Naic covid 19 information request template eversheds (73.72 KB)

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Summary

COVID-19 Information Request Template
This template is developed for purposes of state insurance department use in collecting information from U.S

insurance groups and legal entities (hereafter “companies”) on their preparation for and exposure to the novel
coronavirus known as COVID-19. Companies are asked to provide complete and accurate responses to the
relevant sections of the request to facilitate effective regulatory review and to reduce the need for additional
requests

The template is prepared such that it can be submitted on a group basis to the Lead State regulator (if applicable),
although certain requests are required to take legal entity impacts into consideration (see Questions 7 & 8 in
Financial Impact). Information received through the template will be treated as confidential and will be shared
with other state insurance departments through the NAIC's Master Information Sharing and Confidentiality
Agreement to reduce the need for duplicative and overlapping information requests

Group Name/Insurer Name (if not in a group)
NAIC Group Code/Cocode (if not in a group)
Lead State/Domestic State (if not in a group)
Cocodes Covered in this Response (if completed
at group level)
Respondent Name
Respondent Title
Email Address
Phone #
1
Operational Impact of COVID-19
Questions in this section of the template relate to the operational impact of COVID-19 and steps taken by
companies to implement an effective Business Continuity Plan (BCP) and/or COVID-19 response plan to support
ongoing operations

Request/Question Company Response
Please provide an overall summary of steps that
have been or will be taken to address the
operational impacts of COVID-19 on the company,
1
including any recent updates to the company's BCP
and/or the development of a COVID-19 response
plan

Please discuss the long-term sustainability of the
company's BCP and/or COVID-19 response plan in
2 relation to its impact on the company's cost
structure and ability to fulfill its strategic business
plan

Please discuss the ability of the company to
provide continuous service to policyholders and
3 maintain critical operations in the event that
employees are unavailable or working remotely for
extended periods of time

Please discuss the ability of the company's
cybersecurity program to address cyber risks that
4 may emerge from COVID-19, including a potential
increase in the number of remote workers and
cyber attacks

Please discuss the ability of third-party service
providers and suppliers to provide ongoing service
5 for maintaining critical operations, as well as the
level of ongoing monitoring and oversight provided
by the company in this area

Please discuss the company's plan for facilitating
effective communication with consumers, vendors,
6 and employees regarding the impacts of COVID-19,
as well as the process by which questions and
inquiries can be submitted and addressed

Please discuss the governance and oversight of the
company's BCP and/or COVID-19 response plan,
7 including the critical members of the response
team, as well as the process to ensure ongoing
review and updates

2
Financial Impact of COVID-19
Questions in this section of the template relate to the financial impact of COVID-19 on company solvency and
steps taken by companies to both assess their exposures and address any concerns identified

Request/Question Company Response
Has the company conducted formal stress tests (or
run scenarios in pandemic models) that address the
potential financial impacts of COVID-19 (or a similar
1
pandemic event) and the related economic
downturn on the company's solvency and liquidity
position?
If yes, please summarize the results of the most
recent stress tests and provide a description of the
1a
material assumptions used and processes followed
in developing the results

If no, please summarize the potential range of
effects that COVID-19 and the related economic
1b downturn could have on the company's overall
financial position including premiums, underwriting
income, net income, capital and liquidity

Discuss the potential range of effects that COVID-19
exposures could have on the company's claim
2
frequency and severity, including its projected loss
ratios

Discuss any specific lines of business or products
(e.g. health insurance, travel insurance, event
cancellation, credit insurance, business interruption,
3 workers compensation, medical stop loss, pandemic
reinsurance) that could be significantly impacted by
COVID-19 and any critical factors and considerations
relevant to evaluating these exposures

Discuss the potential impact that the recent market
downturn and changes in interest rates could have
on the company's invested asset portfolio, liquidity
4 and overall performance. In so doing, please discuss
any material asset classes with the potential to be
significantly impacted on both a short-term and
long-term basis

Discuss the potential effect of any reinsurance
coverage in place to mitigate the impact of COVID-
5
19, including coverage terms, limits and reinsurers
utilized

3
Request/Question Company Response
Discuss the potential effect that current or proposed
government mandates related to COVID-19 (e.g

required coverage, extension of terms) and/or
6 voluntary actions taken by the company (e.g

waiving copays, premium grace periods, return of
premium) could have on the company's solvency or
liquidity position

If this template is completed on a group basis,
discuss the potential impact of COVID-19 and the
related economic downturn on the ability of any
7
individual insurance entities to meet their ongoing
RBC requirements, maintain sufficient liquidity and
avoid entering into a hazardous financial condition

Discuss any potential actions (e.g. suspension of
dividends, capital infusion, drawing on line of credit,
asset sales) the company is prepared to take to
8
address solvency or liquidity needs resulting from
the impacts of COVID-19 on both a group and legal
entity basis (if relevant)

COVID-19 Information Request Template This template is developed for purposes of state insurance department use in collecting information from U.S. insurance groups and legal …