NAIC recognizes A.M. Best Co. as NRSRO.A task force of the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. has approved the addition of A.M. Best Co. to the NAIC's list of Nationally Recognized Statistical Rating Organizations at the group's Spring National Meeting. In March 2005, A.M. Best received notification that it was recognized as an NRSRO NRSRO Nationally Recognized Statistical Rating Organization by the Division of Market Regulation of the U.S. Securities and Exchange Commission. As a result of the recognition, Best's Credit Ratings may be used when distinguishing levels of creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. required under numerous federal and state laws. A.M. Best applied to be added to the list after it was granted NRSRO status, the NAIC NAIC See National Association of Investors Corporation (NAIC). said. The NAIC's valuation of securities task force approved the addition of A.M. Best, bringing the NAIC's list to five. A.M. Best joins Moody's, Standard & Poor's, Fitch and Dominion Bond Rating Service Dominion Bond Rating Service is a credit rating agency based in Toronto, Ontario. Founded in 1976, it is one of the largest credit rating agencies in Canada. It is one of five Nationally Recognized Statistical Rating Organizations in the United States, though significantly smaller . Insurance regulators allow most securities bought by insurance companies and rated by an NRSRO to qualify as filing exempt, the NAIC said. Filing exempt securities allow insurers to report these holdings to regulators without submitting them to the securities valuation office, the NMC NMC Nursing & Midwifery Council (UK) NMC NSSDC Master Catalog (NASA) NMC Northwestern Michigan College (Traverse City, Michigan) NMC National Meteorological Center said. "State regulators continually seek ways to gain efficiencies and leverage the credit assessment work done by others such as the NRSRO to preserve limited SVO resources," Howard Mills, chairman of the valuation of securities task force and New York's insurance superintendent, said in a statement. A.M. Best began publishing credit ratings in 1999 for corporate debt, preferred stock and commercial paper as an extension of its expertise in providing Financial Strength Ratings and evaluations for insurance companies since its founding in 1899. The task force also considered the cost of adding A.M. Best to the NAIC computer systems that track and verify how ratings of organizations are converted into the NAIC designations that are reported by insurance companies to state insurance regulators. "The NAIC has a long-standing and valuable relationship with A.M. Best and issues discussed by the task force had been adequately addressed," Jim Poolman, vice chairman of the task force and North Dakota insurance commissioner The North Dakota Insurance Commissioner regulates the insurance industry in North Dakota, licenses insurance professionals in the state, educates consumers about different types of insurance, and handles consumer complaints. , said in a statement. |
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