Additional information is required, as set forth in more detailed regulations. For example, reporting companies are expected to discuss how the experience and qualifications of board members meet the needs of the insurer, and to include information about the nomination process, diversification of membership, independence of directors, training of new directors, etc. Each year these disclosures are to be updated if needed and filed with the department of insurance. Similar details are set forth in the regulations regarding the senior management. The disclosure is to include information about the suitability of the management determined based on their background and experience. The disclosure should also provide details about the performance evaluation metrics for management, succession plans, and code of ethics. Finally, a significant description of the enterprise risk management process must be included. This applies to all companies even if they have already completed an Own Risk and Solvency Assessment, an Enterprise Risk Report, or other risk assessments with the department of insurance.
NAMIC does not oppose adoption of the CGAD Model Act in the states if the enactment at the state level mirrors the model act language and all confidentiality protections outlined in the model act are included without significant deviation. In addition, NAMIC opposes any regulatory tool developed by the NAIC that encourages uniformity and consistency in reviewing corporate governance practices, such as a common assessment methodology and/or a rating system for corporate governance.