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NAIC Filing Exemption (FE ) Rule

NAIC Filing Exemption (FE ) Rule. What is FE? A new rule adopted by the NAIC which grants exemption from filing with the SVO for bonds and preferred stock that have been assigned a current, monitored rating by an NRSRO. When did FE become effective? January 1, 2004. File Or Not File?.

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NAIC Filing Exemption (FE ) Rule

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  1. NAIC Filing Exemption (FE ) Rule • What is FE? A new rule adopted by the NAIC which grants exemption from filing with the SVO for bonds and preferred stock that have been assigned a current, monitored rating by an NRSRO. • When did FE become effective? January 1, 2004

  2. File Or Not File? Does Not Need to be Filed: • Short-Term Investments (<1 year maturity) • U.S. Government direct obligations and “Full Faith and Credit” U.S. Government Agencies • Schedule BA Assets • “FE” – Filing Exempt Securities

  3. Filing Exempt - FE • Bonds – Rated and monitored by one or more NRSRO • Preferred Stocks – Rated and monitored by one or more NRSRO • Common Stock – - Not restricted in transferability of ownership - Listed on NYSE, AMEX, or NASDAQ

  4. NRSRO • NRSRO stands for Nationally Recognized Statistical Rating Organization. • Rating Organizations currently on the NAIC’s NRSRO list: Moody’s, S&P, Fitch, and DBRS.

  5. Must Be Filed • All bonds and preferred stocks not “FE” eligible • Private Placement Securities • Common stock for which a price is wanted • Subsidiary Securities

  6. Filing With The SVO • Within 120 days of purchase • Use ISIS • Obtain ATF • Eliminates multiple filings of same security • Annual Updates

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