The Anguilla Financial Services Commission (FSC) has entered into a Memorandum of Understanding (MoU) with the National Association of Insurance Commissioners (NAIC) which provides the basis on which the FSC and the NAIC will provide mutual assistance and exchange of information for the purpose of performing insurance regulatory functions.
Who is the NAIC?
The NAIC is comprised of the chief insurance regulators of the 50 US states, the District of Columbia and the five US territories; it sets industry standards and provides regulatory support on insurance related matters.
Purpose of the MOU
According to the objectives outlined in the MoU, the main purpose of the MoU is to “help insurance supervisors maintain efficient, fair, safe and stable insurance markets in Anguilla and the US for the benefit and protection of policy holders by providing a framework for cooperation [and exchange of information].”
Limitations of the MoU
The MoU expressly states that it does not directly or indirectly create any enforceable right nor does it supersede the laws of Anguilla or the US, rather the MoU is subject to the laws of the relevant jurisdictions.
Key elements of the MoU
- Each authority is required to appoint a contact officer
- Each party agrees to educate their staff on the regulations and insurance practices of the other jurisdiction
- Contact officers or surrogates from the respective authorities must meet at least once a year
- Each authority agrees to periodically provide mutual assistance through:
- training in the host country;
- participation in internships with specific educational focus;
- educational seminars held in the host country;
- provision of training manuals/materials;
- sharing of aggregated industry statistics and other non-confidential information; and
- any other common interest.
- Assistance may be denied on the grounds of public interest
- Any request for assistance under the MoU must be in writing. In urgent cases, the request may be made orally but must be confirmed in writing within 10 days
- Requests must be addressed to the authority's contact person indicated in Annex 1 of the MoU or their designated nomine
- When deciding whether or not to honour a request, the relevant authority will take into account the following matters:
- the laws and regulations of the country;
- whether it is contrary to public interest for the authority or a member thereof, to give the assistance sought; and
- the resources available to the authority for the purposes of dealing with the request.
- While an authority will usually bear its own costs in relation to the provision of the mutual legal assistance under the MoU, the authority has the ability to request that the authority requesting assistance pay some or all of the costs where the costs are substantial
- The conditions under the MoU may be waived or amended by the mutual agreement of each authority in writing; and
- Each authority may terminate the agreement by giving 30 days’ notice.
If you have any questions, please contact Kimberly Seagojo or your usual Harneys contact.