The Office of Insurance Regulation is promulgating rule 69O-143.0465, to reinstate the definition of the term “insurance holding company system.” It also replaces the term “group-wide” with the statutory term “groupwide.”....

 

DEPARTMENT OF FINANCIAL SERVICES

OIR – Insurance Regulation

RULE NO.:RULE TITLE:

69O-143.0465Group-wide Supervision of Internationally Active Insurance Groups

PURPOSE AND EFFECT: The Office of Insurance Regulation is promulgating rule 69O-143.0465, to reinstate the definition of the term “insurance holding company system.” It also replaces the term “group-wide” with the statutory term “groupwide.”

SUMMARY: The proposed rule reinstates the definition of “insurance holding company system” that was repealed in 2013. This term is used in existing rules including rules 69O-143.046, 69O-143.0465, 69O-143.047, and 69O-143.061, F.A.C. It also replaces the term “group-wide” with the statutory term “groupwide.”

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 624.308(1), 628.801(1), 628.804(4), F.S.

LAW IMPLEMENTED: 624.307(1), 628.801, 628.804, F.S.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Kama Monroe, Senior Attorney, Office of Insurance Regulation, [e-mail], [phone].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69O-143.0465 Groupwide Group-wide Supervision of Internationally Active Insurance Groups

(1) No change.

(2) “Insurance Holding Company System” consists of two or more affiliated persons, one or more of which is an insurer.

(3)(2)(a) The Office is authorized to act as the groupwide group-wide supervisor for any internationally active insurance group in accordance with Rule 69O-143.046, F.A.C., and Section 628.804, F.S. However, the Office may otherwise acknowledge another regulatory official as the groupwide group-wide supervisor where the internationally active insurance group:

1. through 2. No change.

3. Has substantial insurance operations in the United States and this state, but the Office has determined pursuant to the factors set forth in subsections (4) and (8) (3) and (7) that the other regulatory official is the appropriate groupwide group-wide supervisor.

(b) An insurance holding company system that does not otherwise qualify as an internationally active insurance group may request that the Office make a determination or acknowledgment as to a groupwide group-wide supervisor pursuant to this subsection.

(4)(3)(a) In cooperation with other state, federal and international regulatory agencies, the Office will identify a single groupwide group-wide supervisor for an internationally active insurance group. The Office may determine that the Office is the appropriate groupwide group-wide supervisor for an internationally active insurance group that conducts substantial insurance operations concentrated in this state. However, the Office may acknowledge that a regulatory official from another jurisdiction is the appropriate groupwide group-wide supervisor for the internationally active insurance group. The Office shall consider the following factors when making a determination or acknowledgment under this subsection:

1. through 3. No change.

4. Whether another regulatory official is acting or is seeking to act as the groupwide group-wide supervisor under a regulatory system that the Office determines to be:

a. No change.

b. Otherwise sufficient in terms of providing for groupwide group-wide supervision, enterprise risk analysis, and cooperation with other regulatory officials; and

5. Whether another regulatory official acting or seeking to act as the groupwide group-wide supervisor provides the Office with reasonably reciprocal recognition and cooperation.

(b) However, a regulatory official identified under this rule as the groupwide group-wide supervisor may determine that it is appropriate to acknowledge another supervisor to serve as the groupwide group-wide supervisor. The acknowledgment of the groupwide group-wide supervisor shall be made after consideration of the factors listed in subparagraphs (a)1. through (a)5. above, and shall be made in cooperation with and subject to the acknowledgment of other regulatory officials involved with supervision of members of the internationally active insurance group, and in consultation with the internationally active insurance group.

(5)(4) Notwithstanding any other provision of law, when another regulatory official is acting as the groupwide group-wide supervisor of an internationally active insurance group, the Office shall acknowledge that regulatory official as the groupwide group-wide supervisor. However, in the event of a material change in the internationally active insurance group that results in:

(a) No change.

(b) This state being the place of domicile of the top-tiered insurer(s) in the insurance holding company system of the internationally active insurance group, the Office shall make a determination or acknowledgment as to the appropriate groupwide group-wide supervisor for such an internationally active insurance group pursuant to subsection (4)(3).

(6)(5) Pursuant to Section 628.801(3), F.S., the Office is authorized to collect from any insurer registered pursuant to Rule 69O-143.046, F.A.C., all information necessary to determine whether the Office may act as the groupwide group-wide supervisor of an internationally active insurance group or if the Office may acknowledge another regulatory official to act as the groupwide group-wide supervisor. Prior to issuing a determination that an internationally active insurance group is subject to groupwide group-wide supervision by the Office, the Office shall notify the insurer registered pursuant to Rule 69O-143.046, F.A.C., and the ultimate controlling person within the internationally active insurance group. The internationally active insurance group shall have not less than thirty (30) days to provide the Office with additional information pertinent to the pending determination. The Office shall publish the identity of internationally active insurance groups that the Office has determined are subject to groupwide group-wide supervision by the Office.

(7)(6) If the Office is the groupwide group-wide supervisor for an internationally active insurance group, the Office is authorized to engage in any of the following groupwide group-wide supervision activities.

(a) through (d) No change.

(e) Enter into agreements with or obtain documentation from any insurer registered under Rule 69O-143.046, F.A.C., any member of the internationally active insurance group, and any other state, federal and international regulatory agencies for members of the internationally active insurance group, providing the basis for or otherwise clarifying the Office's role as groupwide group-wide supervisor, including provisions for resolving disputes with other regulatory officials. Such agreements or documentation shall not serve as evidence in any proceeding that any insurer or person within an insurance holding company system not domiciled or incorporated in this state is doing business in this state or is otherwise subject to jurisdiction in this state.

(f) Other groupwide group-wide supervision activities, consistent with the authorities and purposes enumerated above, as considered necessary by the Office.

(8)(7) If the Office acknowledges that another regulatory official from a jurisdiction that is not accredited by the NAIC is the groupwide group-wide supervisor, the Office is authorized to reasonably cooperate, through supervisory colleges or otherwise, with groupwide supervision undertaken by the groupwide group-wide supervisor, provided that:

(a) No change.

(b) The regulatory official acknowledged as the groupwide group-wide supervisor also recognizes and cooperates with the Office's activities as a groupwide group-wide supervisor for other internationally active insurance groups where applicable. Where such recognition and cooperation is not reasonably reciprocal, the Office is authorized to refuse recognition and cooperation.

(9)(8) The Office is authorized to enter into agreements with or obtain documentation from any insurer registered under Rule 69O-143.046, F.A.C., any affiliate of the insurer, and other state, federal and international regulatory agencies for members of the internationally active insurance group, that provide the basis for or otherwise clarify a regulatory official's role as groupwide group-wide supervisor.

Rulemaking Authority 624.308(1), 628.801(1), 628.804(4) FS. Law Implemented 624.307(1), 628.801, 628.804 FS. History-New 1-3-21, Amended _______.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Kama Monroe, Assistant General Counsel

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: September 18, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 24, 2023