On Saturday, March 29th, 2014, the Emerging Accounting Issues Working Group & Statutory Account Principles Working Group held a meeting to adopt certain standards and to expose other proposals for comments. The sole topic of substantial debate surrounded moving forward with the Accounting for the Risk Sharing Provisions of the Affordable Care Act (the “Act”).
Read More Live Blog: Emerging Accounting Issues Working Group & Statutory Accounting Principles Working Group Meeting
Live Blog: CIPR Spring Event: Insuring Cyber Liability Risk (NAIC Spring Meetings)
Speakers at the Spring NAIC Meeting in Orlando on the topic of insuring cyber liability risk offered commentary on risks and damages associated with cyber attacks in the United States, as well as how the insurance market has (and has not) developed to help mitigate risk. Representatives included district attorneys, practicing intellectual property lawyers, federal agents as well as state regulators.
Read More Live Blog: CIPR Spring Event: Insuring Cyber Liability Risk (NAIC Spring Meetings)
Rector Report has NAIC Moving Forward on PBR
On February 17, 2014, the NAIC Principle-Based Reserving Implementation (EX) Task Force opened for comment a report by Rector & Associates, Inc. (the “Rector Report”) regarding reserve financing transactions.
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Potential New York Legislation to Introduce Tax Changes With Respect To Captive Insurers
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