Group Capital Calculation (E) Working Group

2020 Charges

The Group Capital Calculation (E) Working Group will:

Construct a U.S. group capital calculation (GCC) using a RBC aggregation methodology. Complete by the 2020 Summer National Meeting.
Provide direction to the Group Solvency Issues (E) Working Group on appropriate changes to existing authority or existing regulatory guidance related to the GCC. Complete by the 2020 Fall National Meeting.
Liaise, as necessary, with the International Insurance Relations (G) Committee on international group capital developments and consider input from participation of U.S. state insurance regulators in the International Association of Insurance Supervisors (IAIS) monitoring process.
Continually review and monitor the effectiveness of the GCC and consider revisions, as necessary, to maintain the effectiveness of its objective under U.S. solvency system.

Calendar

Conference Call
Friday, June 26, 2020
12:00 PM ET, 11:00 AM CT, 10:00 AM MT, 9:00 AM PT
Expected Length of Call: 90 minutes

This is an informal GCC webinar. The purpose is to provide a forum for questions or clarifications related to the exposed GCC materials in order to assist potential commenters in advance of the comment deadline on July 19.

The materials consist of those posted on the Group Capital Calculation (E) Working Group web page in the Exposure Drafts Tab.

Conference Call
Tuesday, July 21, 2020
1:00 PM ET, 12:00 PM CT, 11:00 AM MT, 10:00 AM PT
Expected Length of Call: 1 hr

The primary purpose of the call will be to consider comments received on proposed changes to the Holding Company Act previously exposed for comment.

See all Current Exposure Drafts

As a follow up to the Working Group’s June 2^nd conference call, NAIC staff has now developed, or obtained language from interested parties where directed by the Working Group, and incorporated that language into the updated NAIC Holding Company Act. Two versions of such are posted below, the first is a word document that we make available to parties for purposes of making further more precise comments on the exposed language. As you develop comments, please propose alternative language where you believe revisions are appropriate so that we can be focused in our discussions. The second is a PDF that includes comments in the right margin intended to highlight the basis for incorporation of the change, and intended to assist you in your review.

June Revised MO440 for GCC [WORD]
June Revised MO440 for GCC w/Explanations [PDF]

Please submit comments to Dan Daveline by COB, July 15, 2020.

The Group Capital Calculation (E) Working Group has exposed the following for a 60-day comment period.

Please submit comments to Lou Felice by COB, July 19, 2020.

Comment Letters on GCC Results Confidentiality

Coalition Letter on Confidentiality

Proposed Group Capital Calculation (GCC)

3-12-2019 GCC Webinar

6-26-2020 GCC Webinar

CDAWG Group Capital Calculation Recommendation 11/19/15

ACLI/AIA Presentation - 2016 Spring National Meeting

Inventory Method Items with Questions 8/22/16

NAIC Staff Memo on US Insurers that Do Not File RBC and Permitted and Prescribed Practices 03/22/17

NAIC Staff Memo on Scalars for Non-US Insurers 04/13/17

Jurisdictions Suggested for Development of Scalars

NAIC Staff Memo on Captives that Assume XXX/AXXX Business 10/31/17

NAIC Staff Memo on Surplus Notes and Debt 10/30/19

GCC FIELD TESTING

Proposed Group Capital Calculation (GCC)

2019 Field Testing Kick-off Presentation

2019 GCC Field Test Instructions (Clean)

2019 GCC Field Test Instructions (Marked)

2019 GCC Field Test Q&A 8/2/19

2019 GCC Field Testing Template 8/2/19

Test 2 Additional Data

Test 5 XXX/AXXX On-top Adjustment

Related NAIC Publications

Draft meeting minutes are available free for meeting attendees 10 business days after a national meeting concludes, using the User ID and Password supplied by the NAIC. Regulators may access minutes via StateNet.
Final committee minutes and Proceedings of the NAIC are available to non–attendees, after adoption at the next national meeting, for free in the PDF format through the NAIC Products & Services website.

Accounting Practices and Procedures Manual

Annual and Quarterly Statement Blanks

Annual and Quarterly Statement Instructions

Compendium of State Laws on Insurance Topics

Financial Analysis Handbook

Financial Condition Examiners Handbook

Insurance Regulatory Information System

NAIC Model Laws, Regulations, Guidelines and Other Resources

Purposes and Procedures Manual of the NAIC Investment Analysis Office

Risk-Based Capital Forecasting

States' Prescribed Differences from NAIC Statutory Accounting Principles