On October 24, 2018, Pennsylvania signed into law Senate Bill 1205, which adopts the NAIC Corporate Governance Annual Disclosure (“CGAD”) Model Act.
Beginning June 1, 2020, all Pennsylvania domiciled insurers, as well as insurance groups of which Pennsylvania is the lead state, must file annual reports detailing the company’s corporate governance framework, policies, and practices.
There are no exemptions for any insurer and the Pennsylvania Insurance Department will not issue a specific form or format in which the filing should be structured. Instead, insurers will create their own description and documentation of their company’s governance.
Though very similar to the NAIC Model Act, Pennsylvania’s SB 1205 differs from the NAIC Model Act by considering premium volume, licensing status, and corporate complexity during the Pennsylvania Insurance Department’s evaluation of the CGAD filings.
For any questions regarding Pennsylvania’s new Corporate Governance Annual Disclosure, or any other reporting requirements, please contact Westmont Associates, Inc.
Westmont Associates, Inc. tracks developments affecting the insurance industry, in addition to our other services. If you have any questions, please contact us.