D.C. Adopts Regulation for Required Corporate Governance Annual Disclosure
D.C. Adopts Regulation for Required Corporate Governance Annual Disclosure (CGAD) Filings
D.C. Adopts Regulation for Required Corporate Governance Annual Disclosure (CGAD) Filings
On March 11, 2022, the District of Columbia (D.C.) Department of Insurance, Securities, and Banking (DOI) published a Notice of Final Rulemaking to implement provisions of D.C. Act A24-150, Insurer Corporate Governance Annual Report Act of 2021 (Bill B24-225), which became effective on September 22, 2021. The amendments within the final rulemaking took effect upon publication.
According to the Act, each insurer, or the insurance group of which the insurer is a member, domiciled in the District shall submit a Corporate Governance Annual Disclosure (CGAD) to the Commissioner by June 1 of each calendar year. The CGAD filing will serve as an insurer’s annual report describing the insurer’s or insurer’s group’s corporate governance structure, policies, and practices.
By way of background, the National Association of Insurance Commissioners (NAIC) adopted the Corporate Governance Annual Disclosure Model Act and Regulation (Model #305/Model #306) in late 2014 in order to facilitate deeper insight about insurers’ corporate governance practices. The NAIC models do not establish new corporate governance standards; they require confidential reporting to ensure appropriate and effective practices are in place. To date, the Model Law and the Model Regulation, or both, have been adopted in almost every U.S. jurisdiction.
For insurers domiciled within D.C., the first CGAD filing is due no later than June 1, 2022. The information required for the filing is outlined within section 2513 of the adopted amended regulation.