§691.9.1. Group-wide supervision of internationally active insurance groups
A. The commissioner may act as the group-wide supervisor for any internationally
active insurance group pursuant to this Section. An insurance holding company system that
does not otherwise qualify as an internationally active insurance group may request that the
commissioner make a determination or acknowledgment as to its group-wide supervisor
pursuant to this Section. When one of the following applies, the commissioner may
acknowledge another regulatory official as the group-wide supervisor when the
internationally active insurance group:
(1)Does not have substantial insurance operations in the United States.
(2)Has substantial insurance operations in the United States but not in this state.
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§691.9.1. Group-wide supervision of internationally active insurance groups
A. The commissioner may act as the group-wide supervisor for any internationally
active insurance group pursuant to this Section. An insurance holding company system that
does not otherwise qualify as an internationally active insurance group may request that the
commissioner make a determination or acknowledgment as to its group-wide supervisor
pursuant to this Section. When one of the following applies, the commissioner may
acknowledge another regulatory official as the group-wide supervisor when the
internationally active insurance group:
(1) Does not have substantial insurance operations in the United States.
(2) Has substantial insurance operations in the United States but not in this state.
(3) Has substantial insurance operations in the United States and this state but the
commissioner has determined pursuant to the factors set forth in Subsections B and F of this
Section that the other regulatory official is the appropriate group-wide supervisor.
B. In cooperation with other state, federal, and international regulatory agencies, the
commissioner shall identify a single group-wide supervisor for an internationally active
insurance group. A commissioner identified under this Section as the group-wide supervisor
may determine that it is appropriate to acknowledge another supervisor to serve as the
group-wide supervisor. The acknowledgment of the group-wide supervisor shall be made
after consideration of the factors specified in Paragraphs (1) through (5) of this Subsection
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. The commissioner shall
consider the following factors and the relative scale of each when making a determination
or acknowledgment pursuant to this Subsection:
(1) The place of domicile of the insurers within the internationally active insurance
group that hold the largest share of the group's written premiums, assets, or liabilities.
(2) The place of domicile of the top-tiered insurer or insurers in the insurance
holding company system of the internationally active insurance group.
(3) The location of the executive offices or largest operational offices of the
internationally active insurance group.
(4) Whether another regulatory official is acting or is seeking to act as the
group-wide supervisor under a regulatory system that the commissioner determines to be one
of the following:
(a) Substantially similar to the system of regulation provided pursuant to the laws
of this state.
(b) Otherwise sufficient in terms of providing for group-wide supervision, enterprise
risk analysis, and cooperation with other regulatory officials.
(5) Whether another regulatory official acting or seeking to act as the group-wide
supervisor provides the commissioner with reasonably reciprocal recognition and
cooperation.
C. Notwithstanding any other provision of law, when another regulatory official is
acting as the group-wide supervisor of an internationally active insurance group, the
commissioner shall acknowledge that regulatory official as the group-wide supervisor.
However, the commissioner shall make a determination or acknowledgment pursuant to
Subsection B of this Section in the event of material change in the internationally active
insurance group that results in one of the following:
(1) The internationally active insurance group's insurers domiciled in this state
holding the largest share of the group's premiums, assets, or liabilities.
(2) This state being the place of domicile of the top-tiered insurer or insurers in the
insurance holding company system of the internationally active insurance group.
D. Pursuant to R.S. 22:691.8, the commissioner is authorized to collect from any
insurer registered pursuant to R.S. 22:691.6 all information necessary to determine whether
the commissioner may act as the group-wide supervisor of an internationally active insurance
group or if the commissioner may acknowledge another regulatory official to act as the
group-wide supervisor. Prior to a determination that an internationally active insurance group
is subject to group-wide supervision, the commissioner shall notify the insurer registered
pursuant to R.S. 22:691.6 and the ultimate controlling person within the internationally
active insurance group. The internationally active insurance group shall have not less than
thirty days to provide the commissioner with additional information pertinent to the pending
determination. The commissioner shall publish in the Louisiana Register and on the internet
website of the Department of Insurance the identity of internationally active insurance groups
that the commissioner has determined are subject to group-wide supervision by the
commissioner.
E. If the commissioner is the group-wide supervisor for an internationally active
insurance group, the commissioner may engage in any of the following group-wide
supervision activities:
(1) Assess the enterprise risk within the internationally active insurance group to
ensure that both of the following conditions are met:
(a) The material financial condition and liquidity risks to the members of the
internationally active insurance group that are engaged in the business of insurance are
identified by management.
(b) Reasonable and effective mitigation measures are in place.
(2) Request, from any member of an internationally active insurance group subject
to the commissioner's supervision, information necessary and appropriate to assess enterprise
risk, including but not limited to information about the members of the internationally active
insurance group regarding:
(a) Governance, risk assessment, and management.
(b) Capital adequacy.
(c) Material intercompany transactions.
(3) Coordinate and, through the authority of the regulatory officials of the
jurisdictions where members of the internationally active insurance group are domiciled,
compel development and implementation of reasonable measures designed to ensure that the
internationally active insurance group is able to timely recognize and mitigate enterprise risk
to members of such internationally active insurance groups that are engaged in the business
of insurance.
(4) Communicate with other state, federal, and international regulatory agencies for
members within the internationally active insurance group and share relevant information
subject to the confidentiality provisions of R.S. 22:691.10 through supervisory colleges as
set forth in R.S. 22:691.9.
(5) Enter into agreements with or obtain documentation from any insurer registered
pursuant to R.S. 22:691.6, 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 commissioner's
role as 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.
(6) Other group-wide supervision activities, consistent with the authorities and
purposes enumerated in this Subsection, as considered necessary by the commissioner.
F. If the commissioner acknowledges that another chief insurance regulatory official
from a jurisdiction that is not accredited by the NAIC is the group-wide supervisor, the
commissioner may reasonably cooperate, through supervisory colleges or otherwise, with
group-wide supervision undertaken by the group-wide supervisor, provided that both of the
following conditions are met:
(1) The commissioner's cooperation is in compliance with the laws of this state.
(2) The regulatory official acknowledged as the group-wide supervisor also
recognizes and cooperates with the commissioner's activities as a group-wide supervisor for
other internationally active insurance groups where applicable. When such recognition and
cooperation is not reasonably reciprocal, the commissioner may refuse recognition and
cooperation.
G. The commissioner may enter into agreements with or obtain documentation from
any insurer registered pursuant to R.S. 22:691.6, any affiliate of the insurer, and other state,
federal, and international regulatory agencies for members of the internationally active
insurance group, which provide the basis for or otherwise clarify a regulatory official's role
as group-wide supervisor.
H. The commissioner may promulgate rules and regulations necessary for the
administration of this Section.
I. A registered insurer subject to this Section shall be liable for and shall pay the
reasonable expenses of the commissioner's participation in the administration of this Section,
including the engagement of attorneys, actuaries, and any other professionals and all
reasonable travel expenses.