1. a. The commissioner may act as the groupwide supervisor for any internationally
active insurance group in accordance with this section. However, the
commissioner may otherwise acknowledge another regulatory official as the
groupwide supervisor if 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; or
(3)Has substantial insurance operations in the United States and this state, but
the commissioner has determined under the factors set forth in
subsections 2 and 6 the other regulatory official is the appropriate
groupwide supervisor.
b. An insurance holding company system that does not otherwise qualify as an
internationally active insurance
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1. a. The commissioner may act as the groupwide supervisor for any internationally
active insurance group in accordance with this section. However, the
commissioner may otherwise acknowledge another regulatory official as the
groupwide supervisor if 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; or
(3) Has substantial insurance operations in the United States and this state, but
the commissioner has determined under the factors set forth in
subsections 2 and 6 the other regulatory official is the appropriate
groupwide supervisor.
b. An insurance holding company system that does not otherwise qualify as an
internationally active insurance group may request the commissioner make a
determination or acknowledgment as to a groupwide supervisor under this
section.
2. In cooperation with other state, federal, and international regulatory agencies, the
commissioner shall identify a single groupwide supervisor for an internationally active
insurance group and may determine the commissioner is the appropriate groupwide
supervisor for an internationally active insurance group that conducts substantial
insurance operations concentrated in this state. However, the commissioner may
acknowledge a regulatory official from another jurisdiction is the appropriate groupwide
supervisor for the internationally active insurance group. The commissioner shall
consider the following factors when making a determination or acknowledgment under
this subsection:
a. The place of domicile of the insurers within the internationally active insurance
group which hold the largest share of the group's premiums, assets, or liabilities;
b. The place of domicile of the top-tiered insurers in the insurance holding company
system of the internationally active insurance group;
c. The location of the executive offices or largest operational offices of the
internationally active insurance group;
d. Whether another regulatory official is acting or is seeking to act as the groupwide
supervisor under a regulatory system the commissioner determines to be:
(1) Substantially similar to the system of regulation provided under the laws of
this state; or
(2) Otherwise sufficient in terms of providing for groupwide supervision,
enterprise risk analysis, and cooperation with other regulatory officials; and
e. Whether another regulatory official acting or seeking to act as the groupwide
supervisor provides the commissioner with reasonably reciprocal recognition and
cooperation. However, a commissioner identified under this section as the
groupwide supervisor may determine it is appropriate to acknowledge another
supervisor to serve as the groupwide supervisor. The acknowledgment of the
groupwide supervisor must be made after the consideration of the factors listed in
subdivisions a through e, and must 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.
3. a. Notwithstanding any other provision of law, when another regulatory official is
acting as the groupwide supervisor of an internationally active insurance group,
the commissioner shall acknowledge that regulatory official as the groupwide
supervisor unless the commissioner determines there has been a significant
material change in the internationally active insurance group that results in:
(1) The internationally active insurance group's insurers domiciled in this state
holding the largest share of the group's premiums, assets, or liabilities; or
(2) This state being the place of domicile of the top-tiered insurers in the
insurance holding company system of the internationally active insurance
group.
b. If such a material change has occurred, the commissioner shall make a
determination or acknowledgment as to the appropriate groupwide supervisor
under subsection 2.
4. Under section 26.1-10-06, the commissioner may collect from any insurer registered
under section 26.1-10-04 all information necessary to determine whether the
commissioner may act as the groupwide supervisor of an internationally active
insurance group or if the commissioner may acknowledge another regulatory official to
act as the groupwide supervisor. Before issuing a determination that an internationally
active insurance group is subject to groupwide supervision by the commissioner, the
commissioner shall notify the insurer registered under section 26.1-10-04 and the
ultimate controlling person within the internationally active insurance group. The
internationally active insurance group must be provided not less than thirty days to
provide the commissioner with additional information pertinent to the pending
determination. The commissioner shall publish on the commissioner's internet website
the identity of internationally active insurance groups the commissioner has
determined are subject to groupwide supervision by the commissioner.
5. If the commissioner is the groupwide supervisor for an internationally active insurance
group, the commissioner may engage in any of the following groupwide supervision
activities:
a. Assess the enterprise risks within the internationally active insurance group to
ensure:
(1) The material financial condition and liquidity risks to the members of the
internationally active insurance group which are engaged in the business of
insurance are identified by management; and
(2) Reasonable and effective mitigation measures are in place.
b. 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 information about the members of the internationally
active insurance group regarding:
(1) Governance, risk assessment, and management;
(2) Capital adequacy; and
(3) Material intercompany transactions.
c. 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 the internationally active insurance group is able to timely recognize and
mitigate enterprise risks to members of that internationally active insurance
groups which are engaged in the business of insurance.
d. 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 section 26.1-10-07 through
supervisory colleges as set forth in section 26.1-10-06.1 or otherwise.
e. Enter agreements with or obtain documentation from any insurer registered under
section 26.1-10-04; any member of the internationally active insurance group;
and any other state, federal, and international regulatory agency for members of
the internationally active insurance group, providing the basis for or otherwise
clarifying the commissioner's role as groupwide supervisor, including provisions
for resolving disputes with other regulatory officials. The agreement or
documentation may not serve as evidence in any proceeding 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.
f. Other groupwide supervision activities, consistent with the authorities and
purposes enumerated in this section, as considered necessary by the
commissioner.
6. If the commissioner acknowledges another regulatory official from a jurisdiction that is
not accredited by the national association of insurance commissioners is the
groupwide supervisor, the commissioner may cooperate reasonably, through
supervisory colleges or otherwise, with groupwide supervision undertaken by the
groupwide supervisor, provided:
a. The commissioner's cooperation is in compliance with the laws of this state; and
b. The regulatory official acknowledged as the groupwide supervisor also
recognizes and cooperates with the commissioner's activities as a groupwide
supervisor for other internationally active insurance groups as applicable. If such
recognition and cooperation is not reasonably reciprocal, the commissioner may
refuse recognition and cooperation.
7. The commissioner may enter an agreement with or obtain documentation from any
insurer registered under section 26.1-10-04; any affiliate of the insurer; and other state,
federal, and international regulatory agency for members of the internationally active
insurance group which provide the basis for or otherwise clarify a regulatory official's
role as groupwide supervisor.
8. The commissioner may adopt rules necessary for the administration of this section.
9. A registered insurer subject to this section is liable for and shall pay the reasonable
expenses of the commissioner's participation in the administration of this section,
including the engagement of an attorney, actuary, and any other professional and all
reasonable travel expenses.