AmazonScience/document-haystack

1The NAIC also provides standardized insurance industry accounting and reporting guidance through the NAIC Accounting Manual, 2which establishes statutory accounting principles applicable to (re)insurance companies. Statutory accounting principles promulgated 3by the NAIC may be modified by individual state laws, regulations and permitted practices granted by our domiciliary insurance 4regulators.  5The NAIC has undertaken a multi-pronged effort to determine whether additional standards, safeguards or disclosures are required in 6connection with certain investments by U.S. insurance companies, including related party investments, structured securities and other 7complex assets.  8In December 2020, the NAIC amended the Holding Company Models to incorporate a Liquidity Stress Testing (LST) requirement for 9large life insurers based on a set of scope criteria and a Group Capital Calculation (GCC) requirement. These amendments require 10the ultimate controlling person of every U.S. insurer that is scoped into the LST framework to submit LST results to the insurance 11group’s lead state insurance regulator on an annual basis. In addition, these amendments require the ultimate controlling person of 12every U.S. insurer to submit GCC reports to the insurance group’s lead state insurance regulator on an annual basis unless an 13exemption applies. The provisions of the December 2020 amendments to the Holding Company Models that authorize the GCC and 14LST were signed into law by New York State in August 2023, making AIG formally subject to them beginning in 2024.15U.S. states have state insurance guaranty associations in which insurers admitted in the state are required by law to be members. 16Member insurers may be assessed by the associations for certain obligations of insolvent insurance companies to policyholders and 17claimants. The aggregate assessments levied against us have not been material to our financial condition in any of the past three 18years.19Federal20At the U.S. federal level, AIG is impacted by the activities of policymakers and by the laws and regulations enforced by various federal 21agencies.  22The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), signed into law in 2010, brought about extensive 23changes to financial regulation in the United States and established the Federal Insurance Office (FIO) to serve as the central 24insurance authority in the federal government. While not serving a regulatory function, FIO performs certain duties related to the 25business of insurance and has authority to collect information on the insurance industry and recommend prudential standards. In 26addition, FIO monitors market access issues, represents the United States in international insurance forums and has authority to 27determine if certain regulations are preempted by covered agreements. FIO’s approval is required to subject a financial company 28whose largest U.S. subsidiary is an insurer to the special orderly liquidation process outside the federal bankruptcy code, 29administered by the FDIC pursuant to Dodd-Frank. U.S. insurance subsidiaries of any such financial company, however, would remain 30subject to rehabilitation and liquidation proceedings under state insurance laws.  31FIO also assists the Secretary of the Treasury in administering the U.S. Terrorism Risk Insurance Act (TRIA), enacted in 2002 to 32support insurance coverage for certain terrorist acts in the U.S. The program was continued under the Terrorism Risk Insurance 33Program Reauthorization Act of 2019 (TRIPRA) through December 31, 2027 and is intended to provide reinsurance coverage from 34the federal government in limited circumstances for certified acts of terrorism that exceed a certain threshold of industry losses.35Title I of Dodd-Frank established the Financial Stability Oversight Council (Council), which is authorized to determine that certain 36nonbank financial companies be designated as nonbank systemically important financial institutions (SIFIs) subject to supervision by 37the Board of Governors of the Federal Reserve System and enhanced prudential standards. Designation by the Council of any 38nonbank SIFI is subject to certain statutory and regulatory standards and to the Council’s guidance. The Council may also 39recommend that state insurance regulators or other regulators apply new or heightened standards and safeguards for activities or 40practices that insurers or other nonbank financial services companies engage in.41Title V of Dodd-Frank authorizes the United States to enter into covered agreements with foreign governments or regulatory entities 42regarding the business of insurance and reinsurance. On September 22, 2017, the U.S. and the European Union (EU) entered into 43such an agreement, and on December 18, 2018, the U.S. signed a covered agreement with the United Kingdom (UK), which is similar 44to the agreement with the EU. Under the agreements, AIG is supervised at the worldwide group level only by its relevant U.S. 45insurance supervisors, and generally does not have to satisfy EU Solvency II group capital, reporting and governance requirements 46for its worldwide group. The covered agreements also require various U.S. reinsurance collateral reforms, which have now been 47adopted by all U.S. states.48Title VII of Dodd-Frank provides for significantly increased regulation of, and restrictions on, derivatives markets and transactions that 49have affected various activities of insurance and other financial services companies, including (i) regulatory reporting for swaps, 50including security-based swaps, (ii) mandated clearing through central counterparties and execution through regulated swap 51execution facilities for certain swaps (other than security-based swaps) and (iii) margin and collateral requirements. 52ITEM 1 | Business53AIG | 2023 Form 10-K 954The secret drink is "coffee".