND)
FRANKLIN INS ASSN
CARGO REINS ASSN
AMERICAN OFFSHORE INS SYNDICATE
FIRST NON PROFIT RISK POOLING TRUST
PINEHURST ACCIDENT REINS GRP
WORKERS’ COMP REINS BUREAU
EXCISE BOND UNDERWRITERS
SPECIAL POOLED RISK ADMINISTRATORS INC
(ORDINARY
SPECIAL POOLED RISK ADMINISTRATORS INC (GRP)
AMERICAN DISABILITY REINS UNDERWRITERS
SYNDICATE
AMERICAN LONG TERM CARE REINS GRP
FESTER FOTHERGILL & HARTUNG LTD
AMERICAN MILL AND AGRI INSURERS
ASSOCIATED MEDICAL REINS UNDERWRITERS
FLORIDA AUTOMOBILE DEALERS ASSN
FOREIGN CREDIT INS ASSN
GUARANTEED ISSUE POOL OF REINSURERS
IAGM CORP
IOWA AUTOMOBILE DEALERS ASSN
MULTIPLE EMPLOYER TRUST POOL (MET SLIP)
SECOND LIABILITY EXCESS OF LOSS POOL
NATIONAL ACCIDENT INS GRP
CANADIAN AVIATION INS GRP
ALL AMERICAN MARINE SLIP
CROWN MEDICAL REINS FACILITY
EASTERN MUT GRP
REINSURANCE OFFICE OF AMERICA
WORKERS’ COMP UNDERWRITERS ASSN
SPECIAL RISK REINS FACILITY
STARR TECHNICAL RISKS
LONG TERM CARE REINS UNDERWRITERS
TAURUS STOP LOSS POOL
SOMERSET MARINE INC SYNDICATE
AVIATORS INTL
STATEWIDE REINS UNDERWRITERS ASSN
AGENCY MANAGERS LTD
RETROCESSION POOL OF MN TOWNSHIP MUT INS
MARINER MGMT GRP AVIATION POOL
MARINER MGMT GRP MARINE POOL
FORTRESS REINS INC
AMERICAN PUBLIC ENTITY EXCESS POOL
RAILROAD INS UNDERWRITERS
D H MILLER INC
E&O AND D&O EXCESS REINS FACILITY
AMERICAN INTL MARINE AGENCY
NEW HAMPSHIRE MAP LIQUOR
ALASKA LAD
EXCESS AND TREATY MGMT CORP
PROGRAMME OF REINS FOR AMER MUT
NAMICO REINS FACILITY
LDG RE UNDERWRITERS OCCUPATIONAL A & H
FACILITY
EXTENDED REINS GRP
NEW YORK
NEW YORK
ILLINOIS
ILLINOIS
ILLINOIS
INDIANA
NEW YORK
PENNSYLVANIA
PENNSYLVANIA
ILLINOIS
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
NEW YORK
ILLINOIS
NEW JERSEY
NEW JERSEY
NEW YORK
AA-9995031
AA-9995032
AA-9995033
AA-9995034
AA-9995035
AA-9995036
AA-9995037
AA-9995038
AA-9995039
AA-9995040
AA-9995041
AA-9995042
AA-9995043
AA-9995044
AA-9995045
AA-9995046
AA-9995047
AA-9995048
AA-9995049
AA-9995050
AA-9995051
AA-9995052
NEW JERSEY
NEW JERSEY
AA-9995053
AA-9995054
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
31
MAINE
AA-9995055
NEW YORK
AA-9995056
NEW YORK
AA-9995057
ILLINOIS
AA-9995058
PENNSYLVANIA AA-9995059
FLORIDA
AA-9995060
NEW YORK
AA-9995061
NEW JERSEY
AA-9995062
NEW YORK
AA-9995063
IOWA
AA-9995064
NEW YORK
AA-9995065
NEW JERSEY
AA-9995066
ILLINOIS
AA-9995067
NEW YORK
AA-9995068
NEW YORK
AA-9995069
NEW YORK
AA-9995070
PENNSYLVANIA AA-9995071
ILLINOIS
AA-9995072
PENNSYLVANIA AA-9995073
MASSACHUSETTS AA-9995074
NEW YORK
AA-9995075
PENNSYLVANIA AA-9995076
PENNSYLVANIA AA-9995077
NEW YORK
AA-9995078
TEXAS
AA-9995079
NEW YORK
AA-9995080
NEW YORK
AA-9995081
MINNESOTA
AA-9995082
NEW JERSEY
AA-9995083
NEW JERSEY
AA-9995084
NORTH CAROLINA AA-9995085
MICHIGAN
AA-9995086
NEW YORK
AA-9995087
NEW YORK
AA-9995088
ILLINOIS
AA-9995089
NEW YORK
AA-9995090
NEW HAMPSHIRE AA-9995091
RHODE ISLAND
AA-9995092
NEW YORK
AA-9995093
NEW YORK
AA-9995094
INDIANA
AA-9995095
MASSACHUSETTS AA-9995096
NEW YORK
AA-9995097
NAIC Numerical List of Pools and Associations
December 13, 2001
TYPE
POOL/ASSOCIATION/ENTITY
STATE
POOL NUMBER
GLOBAL ACCIDENT LINE SLIP INC
DISABILITY ALLIANCE FOR REINS TREATIES (DART)
BALIS & CO INC
NAMIC CATASTROPHE POOL
MENNONITE RETROCESSION POOL
SPECIAL RISK REINS FACILITY II
GUY CARPENTER MGMT CORP (FACULTATIVE CAS)
AVIATION SPECIAL RISK REINS FACILITY
WORKERS’ COMP ALTERNATIVE FACILITY
OCCUPATIONAL ACCIDENT POOL
HCIF EXCESS LIABILITY POOL
HCIF ACCIDENT & HEALTH POOL
ARIZONA JOINT UNDERWRITING PLAN
CAL RE MANAGEMENT INC
TMK SPORTS REINS #1
TMK SPORTS REINS POOL #2
COMP RE FACILITY
PRINCETON REINS GRP
GEORGIA ASSOC OF CONV STORE WKRS COMP FUND
GEORGIA MFG WORKERS’ COMP FUND
GEORGIA WHOLESALERS AND RETAILERS WKR
COMP FUND
BALIS & CO INC RURAL ACCOUNTS PROGRAM
TMK SPORTS REINS POOL #3
BALIS & CO INC TREATY REINS PROGRAM
ASSOCIATED AEROSPACE UNDERWRITERS
BALIS & CO INC MULT LINE FAC BINDING AUTHORIT
ALTERNATIVE MEDICAL REINS GRP
OCCUPATIONAL ACCIDENT REINS GRP
SELF INSURED LUMBER BUSINESSES ASSN
LUMBER INDUSTRIES SELF INSURED GRP
TENNESSEE ASSN OF SELF INSURED LUMBER
ENTITIES
SPECIAL ACCIDENT REINS FACILITY
SPECIAL CAS ACCIDENT REINS FACILITY
HEALTH REINS MGMT FACILITY
DISABILITY REINS FACILITY
LATIN AMER REINS FACILITY
PRINCETON REINS GRP II
TMK SPORTS REINS POOL #4
GLOBAL AEROSPACE UNDERWRITERS
CALIFORNIA
MAINE
PENNSYLVANIA
NEW YORK
PENNSYLVANIA
MASSACHUSETTS
NEW YORK
MASSACHUSETTS
MASSACHUSETTS
ILLINOIS
MINNESOTA
MINNESOTA
ARIZONA
CALIFORNIA
ILLINOIS
ILLINOIS
PENNSYLVANIA
NEW JERSEY
GEORGIA
GEORGIA
AA-9995098
AA-9995099
AA-9995100
AA-9995101
AA-9995102
AA-9995103
AA-9995104
AA-9995105
AA-9995106
AA-9995107
AA-9995108
AA-9995109
AA-9995110
AA-9995111
AA-9995112
AA-9995113
AA-9995114
AA-9995115
AA-9995116
AA-9995117
GEORGIA
PENNSYLVANIA
ILLINOIS
PENNSYLVANIA
NEW YORK
PENNSYLVANIA
NEW YORK
NEW JERSEY
MASSACHUSETTS
NEW HAMPSHIRE
AA-9995118
AA-9995119
AA-9995120
AA-9995121
AA-9995122
AA-9995123
AA-9995125
AA-9995126
AA-9995127
AA-9995128
TENNESSEE
NEW JERSEY
NEW JERSEY
MASSACHUSETTS
MASSACHUSETTS
MASSACHUSETTS
NEW JERSEY
ILLINOIS
NEW JERSEY
AA-9995129
AA-9995130
AA-9995131
AA-9995132
AA-9995133
AA-9995134
AA-9995135
AA-9995136
AA-9995137
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
32
EXHIBIT C – NAIC Request for Alien Insurer Identification Number
REQUEST FOR ALIEN INSURER IDENTIFICATION NUMBER
INSTRUCTIONS
***PLEASE READ CAREFULLY***
One form should be completed for each company for which you are requesting a number. Numbers will be assigned to
insurers only – NUMBERS WILL NOT BE ASSIGNED TO BROKERS OR OTHER INTERMEDIARIES.
Be sure to complete the entire form. Completed forms and attachments should be forwarded to:
Jennifer Heinz, Company Demographics Analyst
NAIC
2301 McGee, Ste. 800
Kansas City, MO 64106
Fax: (816) 460-7521
Email: Jheinz@naic.org
NUMBERS ARE ASSIGNED FOR IDENTIFICATION PURPOSES ONLY. THE NAIC DOES NOT CERTIFY THE
AUTHORITY OR INTEGRITY OF ANY ORGANIZATION ASSIGNED A NUMBER UNDER THE REGISTRATION.
***********************************************************************************************************************************
FULL NAME OF ALIEN INSURER:
ADDRESS:
COUNTRY OF DOMICILE:
CONTACT/TITLE/PHONE:
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
ATTACH A COPY OF THE FOLLOWING, IN ENGLISH OR WITH ENGLISH TRANSLATION:
( ) REGISTRATION WITH COUNTRY OF DOMICILE
OR
( ) CERTIFICATE OF AUTHORITY IF ADMITTED IN AN U.S. STATE
***********************************************************************************************************************************
REQUESTOR INFORMATION:
COMPANY:
ADDRESS:
CITY, STATE, ZIP:
CONTACT/TITLE/PHONE/E-MAIL:
_________________________________________________________
_________________________________________________________
_________________________________________________________
_________________________________________________________
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
33
EXHIBIT D – SSAP No. 63 – Underwriting Pools and Associations Including Intercompany Pools
Statement of Statutory Accounting Principles No. 63
Underwriting Pools and Associations Including Intercompany Pools
STATUS
Type of Issue:
Issued:
Effective Date:
Affects:
Affected by:
Interpreted by:
Common Area
Initial Draft
January 1, 2001
No other pronouncements
No other pronouncements
No other pronouncements
SCOPE OF STATEMENT
1.
This statement establishes statutory accounting principles for underwriting pools and
associations.
SUMMARY CONCLUSION
Underwriting pools and associations can be categorized as follows:
(a) involuntary, (b) voluntary and (c) intercompany.
2.
3.
Involuntary pools represent a mechanism employed by states to provide insurance coverage to
those with higher than average probability of loss who otherwise would be excluded from obtaining
coverage. Reporting entities are generally required to participate in the underwriting results, including
premiums, losses, expenses and other operations of involuntary pools, based on their proportionate share
of similar business written in the state. Involuntary plans are also referred to as residual market plans,
involuntary risk pools, and mandatory pools.
4.
Voluntary pools are similar to involuntary pools except they are not state mandated and a
reporting entity participates in the pool voluntarily. In addition, voluntary pools are not limited to the
provision of insurance coverage to those with higher than average probability of loss, but often are used
to provide greater capacity for risks with exceptionally high levels of insurable values (e.g., aircraft,
nuclear power plants, refineries and offshore drilling platforms).
5.
Intercompany pooling relates to business that is pooled among affiliated entities who are party to
a pooling arrangement.
6.
Participation in a pool may be on a joint and several basis, i.e., in addition to a proportional share
of losses and expenses incurred by the pool, participants will be responsible for their share of any
otherwise unrecoverable obligations of other pool participants. In certain instances, one or more entities
may be designated as servicing carriers for purposes of policy issuance, claims handling and general
administration of the pooled business, while in other cases a pool manager or administrator performs all
of these functions and simply bills pool participants for their respective shares of all losses and expenses
incurred by the pool. In either case, liabilities arising from pooled business are generally incurred on a
basis similar to those associated with non-pooled business, and should therefore be treated in a manner
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
34
consistent with the guidelines set forth in SSAP No. 5—Liabilities, Contingencies and Impairments of
Assets (SSAP No. 5).
7.
Intercompany pooling arrangements involve establishment of a conventional quota share
reinsurance agreement under which all of the pooled business is ceded to the lead entity and then
retroceded back to the pool participants in accordance with their stipulated shares. In these
arrangements, only the policy issuing entity has direct liability to its policyholders or claimants; other
pool participants are liable as reinsurers for their share of the issuing entity’s obligations. Although
participants may use different assumptions (e.g., discount rates) in recording transactions, the timing of
recording transactions shall be consistently applied by all participants.
8.
Underwriting results shall be accounted for on a gross basis whereby the participant’s portion of
premiums, losses, expenses and other operations of the pools are recorded separately in the financial
statements rather than netted against each other. Premiums and losses shall be recorded as direct,
assumed and/or ceded as applicable. If the reporting entity is a direct writer of the business, premiums
shall be recorded as directly written and accounted for in the same manner as other business which is
directly written by the entity. To the extent that premium is ceded to a pool, premiums and losses shall
be recorded in the same manner as any other reinsurance arrangement. As in any other reinsurance
arrangement, a reporting entity who is a member of a pool shall record its participation in the pool as
assumed business.
9.
Equity interests in, or deposits receivable from, a pool represent cash advances to provide
funding for operations of the pool. These are admitted assets and shall be recorded separately from
receivables and payables related to a pool’s underwriting results. Receivables and payables related to
underwriting results shall be accounted for in accordance with the guidance in paragraphs 6 to 8, above.
If it is probable that these receivables are uncollectible, any uncollectible amounts shall be written off
against operations in the period such determination is made. If it is reasonably possible a portion of the
balance is uncollectible but is not written off, disclosure requirements outlined in SSAP No. 5 shall be
followed.
Disclosures
10.
If a reporting entity is part of a group of affiliated entities which utilizes a pooling arrangement
under which the pool participants cede substantially all of their direct and assumed business to the pool,
the financial statements shall include:
a.
b.
c.
d.
e.
A description of the basic terms of the arrangement and the related accounting;
Identification of the lead entity and of all affiliated entities participating in the
intercompany pool (include NAIC Company Codes) and indication of their respective
percentage shares of the pooled business;
Description of the lines and types of business subject to the pooling agreement;
Description of cessions to non-affiliated reinsurers of business subject to the pooling
agreement, and indication of whether such cessions were prior to or subsequent to the
cession of pooled business from the affiliated pool members to the lead entity;
Identification of all pool members which are parties to reinsurance agreements with nonaffiliated reinsurers covering business subject to the pooling agreement and which have a
contractual right of direct recovery from the non-affiliated reinsurer per the terms of such
reinsurance agreements;
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
35
f.
g.
11.
Explanation of any discrepancies between entries regarding pooled business on the
assumed and ceded reinsurance schedules of the lead entity and corresponding entries on
the assumed and ceded reinsurance schedules of other pool participants;
Description of intercompany sharing, if other than in accordance with the pool
participation percentage, of the Provision for Reinsurance (Schedule F, Part 7) and the
write–off of uncollectible reinsurance.
Refer to the preamble for further discussion regarding disclosure requirements.
Effective Date and Transition
12.
This statement is effective for years beginning January 1, 2001. A change resulting from the
adoption of this statement shall be accounted for as a change in accounting principle in accordance with
SSAP No. 3—Accounting Changes and Corrections of Errors.
© 2002
National
Association
of Insurance
Commissioners
© 2003
National
Association
of Insurance
Commissioners
36
RVU- OP
09/04/2003