b'Insurance Regulatory | US/NAIC | Insurance Business Transfer and Division Mechanisms The proposal for implementing and administeringand implementation order if it finds that the imple-the IBT plan, including the form of notice to bementation of the IBT plan would not materially provided under the plan to any policyholder whoseadversely affect the interests of policyholders or policy is part of the subject business, and a fullclaimants that are part of the subject business.description as to how such notice shall be provided;The courts judgment and implementation orderA description of any reinsurance arrangementswill include a statutory novation with respect to all that would pass to the assuming insurer under thepolicyholders or reinsureds and their respective IBT plan; policies and reinsurance agreements under theA description of any guarantees or additionalsubject business, providing that the transferring reinsurance that will cover the subject businessinsurer shall have no further rights, obligations or following the transfer and novation;liabilities with respect to such policies, and that theA statement describing the assuming insurers pro- assuming insurer shall have all such rights, obliga-posed investment policies and any contemplatedtions and liabilities as if it were the original insurer third-party claims management and administrationof such policies. arrangements;The NCOIL Model Act also requires the commis- A description of how the transferring andsioner to promulgate regulations that are consistent assuming insurers will be licensed for guarantywith the Model Act, rather than merely authorizing association coverage purpose;the commissioner to do so, and states that no IBTEvidence of approval or non-objection of theplan shall be approved in a state unless and until transfer from the chief insurance regulator of thesuch regulations are promulgated.state of the transferring insurers domicile; and Completion of the First IBT in the US A report from an independent expert (ordinarilyOn October 15, 2020, the Oklahoma County District selected by the commissioner from a list of at leastCourt approved the IBT plan filed by Providence two nominees submitted jointly by the transferringWashington Insurance Company (PWIC), the insurer and the assuming insurer) to assist theapplicant and the transferring insurer, and Yosemite commissioner and the court in connection withInsurance Company (Yosemite), the assuming their review of the proposed IBT plan.insurer. PWIC and Yosemite are both subsidiaries of After the commissioner has reviewed the IBT plan,Enstar Group Limited, the runoff acquisition special-he or she is required to authorize submission of theist. PWIC is a multi-line property and casualty plan to the court unless he or she finds that the IBTinsurance company domiciled in Rhode Island that would have a material adverse impact on the inter- ceased writing new business in 2004. Enstar ests of policyholders or claimants that are part of theacquired PWIC in 2010 and subsequently merged subject business. Within 30 days after notice fromadditional runoff entities and books of business into the commissioner that the applicant may proceedPWIC. The PWIC book of business comprised $86 with the court filing, the applicant must apply to themillion of gross reserves. Yosemite was acquired by court for approval of the IBT plan. Following a courtEnstar in 2018 and redomesticated from California to hearing, at which interested parties have an oppor- Oklahoma. This IBT between PWIC and Yosemite is tunity to present evidence or comments if theythe first IBT approved under Oklahomas IBT statute consider that they would be adversely affected byand the first IBT approved in the US. the IBT, the court is required to enter a judgment 68 GLOBAL INSURANCE INDUSTRY|YEAR IN REVIEW 2020'