Commissioner McPeak to Help Lead NAIC Committee
Wednesday, January 26, 2011 | 06:18am
NASHVILLE- The National Association of Insurance Commissioners (NAIC) has named its 2011 committee chairs and vice chairs. Commerce and Insurance Commissioner Julie Mix McPeak will be the vice chair of the organization’s Financial Regulation Standards and Accreditation Committee.
“I am honored to have been selected to help lead this committee,” says McPeak. “I look forward to working with my colleagues in the NAIC, as well as building on the successes of our own Insurance Division. Affirming and maintaining accreditation standards within our industry goes a long way to protecting both the companies that operate within a state and their customers.”
The mission of the accreditation program is to establish and maintain standards to promote sound insurance company financial solvency regulation. The accreditation program provides a process through which solvency regulation of multi-state insurance companies can be enhanced and adequately monitored with emphasis on:
- Adequate solvency laws and regulations in each accredited state to protect consumers and guaranty funds.
- Effective and efficient financial analysis and examination processes in each accredited state.
- Appropriate organizational and personnel practices in each accredited state.
The accreditation program accomplishes this by continually evaluating the accreditation standards within the changing regulatory environment and through continual monitoring of accredited state insurance departments by conducting the following accreditation reviews:
- Pre-accreditation reviews, which are to occur approximately one year prior to a state's full accreditation review, entail a high-level review of the financial analysis and financial examination functions to identify areas of improvement.
- Full accreditation reviews, which occur once every five years subject to interim annual reviews, are a full review of laws and regulations, the financial analysis and financial examination functions, and organizational and personnel practices to assist in determining a state's compliance with the accreditation standards. Tennessee’s Insurance Division’s full accreditation was renewed last year.
- Interim annual reviews, which are to occur annually to maintain accredited status between full accreditation reviews, deal with shifts in the regulatory landscape. Here, any law and regulation changes, the financial analysis and financial examination functions, and organizational and personnel practices are examined to ensure continued compliance with the accreditation standards and to identify areas of improvement.
The mission of the NAIC is to assist state insurance regulators, individually and collectively, in serving the public interest and achieving insurance regulatory goals that protect the public and promote competitiveness within the industry.
The Department of Commerce and Insurance works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee. www.tn.gov/commerce/