Maintaining its position that such measures are unwarranted for mutual insurers, the National Association of Mutual Insurance Companies (NAMIC) was not part of an industry interested parties’ group submitting an alternate proposal about added internal accounting control to the National Association of Insurance Commissioners (NAIC) Friday.
The alternate proposal responds to a key regulator’s request to industry to formulate its own version of what might be added to state solvency regulation of insurers in emulation or adaptation of Section 404 of the Sarbanes-Oxley Act of 2002. That element of the Act prescribes expensive new accounting controls for those companies—insurers and others—regulated by the SEC.
Based on analysis of what species of companies exhibited those failures in accounting integrity that were impetus for the Act and on the expense of those measures prescribed in it, NAMIC’s policy-making bodies had voted on several occasions that the added measures are unwarranted for mutual insurers.
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