Statute CRS 10-3-208 “NAIC instructions, procedures, guidelines”
Regulation § 3-1-10 “The appropriate NAIC AP&P Manual. These Manuals do not supercede any specific statutes, regs, orders, rulings”
The Insurance Department believes that no additional action is necessary to adopt Codification, due to authority provided by language of existing statute and regulation.
The Department’s review of relevant statutes and rules is nearing completion. Resulting amendments to the statutes will be introduced during the 2001 legislative session. The Department also plans to issue a bulletin in early 2000 explaining this process and soliciting comments.
Person contacted: Chad Collier
Statute Sec. 38a-53 “NAIC AP&P Manual subject to deviations prescribed by Commissioner”
“When adopting accounting rules, the Commissioner shall follow those ap&p’s published in the NAIC AP&P Manual, version effective 1/1/2001, or any subsequent corresponding manual, and the NAIC Annual Statement Instructions, subject to any deviations the Commissioner may prescribe.”
Includes same wording that was proposed in Senate Bill 1261, above. Also makes changes to various statutory provisions in order to conform to Codification, including the definition of qualified assets, surplus requirements, and premium and contingency reserve requirements.
The Insurance Department formed a review group, including domestic industry, in 1999. Legislation based on the recommendations of that group has been introduced (above).
Person contacted: Fran O’Connor
Statute § 526(a) “NAIC AP&P Manual”
The Insurance Department believes that the wording of the existing statute provides for the adoption of Codification without additional activity.
Person contacted: Fred Townsend
Statute § 35-3401
“NAIC AP&P Manual... Mayor has power to make modifications/
additions in financial statement forms”
All insurers will be notified by bulletin that Codification will become effective on 1/1/2001. The City Council will be contacted as well to let them know about the new manual. The Insurance Department has compared Codification to existing statutory requirements and does not believe that any major inconsistencies exist.
Person contacted: Thomas Hampton