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Division of Financial Regulation briefs MLAC on insurer oversight and assigned-risk process
Summary
DFR staff described the division's role in licensing insurers, reviewing forms and rates, monitoring solvency, and coordinating the assigned risk servicing carrier selection and pure premium rate-making with NCCI; presenters noted DFR's support role for WCD on insurance-related policy.
Eric Bredesen, property and casualty product regulation manager at the Division of Financial Regulation (DFR), and Paul Throckmorton, chief analyst in DFR—s Insurance Institution Division, provided a high-level overview of DFR's functions and how they intersect with workers' compensation policy.
Bredesen explained that DFR reviews insurance forms and rates for compliance and fairness, licenses companies and producers, and oversees consumer assistance and market conduct. Throckmorton described insurer licensing and financial surveillance, noting workers' compensation insurers must meet statutory minimum capital and ongoing filing requirements; he said the licensing review covers financial strength, business plans, capital and corporate governance. Both presenters described DFR's role in coordinating the assigned risk servicing carrier selection (an RFP process administered by NCCI with DFR oversight) and the pure premium rate-making process where DFR actuaries review filings submitted by NCCI.
Why it matters: DFR—s oversight affects insurer solvency, market access for employers seeking coverage, and the actuarial basis for premium rates. Committee members said the presentation clarified the regulatory distinctions between DFR (insurance oversight) and WCD (claims and benefits administration).
