DOUGLAS HARTZ

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Assist in defining problems, potential solutions, and implementations regarding insurer regulatory and governance issues within the national state-based insurance regulatory system of the United States, individual states and jurisdictions of the USA and any other insurance regulatory authorities (collectively insurance regulators) as needed. This is done through communications with insurance regulators, other persons or entities affected by the actions or inactions of insurance regulators, and with clients. Engagements have included avoiding or lessening the impact of compliance actions and orders by addressing issues while remaining in the examination or investigation phases of problem developments. 

As the national state-based insurance regulatory system of the United States has become much better at early detection of solvency related problems, IGC has moved its focus to protecting consumers and the trust on which the insurance industries (Life & Annuity, Property & Casualty and Health) depend, by working on corporate governance, enterprise risk management, and risk-focused financial and market conduct examination or investigation. This reflects the developing recognition that when problems show in the financials they are like stage-4 cancer. By this point, the entity and its stakeholder’s problems cannot be fully solved or cured.

Oversaw all aspects of company (insurers, health plans and other company types) formation, licensing, restructurings, ongoing surveillance of financial condition and market conduct, compliance, supervisions, and receiverships. Worked in the WA OIC executive team dealing with all aspects of insurance regulation ranging from consumer protection, legislative matters, and public information to general operations. Served on Compliance Committee determining actions, orders, and fines to recommend to the Commissioner.

Was active in several NAIC groups while in this position.  This included serving as Vice-Chair of the Receivership Model Law Working Group which developed the Long-Term Care updates to the NAIC Life & Health Guaranty Association Model Act in 2017 (https://www.naic.org/store/free/MDL-520.pdf).  At less than a year, this was the fastest substantive update to a model law adopted by the full NAIC. It also is developing into the fastest enactment of such substantive updates by the states in the NAIC’s history. Much assistance in these accomplishments came from stakeholder engagement practices acquired at the WA OIC.

Served as Deputy Rehabilitator of Capital Assurance Risk Retention Group (CARRG) 12/2007 — 09/2012. By keeping CARRG in rehabilitation and requiring “Receivership Agreements” from the producers of the long-term (5-10 years) extended auto warranty (EAW) contracts to agree to pay for repairs or face making more costly refunds from cancellations of the underlying EAW contracts, claims were satisfied more than they would have been had we simply followed what was done with National Warranty Insurance Group, RRG, which went into liquidation. Served as federal receiver of the Ultimate Warranty group of obligors 04/2008 — 09/2012. Served as Creditor’s Committee Chair in the US Fidelis Warranty Bankruptcy proceeding (dealing with more than 35 state Attorney General offices) allowing for consumer and general creditor trusts to be created though Court approval of a “Liquidating Chapter 11 Plan” that permitted more claims to have been paid than likely would have resulted from any other sequence of events. Served as Bankruptcy Court Appointed Trustee for the General Creditor Trust of US Fidelis Warranty 09/2012 — 12/2014. Served as Supervisor of Seaton and Stonewall for Rhode Island in quasi-confidential supervisions where there was some probability that one (or both) of the insurers in runoff could have had to been placed into receivership. Restructuring allowed for both insurers to continue in runoff. While the above rehabilitation and supervisions were my largest projects during this period, there were also projects helping states examine quasi-governmental insurers, receivership offices and performing other general consulting. There have also been numerous engagements consulting with law firms or hedge funds trying to obtain more in-depth understandings of how insurance regulation works or should work. This was all held in abeyance (except the federal Bankruptcy Trusteeship) while I was a state employee.