The National Association of Insurance Commissioners (NAIC) has adopted a Corporate Governance Annual Disclosure Model Act and its Corporate Governance Annual Filing Model Regulation to require an annual disclosure of a company’s corporate governance framework and practices. We understand that the Pennsylvania Insurance Department expects to have legislative adoption of the NAIC’s Model Law and Regulation in 2015 for an effective date of January 1, 2016. If this occurs, a company’s filings would begin in 2016. The Act and Regulation would apply to all companies regardless of size or structure.
Under the Act, an insurer, or the insurance group of which the insurer is a member, would, no later than June 1 of each calendar year, submit to the Insurance Commissioner a Corporate Governance Annual Filing (CGAF) that contains the following information: description of corporate governance framework, board of directors’ and committee policies and practices, management policies and practices and management and oversight of critical risk areas. A Guidance Manual has also been exposed for comment that provides further explanation of the requirements of the Act.
Our Property & Casualty (P&C) Insurance Group is available if you have any questions or concerns about this update. As an A.M. Best Ranked practice, the BSSF P&C Insurance Group is one of the largest in the Mid-Atlantic region to service the industry.
ABOUT THE AUTHOR
Hank J. Straub, CPA
Hank is a Principal and Treasurer with Brown Schultz Sheridan & Fritz specializing in accounting and audits of property and casualty insurance companies. His expertise in the insurance practice extends beyond the Central PA region of Harrisburg, Lancaster, and York. Hank and his team serve clients in the Mid-Atlantic Region, with a focus in Pennsylvania, New Jersey, Maryland, Delaware, Virginia, and New York.