Kentucky Statutes 304.37-055 – Supervisory colleges for certain domestic insurers — Powers of commission
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(1) With respect to any insurer registered pursuant to KRS § 304.37-020, and in accordance with subsection (3) of this section, the commissioner shall have the authority to participate in a supervisory college for any domestic insurer that is part of an insurance holding company system with international operations in order to determine compliance by the insurer with this subtitle. The powers of the commissioner with respect to supervisory colleges include, but are not limited to:
(a) Initiating the establishment of a supervisory college;
(b) Clarifying the membership and participation of other supervisors in the supervisory college;
(c) Clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a groupwide supervisor;
(d) Coordinating the ongoing activities of the supervisory college, including planning meetings, supervising activities, and establishing processes for information sharing; and
(e) Establishing a crisis management plan.
(2) Each registered insurer subject to this section shall be liable for and shall pay the reasonable expenses of the commissioner’s participation in a supervisory college in accordance with subsection (3) of this section, including reasonable travel expenses. For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the commissioner may establish a regular assessment to the insurer for the payment of these expenses.
(3) In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes, and as part of the examination of individual insurers in accordance with KRS § 304.37-040, the commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal, and international regulatory agencies. The commissioner may enter into agreements in accordance with KRS § 304.37-050 providing the basis for cooperation between the commissioner and the other regulatory agencies, and the activities of the supervisory college. Nothing in this section shall delegate to the supervisory college the authority of the commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction.
Effective: July 15, 2014
History: Created 2012 Ky. Acts ch. 74, sec. 12, effective July 15, 2014.
(a) Initiating the establishment of a supervisory college;
Terms Used In Kentucky Statutes 304.37-055
- Commissioner: means :
(a) The commissioner of insurance of this state. See Kentucky Statutes 304.37-010 - Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Domestic: when applied to a corporation, partnership, business trust, or limited liability company, means all those incorporated or formed by authority of this state. See Kentucky Statutes 446.010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Groupwide supervisor: means the regulatory official authorized to engage in conducting and coordinating groupwide supervision activities in accordance with KRS §. See Kentucky Statutes 304.37-010
- Insurance holding company system: means two (2) or more affiliated persons, one
(1) or more of which is an insurer. See Kentucky Statutes 304.37-010 - Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Supervisory college: means a forum for cooperation and communication between the involved supervisors established for the fundamental purpose of facilitating the effectiveness of supervision of entities which belong to an insurance group and facilitating both the supervision of the group as a whole on a groupwide basis and improving the legal entity supervision of the entities within the insurance group. See Kentucky Statutes 304.37-010
(b) Clarifying the membership and participation of other supervisors in the supervisory college;
(c) Clarifying the functions of the supervisory college and the role of other regulators, including the establishment of a groupwide supervisor;
(d) Coordinating the ongoing activities of the supervisory college, including planning meetings, supervising activities, and establishing processes for information sharing; and
(e) Establishing a crisis management plan.
(2) Each registered insurer subject to this section shall be liable for and shall pay the reasonable expenses of the commissioner’s participation in a supervisory college in accordance with subsection (3) of this section, including reasonable travel expenses. For purposes of this section, a supervisory college may be convened as either a temporary or permanent forum for communication and cooperation between the regulators charged with the supervision of the insurer or its affiliates, and the commissioner may establish a regular assessment to the insurer for the payment of these expenses.
(3) In order to assess the business strategy, financial position, legal and regulatory position, risk exposure, risk management, and governance processes, and as part of the examination of individual insurers in accordance with KRS § 304.37-040, the commissioner may participate in a supervisory college with other regulators charged with supervision of the insurer or its affiliates, including other state, federal, and international regulatory agencies. The commissioner may enter into agreements in accordance with KRS § 304.37-050 providing the basis for cooperation between the commissioner and the other regulatory agencies, and the activities of the supervisory college. Nothing in this section shall delegate to the supervisory college the authority of the commissioner to regulate or supervise the insurer or its affiliates within its jurisdiction.
Effective: July 15, 2014
History: Created 2012 Ky. Acts ch. 74, sec. 12, effective July 15, 2014.