| (a) Enterprise Risk Report is required as follows.
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(b) The registrant/applicant, to the best of its knowledge
and belief, must provide information regarding the following areas
that could produce enterprise risk as defined in §7.202 of this
title (relating to Definitions), provided such information is not
disclosed in the Insurance Holding Company System Annual Registration
Statement filed on behalf of itself or another insurer for which it
is the ultimate controlling person:
(1) any material developments regarding strategy, internal
audit findings, compliance, or risk management affecting the insurance
holding company system;
(2) acquisition or disposal of insurance entities and
reallocation of existing financial or insurance entities within the
insurance holding company system;
(3) any changes of shareholders of the insurance holding
company system exceeding 10 percent or more of voting securities;
(4) developments in various investigations, regulatory
activities, or litigation that may have a significant bearing or impact
on the insurance holding company system;
(5) business plan of the insurance holding company
system and summarized strategies for the next 12 months;
(6) identification of material concerns of the insurance
holding company system raised by supervisory college, if any, in the
last year;
(7) identification of insurance holding company system
capital resources and material distribution patterns;
(8) identification of any negative movement, or discussions
with rating agencies which may have caused, or may cause, potential
negative movement in the credit ratings and individual insurer financial
strength ratings assessment of the insurance holding company system
(including both the rating score and outlook);
(9) information on corporate or parental guarantees
throughout the holding company and the expected source of liquidity
should the guarantees be called; and
(10) identification of any material activity or development
of the insurance holding company system that, in the opinion of senior
management, could adversely affect the insurance holding company system.
(c) The registrant/applicant may attach the appropriate
form most recently filed with the U.S. Securities and Exchange Commission,
provided the registrant/applicant includes specific references to
those areas listed under subsection (b) of this section for which
the form provides responsive information. If the registrant/applicant
is not domiciled in the U.S., it may attach its most recent public
audited financial statement filed in its country of domicile, provided
the registrant/applicant includes specific references to those areas
listed under subsection (b) of this section for which the financial
statement provides responsive information.
(d) If the registrant/applicant has not disclosed any
information under subsection (b) of this section, the registrant/applicant
must include a statement affirming that, to the best of its knowledge
and belief, it has not identified enterprise risk subject to disclosure
under subsection (b) of this section.
(e) As added by §18 of Acts 2011, 82nd Leg., ch.
922 (S.B. 1431), the commissioner of insurance has determined that
the National Association of Insurance Commissioners has completed
an enterprise risk form and has proposed a master confidentiality
agreement.
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