Insurance Regulators

Rector & Associates can assist insurance regulators with any type of insurance regulatory issue in all sectors of the insurance industry. With significant public sector (department of insurance and NAIC) and private sector experience, R&A’s staff are uniquely familiar with the current issues facing regulators. R&A tailors its services to the assistance that the regulator needs, managing an effort or supplementing the regulator’s staff.

Troubled Company and Receivership Services

Rector & Associates provides a wide range of services to insurance regulators in connection with troubled companies, including the following:

• Performing targeted examination procedures to determine true financial condition
• Determining statutory accounting values of invested assets and deferred tax assets
• Evaluating catastrophe reinsurance programs or adverse development covers
• Providing financial advice and accounting support to a deputy receiver
• Evaluating the viability of RBC corrective action plans
• Developing appropriate solutions when enforcement or administrative action is initiated
• Providing services in connection with conservations, rehabilitations and liquidations, including acting as supervisor or advising creditors or affiliates of a company in conservatorship, rehabilitation or liquidation
• Assisting with “troubled company” issues, identifying relevant issues and appropriate regulatory responses, and preparing and evaluating problem-solving plans

Risk-Focused Financial Examination Services

Rector & Associates can perform all facets of risk-focused financial examinations on behalf of insurance regulators in any state. Because of the financial staff’s extensive experience with the NAIC Accreditation Program, the firm is in a unique position to perform examinations in accordance with the Accreditation Standards. In addition, Rector & Associates can provide the following services in connection with risk-focused financial examinations:

• Performing an independent review of an insurer’s risk profile and prospective risks
• Advising on the integration of financial analysis and examination processes
• Evaluating an insurer’s compliance with the Model Audit Rule
• Assessing compliance with NAIC Accreditation Standards
• Assisting examination in-charge (EIC) in conducting C-Level interviews

Operational Examination Services

Because of its combination of consultants with law, finance, accounting and actuarial science expertise, Rector & Associates can provide a unique range of targeted financial and market conduct examination services, including the following:

• Assessing insurers’ policy issuance and claims processing operations for all types of insurers, including underwriting, rating, and claims handling operations
• Examining the claims handling and financial condition of workers’ compensation insurance funds
• Examining the effectiveness of data collection systems used to develop pure premium rate and rating classifications
• Examining the claims handling and financial condition of guaranty associations

Blue Cross/Blue Shield Assessments

Rector & Associates has specific experience and expertise with financial and operational analyses of Blue Cross/Blue Shield plans, including the following:

• Assisting in determining whether a Blue Cross/Blue Child plan has excessive policyholders’ surplus
• Evaluating the potential financial and market impact of hospital or provider agreements with a BlueCross/Blue Shield plan

Regulatory Transaction Advisory Services

Rector & Associates can assist insurance regulators with reviews of any type of regulatory filing, including evaluating the following:

• Form A filings ̶̶̶— analyzing projected financial operations and determining whether acquisition complies with insurance holding company standards
• Form D filings ̶̶̶— analyzing the reasonableness and fairness of, among other types of transactions, inter-company and affiliated reinsurance agreements
• Extraordinary dividend requests ̶̶̶— analyzing proposed pro forma financial statements to determine financial soundness of insurer post-dividend

Actuarial Services

Rector & Associates can provide a wide range of property/casualty and health actuarial services for regulators, including the following:

• Evaluating reserves in connection with financial examinations
• Reviewing rate filings
• Performing special actuarial projects