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
Connecticut Considering Auto Glass Repair Disclosure Bill
Earlier this week, the Connecticut House passed HB 5072, limiting the abilities of insurance companies or their representatives to “steer” insureds to specific automotive glass repair facilities. The new legislation follows a trend in Connecticut to dissuade insurers from directing insureds to use specific facilities. Connecticut’s existing laws prevent appraisers from requiring that specific locations or companies be used for automotive repairs.
Read More Connecticut Considering Auto Glass Repair Disclosure Bill
NAIC Subgroup’s White Paper on Captives and SPVs
On March 14, 2013, the NAIC’s Captive and Special Purpose Vehicle Use (E) Subgroup (the “Subgroup”) released a revised version of its White Paper with respect to Special Purposes Vehicles (“SPVs”) and Captives (the “New Draft”). The New Draft is now open for a public comment period until April 28, 2013.
Read More NAIC Subgroup’s White Paper on Captives and SPVs
NAIC Defers Action on Stop Loss Insurance Attachment Points; Some States Begin Increases
During the NAIC 2012 Fall National Meeting, a proposal to amend the NAIC’s Stop Loss Insurance Model Act to increase the minimum individual attachment point – the equivalent of a “deductible” – for stop loss insurance from $20,000 to $60,000, as well as changes to aggregate attachment points, was defeated by a 10-8 vote.
Read More NAIC Defers Action on Stop Loss Insurance Attachment Points; Some States Begin Increases
California Continues to Publicize Insurers Involved in Iranian Investments
In recent years, California has sought to establish disincentives for insurance companies to invest in certain sectors of the Iranian industry. However, in early 2012, following challenges to its authority to require divestment, the California Insurance Department (the “Department”) entered into a settlement and agreed not to bar insurers from investments in companies doing business with Iran.
Read More California Continues to Publicize Insurers Involved in Iranian Investments
NAIC Fall National Meeting Foreshadows More Flexibility for Life Insurers
The National Association of Insurance Commissioners (“NAIC”) held its Fall National Meeting (the “Meeting”) from November 29th through December 2, 2012. Among the topics discussed was the need to address the perceived “XXX and “AXXX” reserve redundancies applicable to life insurers.
Read More NAIC Fall National Meeting Foreshadows More Flexibility for Life Insurers