In recent years, there has been significant discussion on聽group supervision. The collective聽state insurance departments聽(through the聽不良研究所官方) have been further developing their lead state concept and have incorporated aspects of this concept into state insurance law. Specifically, the 不良研究所官方聽Insurance Holding Company System Regulatory Act (#440)聽and the聽Risk Management and Own Risk and Solvency Assessment (RMORSA) Model Act (#550)聽refer to filing certain reports with the lead state commissioner. The Lead State is generally considered to be the one state that 鈥渢akes the lead鈥 with respect to conducting group-wide supervision within the U.S. solvency system. The concept of Lead State is not intended to relinquish the authority of any state, nor is it intended to increase any state鈥檚 statutory authority or to put any state at a disadvantage. It is intended to facilitate efficiencies when one state coordinates the regulatory processes of all states involved.
A decision of a Lead State encompasses input from all domestic state insurance regulators of the group where a majority of such domestic states must agree to the decision.. The determination of a Lead State is impacted by the following factors:
- The state with the largest market share by direct premiums written
- Domiciliary state/country of top-tiered insurance company in an insurance holding company system
- Physical location of the main corporate offices or largest operational offices of the group
- Knowledge in distinct areas of various business attributes and structures
- Affiliated arrangements or reinsurance agreements
In order to assist with identifying the lead state for all groups that hold more than one U.S. insurer, the Lead State report is available for use in submitting the Enterprise Risk Report (Form F).