Effective on December 31, 2016, New York Senate Bill 7536 was signed into law enacting New York Insurance Law Section 201 (“Section 201”). Section 201 establishes the State Insurance Advisory Board (the “Advisory Board”) composed of seventeen members appointed by the New York Superintendent. Of the seventeen members, nine will
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U.S. Department of Treasury Issues New TRIA Rules
This week, the U.S. Department of the Treasury (“Treasury”) promulgated additional rules affecting the Terrorism Risk Insurance Act (“TRIA”), which had been recently reauthorized in late 2015 (the “Rules”). Of particular note is that, in accordance with the recent reauthorization, Treasury is obligated to collect data on the terrorism market
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Locke Lord’s Zach Lerner, Associate in the New York office, Co-Authors “The Privacy Shield and its Impact on U.S. Insurance Companies” for FORC Fall 2016 Edition
The EU-U.S. Privacy Shield (the “Privacy Shield”) has been promulgated through a joint effort between the United States (the “U.S.”) and the European Union (the “EU”) in order to facilitate the transfer of personal data from the EU to U.S. companies. The Privacy Shield officially went live on August 1
Surplus Lines Expansion: Industry Comments on New Opportunities
As we recently reported in Law360, the surplus lines industry is increasingly serving as a mechanism to provide evolving and complex coverage to new ideas and products throughout the world. This week, Insurance Business America (“IBA”) explored other innovations and legislative changes that may provide opportunities for surplus lines
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TRIA Update: NAIC Data Call Imminent
This week, the National Association of Insurance Commissioners (“NAIC”) provided an update on its TRIA data call initiative (the “Data Call”). As we previously reported here, the NAIC has been in discussions, separate and apart from the Federal Insurance Office, to initiate its own Data Call to better understand
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Locke Lord’s Zach Lerner, Associate in the New York office, Authors “As Science Evolves, So Must Political Risk Insurance” for Law360 on July 15, 2016
The explosion of scientific achievement and international interconnectivity over the last decade has provided increased opportunities for businesses worldwide. However, with global reach comes global risk as well. Individuals, corporations and conglomerates face increasing pressure to mitigate risk beyond the walls of their homes and headquarters and to consider all
Read More Locke Lord’s Zach Lerner, Associate in the New York office, Authors “As Science Evolves, So Must Political Risk Insurance” for Law360 on July 15, 2016
TRIA Update: Insurers May Be Asked to Segregate TRIA Premium
This month, the Federal Insurance Office (“FIO”) issued its “Report on the Overall Effectiveness of the Terrorism Risk Insurance Program” (the “Report”, found here), required by the latest reauthorization of the Terrorism Risk Insurance Act (“TRIA”) in 2015. The Report found that insurers have collected over $24 billion in
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Surplus Lines Tax Filing Update: Surplus Lines Clearinghouse Issues Bulletin Discontinuing Multistate Platform
As we previously reported here, the Non-Admitted Insurance Multi-State Association (“NIMA”) had announced its intentions to dissolve, with a run-off period until September 30, 2017 to allow for endorsements to be filed through the Surplus Lines Clearinghouse (the “Clearinghouse”). Yesterday, the Clearinghouse published a bulletin here providing guidance to
New York Life Industry Update: Principle-Based Reserving for Life Insurers coming in 2018
This week, the New York Department of Financial Services (the “Department”) announced that it will adopt a principle-based reserving (“PBR”) approach for life insurers beginning in 2018. The Department has also established a working group to help implement certain reserve safeguards.
New York had been one of the few outlier
Read More New York Life Industry Update: Principle-Based Reserving for Life Insurers coming in 2018
New York Surplus Lines Tax Update: New York Clarifies Franchise Tax Position on Surplus Lines Insurers under Backdrop of NRRA
Last month, New York issued two advisory opinions that could alter the tax obligations for surplus lines insurers. Advisory Opinion TSB-A-16(5)(C) (June 10, 2016, available here) and Advisory Opinion TSB-A-16(4)(C) (June 10, 2016, available here) (collectively, the “Opinions”) address how the franchise tax under N.Y. Tax Law §