Insurance Regulation and Compliance

NAIC framework, risk-based capital, solvency standards, and regulatory filings.

Key Concepts

• •State-based regulation: the role of state insurance departments
• •NAIC: model laws, accreditation standards, and financial examinations
• •Risk-based capital: NAIC RBC formula and action levels
• •Own Risk and Solvency Assessment (ORSA): internal risk evaluation
• •Rate regulation: prior approval, file-and-use, and use-and-file systems
• •Rate adequacy, excessiveness, and unfair discrimination standards
• •Statutory accounting: SAP vs. GAAP differences for insurance
• •Annual statement: components, schedules, and actuarial certifications
• •Appointed Actuary: responsibilities and Statement of Actuarial Opinion
• •IFRS 17: international accounting standard for insurance contracts

Study Tips

• 1.Focus on understanding the purpose of each regulatory framework.
• 2.Know the key differences between SAP and GAAP for insurance companies.
• 3.Understand the RBC formula components and action levels.
• 4.Review the Appointed Actuary role and responsibilities.
• 5.Study the practical implications of different rate regulation systems.

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