4 - Financial Surveillance & Company Licensing
The primary mission of the Financial Surveillance and Company Licensing Section is to monitor the financial solvency of insurers participating in the Massachusetts domestic insurance marketplace in order to provide a healthy and competitive insurance market.
|•||Monitor the solvency of all insurance companies domiciled in the Commonwealth of Massachusetts. Complete quarterly and annual analysis of all files within the deadlines delineated in the NAIC Accreditation Guidelines. Hold annual meetings with senior company management, Audit Committees, and Boards of Directors.||Complete|
|•||Maintain Accreditation by the National Association of Insurance Commissioners (NAIC). The NAIC Accreditation program provides a process whereby solvency regulation of multi-state insurance companies can be enhanced and adequately monitored with an emphasis on: adequate solvency laws and regulations in place to protect consumers as well as guarantee funds; effective and efficient financial analysis and examination processes; and, appropriate organizational and personnel practices.||Complete|
|•||Process license applications - including license amendment applications - from insurance companies seeking to transact insurance business in the Commonwealth to provide for a solvent and competitive insurance market.||Complete|
|•||Oversee transactions such as mutualizations, demutualizations, issuance of surplus contribution notes, issuance of capital, mergers & acquisitions, quasi-reorganizations, additional reserving requirements, good corporate governance practices, and prudent conservative accounting standards.||Complete|
4.3 Primary Activities
The Financial Surveillance and Company Licensing staff processes license certifications, analyzes annual statement filings and manages other revenue collections that resulted in approximately $600,000 in revenue in 2008.
The Company Licensing staff reviews and processes all applications from insurers seeking to obtain or amend licenses to transact insurance business in the Commonwealth.
The Section evaluated license and amended license applications for companies desiring to establish or expand an insurance business in Massachusetts in accordance with Massachusetts law and regulations. The Division participates in the NAIC Uniform Certificate of Authority application process. The UCAA application consists of fourteen parts that allow the Division to review the applicant's solvency, management team, and experience in the insurance industry. Information compiled by the NAIC, as well as input from the domestic regulators, is included in the review process.
During 2008, the Financial Surveillance Unit issued twenty-five new insurance company licenses, twenty-seven amended insurance company licenses, approved nine companies as authorized surplus lines insurers, approved two companies as accredited reinsurers, and issued a Certificate of Authority to one home warranty company.
Property & Casualty Insurers
Life, Accident & Health Insurers
Accident Fund General Insurance Company
Accendo Insurance Company
Acceptance Indemnity Insurance Company
Accident Fund National Insurance Co.
Brokers National Life Assurance Co.
Alamance Insurance Company
AIG Advantage Insurance Company
Envision Insurance Company
Century Surety Company
Allied World National Assurance Co.
Security Life Ins. Co. of America
Cincinnati Specialty Underwriters Ins Co.
AutoOne Insurance Company
SilverScript Insurance Company
CUMIS Specialty Insurance Company
Berkshire Hathaway Assurance Corp.
United Security Assurance Company of PA
Guilford Insurance Company
Employers Security Insurance Company
Unity Financial Life Insurance Co.
Omega US Insurance Inc.
Generali US Branch
Prime Insurance Company
Guarantee Co. of North America USA
Protective Specialty Insurance Company
Homesite Insurance Co. of the Midwest
Boston Medical Center Health Plan, Inc.
Hospitality Mutual Insurance Company
Home Warranty Companies
PACO Assurance Company, Inc.
AMT Warranty Corporation (Home Warranty)
Premier Group Insurance Company
Guardian National Title Insurance Company
Progressive Commercial Casualty Company
Progressive Direct Insurance Company
Congress Life Insurance Co.
Tri-State Insurance Company of Minnesota
Starr Indemnity & Liability Co. (fka Republic)
Union Standard Insurance Co.
Utica First Insurance Company
Property & Casualty Insurers
Life, Accident & Health Insurers
American Pet Insurance Company, Inc.
Massachusetts Homeland Insurance Company
New York Life Insurance Company
Bay State Insurance Company
Merrimack Mutual Fire Insurance Company
Berkley Regional Insurance Company
Midwest Employers Casualty Company
Sparta Insurance Company
National Casualty Company
Cambridge Mutual Fire Insurance Co.
ProCentury Insurance Company
Fidelity National Insurance Company
Sompo Japan Insurance Co. of America
General Fidelity Insurance Company
State National Insurance Company
Great Divide Insurance Co.
Technology Insurance Company
Heritage Casualty Insurance Co.
Vermont Mutual Insurance Company
Hiscox Ins. Co. (fka American Livestock Ins. Co.)
Wesco Insurance Company
Hudson Insurance Company
Westport Ins Corp (Employers Reins Corp)
Jefferson Insurance Company
Western Diversified Casualty Insurance Company
Main Street America Assurance Company
Zale Indemnity Company
4.4 Special Activities
There were several new Massachusetts domestic insurers created and licensed during 2008. These included the following:
· Employers Security Assurance Company
Employers Security Assurance Company received their Certificate of Authority on January 17, 2008
· Hospitality Mutual Insurance Company
Hospitality Mutual Insurance Company received their Certificate of Authority on June 30, 2008.
· Boston Medical Center Health Plan
Boston Medical Center Health Plan received a conditional Certificate of Authority on October 31, 2008.
· John Hancock Life & Health Insurance Company
John Hancock Life & Health Insurance Company applied to redomesticate from Delaware to Massachusetts. This transaction was approved and the company redomesticated to Massachusetts effective January 1, 2009.
There were several Massachusetts domestic insurers involved in significant transactions during 2008. These included the following:
· Great-West Healthcare of Massachusetts, Inc.
Great-West Healthcare of Massachusetts, Inc., surrendered their Certificate of Authority effective January 11, 2008.
· Berkshire Mutual Insurance Company
Berkshire Mutual Insurance Company surrendered their Certificate of Authority effective October 20, 2008.
· First Allmerica Financial Life Insurance Company
First Allmerica Financial Life Insurance Company was acquired by Commonwealth Annuity and Life Insurance Company in a transaction that was approved by the Division on December 30, 2008. The transaction closed January 2, 2009.