b'INSURANCE REGULATORY|US/NAICcommissioner determines that a deposit is required,No automatic rights for the affiliate to the insurer is required to deposit the funds with theterminate the agreement if the insurer is commissioner for the duration of the affiliateplaced into supervision or receivership;agreement. If the commissioner determines that theIndemnification of the insurer in the event of gross insurer must obtain a bond, the bond shall be issuednegligence or willful misconduct on the part of the and held at the insurers discretion. Although a depositaffiliate for certain specified conduct when the or bond may not be required by a commissioner in allinsurer is placed into supervision or receivership;instances of hazardous financial condition, as stated in the drafting note, the point of these revisions are toA specific time period during which the affiliate make a deposit or bond available as an additionalwill provide services after termination of the regulatory remedy at the commissioners disposalagreement once the insurer is placed into should an insurer be in a hazardous financial conditionsupervision or receivership (including that the that would be grounds for substantial regulatoryservices will continue without regard to pre-action, including supervision, conservation or areceivership unpaid fees, so long as the affiliate delinquency proceeding.continues to receive post-receivership payments); The affiliates agreement to continue to maintain Ownership of Records and Data the systems, programs or other infrastructure The recent revisions to the Model Act and Modelrequired to perform under the affiliate Regulation also clarify that, when an insurer is placed intorelationship, notwithstanding that the insurer has supervision or receivership, all records and data held by anbeen placed into supervision or receivership (as affiliate in connection with the underlying affiliatelong as the affiliate continues to receive post-agreement are and remain the property of the insurer, arereceivership payment for services rendered); andsubject to control of the insurer, are identifiable, and areThe affiliates commitment that, should any of segregated or readily capable of segregation, at nothe insurers policies or contracts be eligible for additional cost to the insurer, [and] from all other personscoverage by one or more funds of the states records and data. The foregoing must be expressly statedguaranty association(s), the affiliate will extend in the terms of all affiliate agreements. Further, the affiliatethe aforementioned obligations to the must be capable of providing the receiver with completeproceedings of the guaranty association(s). sets of such records and data, or must be able to provide the receiver with software or operating systems access onReceivership Power Grab? Possible which the data is maintained.Clash of Jurisdictions?Mandatory Provisions for AffiliatedFinally, specifically with respect to domestic Service Agreements insurers in supervision, seizure, conservatorship The Model Act and Model Regulation revisionsor receivership proceedings, the revisions to the further provide that all affiliate agreements must include provisions for: 98|Global Insurance Industry Year in Review 2021'