On May 19, 2015, Governor Abbott signed into law the Texas version of the NAIC’s Own Risk and Solvency Assessment (ORSA), which became effectively immediately and will be codified in Chapter 830 of the Texas Insurance Code. The NAIC’s model act version of ORSA was adopted in 2012 and Texas now joins to approximately 20 other states that have previous adopted their own versions. In essence, ORSA requires that an insurer self-identify, monitor and manage those risks which are material and relevant to its own business operations and then provide regulators with a high level summary report on the assessment process and the results in certain situations.

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