Earlier in 2014, Governor Andrew Cuomo introduced a series of tax reforms in his budget bill (the “Bill”) which is currently being addressed by the state legislature.
Read More Potential New York Legislation to Introduce Tax Changes With Respect To Captive Insurers
FIO Weighs in on Financial Captive Reinsurers and the Use of PBR
On December 12, 2013, the Federal Insurance Office (the “FIO”) published its long-delayed report entitled “How to Modernize and Improve the System of Insurance Regulation in the United States” (the “Report”). The FIO was required under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act to issue the Report almost two years ago.
Read More FIO Weighs in on Financial Captive Reinsurers and the Use of PBR
FIO Showing Increased Willingness to Intervene on Use of Captives to Finance Perceived Excess Reserves
In recent years, the use of captives to help life insurers finance perceived excess XXX and AXXX reserves has accelerated. The NAIC continues to monitor the emerging practice and has drawn considerable attention to the matter through its solicitation of opinions by various players in the industry as well as through the publication of white paper on the matter and actions by the Principle-Based Reserving Implementation (EX) Task Force at the NAIC’s Summer National Meeting.
Read More FIO Showing Increased Willingness to Intervene on Use of Captives to Finance Perceived Excess Reserves
NAIC Increases Focus on Use of Captives by Life Insurers
On August 24th, the Principle-Based Reserving Implementation (EX) Task Force (the “Task Force”) of the NAIC met at the NAIC Summer National Meeting. During the meeting, the Task Force set forth additional charges with respect to the use of captives by life insurers and determined that the NAIC needs to “further assess the solvency implications of life insurer-owned captive insurers and other alternative mechanisms in the context of [Principle-Based Reserving].”
Read More NAIC Increases Focus on Use of Captives by Life Insurers
Large Storms in Oklahoma Rattling Local Insurance Industry
Weather patterns in Oklahoma have taken their toll on the local insurance industry. Due to an unexpectedly large number of powerful tornadoes in May, including the devastating tornado that struck Moore, Oklahoma, insurance companies have thus far seen claims for tornado damages in excess of $1 billion in Oklahoma.
Read More Large Storms in Oklahoma Rattling Local Insurance Industry
NAIC Financial Condition (E) Committee Formally Adopts Captives & SPV White Paper
On July 17th, 2013, the Financial Condition (E) Committee (the “Committee”) of the NAIC held a conference call resulting in the adoption of the Captives & SPV White Paper (the “White Paper”) in the form of its June 6th, 2013 draft which was adopted by the Captive and Special Purpose Vehicle Use (E) Subgroup (the “Subgroup”). We had originally reported on the adoption of the White Paper by the Subgroup here.
Read More NAIC Financial Condition (E) Committee Formally Adopts Captives & SPV White Paper
District Court Rules Silverstein Unable to Collect From Airlines for 9/11 Attacks
On July 18th, federal U.S. District Court Judge Alvin Hellerstein ruled against Silverstein Properties Inc. (“Silverstein”) in its quest to recover damages from American Airlines and United Airlines as a result of the terrorist attacks of September 11th, 2001.
Read More District Court Rules Silverstein Unable to Collect From Airlines for 9/11 Attacks
Senate Bill to Permit Transfer of Public Pension Programs to Life Insurers
This week, Utah Senator Orrin Hatch introduced Bill S. 1270, which, if enacted, would permit state and local governments to transfer their pensions programs to life insurers. The purpose of this bill is to strengthen government pension plans, since, due to the erosion of pension plan assets as a result of the financial crisis, there is generally perceived to be an enormous gap between the pension benefits required to be paid to workers and the funds available to make such payments.
Read More Senate Bill to Permit Transfer of Public Pension Programs to Life Insurers
NY Times Reports Comments by NY Superintendent on Reinsurance Transactions within Life Insurance Industry
On June 11, 2013, the New York Times reported that New York Superintendent of Financial Services Benjamin Lawsky joined the debate on the increasingly-popular use of captives and Special Purpose Vehicles (“SPVs”) to reinsure “XXX and “AXXX” reserve redundancies. Mr. Lawsky believes that life insurers are engaging in “shadow insurance” by taking advantage of the laws in other jurisdictions to use what he calls “hollow assets” to support reserves that would traditionally not be approved in New York, such as parental guarantees and conditional letters of credit.
Read More NY Times Reports Comments by NY Superintendent on Reinsurance Transactions within Life Insurance Industry
UPDATE: Connecticut Enacts Auto Glass Repair Disclosure Bill
This updates our May 17, 2013 blog post.
On June 3, 2013, Connecticut Governor Dannel Malloy signed into law HB 5072 (the “Bill”), restricting insurance companies and affiliated entities from influencing insureds into using specific automotive glass repair establishments.
Read More UPDATE: Connecticut Enacts Auto Glass Repair Disclosure Bill