Financial Analysis, Compliance and Other Related Services
A variety of tasks may be required by the Department in each of the five classes of services. The following is a list of services the Department anticipates requiring:
1.
Financial Analysis and Compliance Services
a.
General Financial Analysis Review and recommend appropriate Department action based upon the results of a general financial analysis of a regulated entity. Such analysis is to include, but not be limited to a review of an entitys financial statements and other records; specifically evaluating assets, liabilities, surplus/RBC adequacy, liquidity, operations, reinsurance, management, etc.
b.
Corporate Records Review Review and recommend appropriate Department action on changes in Articles of Incorporation, bylaws, and other corporate records of regulated entities.
c.
Specific Investment Issues Review and recommend appropriate Department action on requests for approval of investments.
d.
Review of Surplus Notes, Certificates of Contribution, and Guaranty Capital Transactions Review and recommend appropriate Department action on requests for approval of surplus note, certificate of contribution, and guaranty capital transactions in accordance with statutory requirements.
e.
Reinsurance Review Review and recommend appropriate Department action on requests for approval of reinsurance transactions and agreements. Such review is to include, but not limited to, an evaluation of the financial impact of the transaction and agreement and compliance with laws and statutory requirements.
f.
Review of Company Special Filings Review and recommend appropriate Department action on various requests requiring approval by the Commissioner. Such requests include, but are not limited to, the addition/deletion of lines of business, assumption reinsurance transactions, reduction/release of statutory deposits, reduction/removal of licensing restrictions, redomestications, relocation of operations out of state, pledging of assets under the Asset Protection Act, and the reduction/release of statutory reserves.
g.
Review of Mergers, Acquisitions and Conversions Review and recommend appropriate Department action on mergers, acquisitions, and conversions considering statutory guidance.
h.
Review of Holding Company Transactions Review and recommend appropriate Department action on excess subsidiary investments, extraordinary dividend requests, Form Ds, and other holding company transactions considering statutory guidance.
i.
Review of RBC Plans Review and recommend appropriate Department action on risk-based capital corrective action plans considering statutory guidance.
j.
Review of Domestic Formations/Initial Applications for Authority to Operate in NC Review and recommend appropriate Department action on the
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formation of new domestic regulated entities as well as other initial applications for authority to operate in North Carolina.
k.
Any other Financial Analysis and Compliance Services Needed Review and recommend appropriate Department action on any other regulated entity filings or issues that may arise.
2.
Investment Services
a.
Investment Portfolio Evaluation Review and opine on regulated entitys investment portfolio, or portions thereof, including valuation, diversification, compliance with North Carolina investment laws, derivative use plans, hedging programs, etc.
b.
Specific Investment Issues Review and recommend appropriate Department action on requests for discretionary approval of investments.
c.
Any other Investment Services Needed Review and recommend appropriate Department action on any other investment filings or issues that may arise. Review and recommend appropriate Department action on existing or new investment laws.
3.
Actuarial Services
a.
Actuarial Work Reserve valuation, Actuarial Review Work
b.
Reinsurance Review Review and opine on reserve valuation, reinsurance assumed and/or ceded, reinsurance contracts and related documents, and any other reinsurance related issues.
c.
Any other Actuarial Services Needed Review, opine on, and recommend appropriate Departmental action on any other filings or issues that may arise.
4.
Reinsurance Services
a.
Reinsurance Review Review and opine on reinsurance contracts and related documents, program adequacy, compliance with laws, risk transfer, reinsurance accounting and reporting, assumption reinsurance transactions, HMO continuation of benefits, and HMO insolvency protection.
b.
Any other Reinsurance Services Needed Review, opine on, and recommend appropriate Departmental action on any other reinsurance filings or issues that may arise.
5.
Agreement Review Services
a.
General Agreement Review Review and recommend appropriate Department action on agreements requiring Commissioner review and/or approval, including MGA agreements, management agreements pursuant to Articles 34 and 67, custodian agreements pursuant to Articles 34 and 67, Self-Insured Workers Comp TPA agreements, service contracts, and any other agreements that may require Department action.
b.
Review of Surplus Notes, Certificates of Contribution, and Guaranty Capital Transactions Review and recommend appropriate Department action on the form of Surplus Notes, Certificates of Contribution, Guaranty Capital, and related documents in accordance with statutory requirements.
c.
Reinsurance Review Review and recommend appropriate Department action on reinsurance contracts and related documents in accordance with statutory requirements.
d.
Review of Company Special Filings Review and recommend appropriate Department action on agreements related to company special filings, including
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requests for approval to add/delete lines of business, enter into assumption reinsurance transactions, reduce/release deposits, no longer abide by license restrictions or increase premium writing above limits, redomesticate, locate operations out of state, pledge assets under the Asset Protection Act, release mortgage insurance statutory contingency reserve, etc. in accordance with statutory requirements.
e.
Review of Mergers, Acquisitions, Consolidations, and Conversions Review and recommend appropriate Department action on agreements related to mergers, acquisitions, consolidations, and conversions in accordance with statutory requirements.
f.
Review of Holding Company Transactions Review and recommend appropriate Department action on agreements related to holding company transactions, such as excess subsidiary investments, extraordinary dividend requests, Form Ds, and other holding company transactions considering statutory guidance.
g.
Review of RBC Plans - Review and recommend appropriate Department action on agreements related to risk-based capital corrective action plans.
h.
Review of Domestic Formations/Initial License Applications Review and recommend appropriate Department action on agreements relating to the formation of new domestic regulated entities as well as other initial applications for authority to operate in North Carolina in accordance with statutory requirements.
i.
Any other Agreement Review Services Needed Review and recommend appropriate Department action on any other agreements that may require Department action.
