(1)On June 1, 2020, and on June 1 of
each year thereafter, an insurer, or the insurance group of which the insurer is a
member, shall submit to the commissioner a CGAD that contains the information
described in section 10-3-1604 and in subsection (2) of this section.
Notwithstanding any request from the commissioner made pursuant to subsection
(3)of this section, if an insurer is a member of an insurance group, the insurer shall
submit the report required by this section to the commissioner of the lead state for
the insurance group, in accordance with the laws of the lead state, as determined
by the procedures outlined in the most recent financial analysis handbook adopted
by the NAIC.
(2)The CGAD must include the signature of the insurer or insurance group's
chief executive
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(1) On June 1, 2020, and on June 1 of
each year thereafter, an insurer, or the insurance group of which the insurer is a
member, shall submit to the commissioner a CGAD that contains the information
described in section 10-3-1604 and in subsection (2) of this section.
Notwithstanding any request from the commissioner made pursuant to subsection
(3) of this section, if an insurer is a member of an insurance group, the insurer shall
submit the report required by this section to the commissioner of the lead state for
the insurance group, in accordance with the laws of the lead state, as determined
by the procedures outlined in the most recent financial analysis handbook adopted
by the NAIC.
(2) The CGAD must include the signature of the insurer or insurance group's
chief executive officer or corporate secretary attesting that, to the best of that
individual's belief and knowledge:
(a) The insurer or insurance group has implemented the corporate
governance practices; and
(b) A copy of the disclosure has been provided to the insurer or insurance
group's board of directors or the appropriate committee thereof.
(3) An insurer or insurance group that is not required to submit a CGAD
under this section shall do so at the commissioner's request.
(4) (a) For purposes of completing a CGAD, an insurer or insurance group
may provide information regarding corporate governance at the ultimate
controlling parent level, at an intermediate holding company level, or at the
individual legal entity level, depending upon how the insurer or insurance group has
structured its system of corporate governance. Each insurer and insurance group is
encouraged to make its CGAD disclosures at:
(I) The level at which the insurer's or insurance group's risk appetite is
determined;
(II) The level at which the earnings, capital, liquidity, operations, and
reputation of the insurer or insurance group are overseen collectively and at which
the supervision of these factors is coordinated and exercised; or
(III) The level at which legal liability for failure of general corporate
governance duties would be placed.
(b) If an insurer or insurance group makes its CGAD disclosures at a level
described in subsection (4)(a) of this section, the insurer or insurance group shall
include in the CGAD an indication of which level and an explanation of any
subsequent change in the level.
(5) The commissioner's review of the CGAD and any additional requests for
information shall be made through the lead state of the insurance group, as
determined by the procedures within the most recent financial analysis handbook
adopted by the NAIC.
(6) Insurers and insurance groups that provide to the commissioner other
documents that include information substantially similar to the information
required by this part 16, including proxy statements filed pursuant to section 10-3-804 and other state or federal filings provided to the division, are not required to
duplicate that information in the CGAD but shall include in the CGAD cross
references indicating which document or documents include the information.
Source: L. 2019: Entire part added, (HB 19-1291), ch. 188, p. 2085, � 1,
effective August 2.