H383 - NAIC Models/ORSA & Credit for Reinsurance. (SL 2017-136)

Overview: S.L. 2017-136 amends North Carolina's insurance laws to comply with the National Association of Insurance Commissioners (NAIC) and allow the North Carolina Department of Insurance (DOI) to maintain its NAIC accreditation.

Specifically, the act 1) creates a new insurance regulation, Own Risk and Solvency Assessment (ORSA), which requires an insurer to perform an internal assessment of its material and relevant risks and the sufficiency of its capital resources to support its risks, 2) establishes a certification program for foreign reinsurers, and 3) requires DOI to adopt rules substantially similar to the most recent model regulation on suitability in annuity transactions issued by the NAIC.

This act has multiple effective dates. The provisions of this act pertaining to a certification program for foreign reinsurers become effective January 1, 2019. The provision of this act pertaining to ORSA becomes effective January 1, 2018.

For the effective dates for the provisions of this act pertaining to suitability in annuity transactions, please see the full summary. Except as otherwise provided, the remainder of this act became effective July 20, 2017.