Company: FRFXF
Filing Date: 2025-03-26
Form Type: 424B3
Source: 0001104659-25-028272
Chunk: 74

Company: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN
Filing Date: 2025-03-26
Form: 424B3
Chunk 74
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 United States
is regulated primarily on a legal-entity basis, the NAIC has increased its focus on risks presented by an insurer’s holding company
system. In 2010, the NAIC adopted revisions to the Model Insurance Holding Company System Regulatory Act and the Insurance Holding Company
System Model Regulation (together, the “Revised Model Holding Company Act and Regulation”) that include, among other
amendments, a requirement for the ultimate controlling person of every insurer to file an enterprise risk report annually. “Enterprise
risk” is defined as any activity, circumstance, event or series of events involving one or more affiliates of an insurer that,
if not remedied promptly, is likely to have a material adverse effect upon the financial condition or liquidity of the insurer or its
insurance holding company system as a whole. The Revised Model Holding Company Act and Regulation have been substantively adopted in
each of our operating insurance subsidiaries’ domiciliary states.

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In 2012, the NAIC adopted
the Risk Management and Own Risk and Solvency Assessment (“ORSA”) Model Act, which has been substantively adopted
in each of our operating insurance subsidiaries’ domiciliary states. The ORSA Model Act requires insurers or their insurance group
to conduct an ORSA consistent with a process comparable to the NAIC ORSA Guidance Manual no less than annually and at any time when there
are significant changes to the risk profile of the insurer or the insurance group of which the insurer is a member. An ORSA is a confidential
internal assessment, appropriate to the nature, scale and complexity of an insurer or insurance group, conducted by that insurer or insurance
group of the material and relevant risks associated with the insurer or insurance group’s current business plan, and the sufficiency
of capital resources to support those risks. The assessments must be documented in an annual summary report, a copy of which must be
submitted to state insurance regulators as required under the applicable laws of each state.

Corporate Governance Annual Disclosure Model Act

The NAIC has adopted the
Corporate Governance Annual Disclosure Model Act (“CGAD”). CGAD requires an annual filing by an insurer or insurance
group that provides a detailed report on corporate governance structure and policies and procedures. Fairfax submits CGAD filings on
behalf of all of its U.S. operating insurance subsidiaries to the Delaware Department of Insurance.

Terrorism Risk Insurance Act

The Terrorism Risk Insurance
Act of 2002, as amended (“TRIA”), established a