1. FEDERAL INVOLVEMENT IN INSURANCE REGULATION MODERNIZATION AND HEALTH CARE REFORM TASK FORCE PREPARED BY FRANCINE L. SEMAYA & ALAN N. GAMSE OCTOBER, 2013 1

2. FIIRM/HCR TASK FORCE  Who are we?  What are we doing?  What is our relevance to TIPS and its members?  What have we accomplished?  What are we working on now?  What does the future hold? 22

3. WHO ARE WE? Task Force created by Jim Carroll in August 2004. Initially called “Task Force on Federal Regulation” In October 2004 at the TIPS Fall Meeting name changed to Federal Involvement in Insurance Regulation Modernization Task Force (“FIIRM”). Health Care Reform Task Force merged into FIIRM in 2011. 3

4. CURRENT MEMBERSHIP OF TASK FORCE Reporter:Open Legal and Regulatory Consultant Francine L. Semaya – Chair Academic: Jeffrey Thomas – Professor (University of Missouri Law School – Kansas City) Regulator: Alan Rachlin (New York Department of Financial Services) 4

5. CURRENT MEMBERSHIP OF TASK FORCE Insurers and Insurer Representatives: Timothy Penn (St. Paul Travelers) Michelle Dicks (OwnerGuard) Edward Collins (Allstate Insurance) Craig Berrington (retired from AIA) Leo J. Jordan (retired State Farm) Kathleen Wharton (retired from CCIA) 5

6. WHO ARE WE? (CONT’D) Law Firm: Alan N. Gamse – Chair-Elect (Semmes, Bowen & Semmes) Anthony MacCauley – Worker’s Comp (Hanna Brophy) Briana Montminy – (Burr & Forman, LLP) Ginger S. Busby - (Burr & Forman, LLP) Joshua Bachrach – (Wilson Elser Moskowitz Edelman & Dicker) Keith Hopkinson - (Winstead PC) Kelly A. Cruz-Brown - (Carlton Fields) Russell Buhite - (Fowler White Boggs PA) Laurie Sands - (Riker Danzig, et al) Robin Sanders - (Jorden Burt LLP) Sandra Tvarian Stevens – (Wiley Rein LLP) 6

7. CURRENT MEMBERSHIP OF TASK FORCE Ex Officio Trade Association Representatives: JS “Stef” Zielezienski – American Insurance Assoc. Wes Bissett – Bellemore Group ( former IIAA) Matt Wulf– Reinsurance Association of America Lenore S. Marema (Surety Association) 7

8. WHAT ARE WE DOING? Initial Charge to Study and Report on 2004 “State Modernization and Regulatory Transparency Act” (“SMART”) Dodd Frank (2010) Federal Insurance Office (“FIO”) Financial Stability Oversight Council (“FSOC”) Federal Advisory Committee on Insurance (“FACI”) Nonadmitted and Reinsurance Reform Act of 2010 Terrorism Risk Insurance Act (TRIA / TRIAE) 8

9. WHAT ARE WE DOING? National Flood Insurance Program Health Insurance Reform (PPACA) Medicare Secondary Payer Support McCarran Ferguson Other Federal Initiatives impacting Regulation of Insurance 9

10. DODD - FRANK  Report to Council on Impact of Dodd-Frank Act on Insurance Industry  Coordinate with ABA Task Force on Financial Markets Regulatory Reform  FIO Recommendation and Report to ABA HOD in February, 2010  Prepare Comment Letter to Secretary of Treasury on FIO Study on “How to Modernize & Improve the System of Insurance Regulation in US” 10

11. DODD - FRANK  Comment Letter sent to Michael McRaith, Director of Federal Insurance Office, on August 27, 2012 on “Global Reinsurance Market”  Monitor Rules being promulgated under Dodd-Frank that impact Insurance and Reinsurance  Keep TIPS updated on Developments  Update Task Force Website 11

12. HEALTH CARE REFORM  Monitor Supreme Court PPACA Litigation  Present TIPS Webinar on PPACA Litigation  Prepare and Update Health Insurance Exchange Map  Articles on Health Care Reform  Co-Sponsor CLE Programs on Health Care Reform 12

13. TERRORISM RISK INSURANCE ACT (TRIA / TRIAE)  Prepared “White Paper” that was adopted by TIPS Council.  TRIA Recommendation and Report to ABA HOD in February 2007.  Adopted as ABA Policy.  Met with Senators, Representatives and/or Senior Staff to explain ABA policy on TRIA Reauthorization.  Work with NAIC/State Insurance Regulators on TRIA policy.  Work on proposal to extend TRIAE beyond 2014. 13

14. WHAT IS THE TASK FORCE’S RELEVANCE TO TIPS AND ITS MEMBERS? TIPS Exposure – National and International Recognition Educate TIPS Members on Federal Impact on Insurance and Health Care Regulatory Issues Develop Policy on Insurance Regulatory Issues to be adopted by the ABA 14

15. WHAT HAVE WE ACCOMPLISHED?  ABA Policy on TRIA Reauthorization  ABA Policy on the Role of FIO  Blanket Authority on Proposals regarding State and Federal Insurance Issues.  Insurance Commissioners and NAIC “Reaching Out” to Task Force 15

16. WHAT HAVE WE ACCOMPLISHED?  Informative Task Force Website  CLE Programs and Publications  PPACA Webinar  Articles on PPACA and FIO  Legislative Updates for TortSource 16

17. WHAT ARE WE WORKING ON NOW?  Health Care Reform Monitoring PPACA Developments  Co-Sponsor TIPS Health Care Reform Programs  TRIA Reauthorization 2014  NFIP - developments and written materials 17

18. WHAT ARE WE WORKING ON NOW?  Monitoring & Reporting on International Insurance Regulatory Developments  Monitoring & Analyzing Federal Proposals on Resolution Authority and SIFI designations  Monitoring & Reporting on NAIC activities and decisions  State v. Federal Issues 18

19. WHAT DOES THE FUTURE HOLD?  Analyze & Respond to FIO Reports on State of Insurance Regulation and Reinsurance  Testify as Required under Blanket Authority on Insurance Regulatory Issues 19

20. WHAT DOES THE FUTURE HOLD?  Study New Proposals National Flood Insurance Program TRIA Reauthorization PPACA and other Health Care Reform developments Resolution Authority (US and International Developments Amendments to Dodd-Frank 20