During the National Association of Insurance Commissioners (“NAIC”) Fall Meeting in National Harbor, Maryland, the Surplus Lines Task Force (“Task Force”) chaired by Commissioner James Donelon (LA) received a report on the status of the proposed 2007 Nonadmitted and Reinsurance Reform Act (H.R. 1065/ S. 929) (the “Bill”). 

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Read More NAIC Surplus Lines Task Force Makes Progress Despite Likelihood that the Bill will not Pass this Year

EAPD lawyer Machua Millett is participating in the American Conference Institute’s ReAct Brazil International Forum on Positioning for Success in the Brazilian Reinsurance Market.  This morning’s presentations included “Entering the Brazilian Market: What You Must Consider to Launch and Maintain Successful Reinsurance Operations in Brazil” and “Regulator’s Perspective on the New Brazilian Reinsurance Law.” …
Read More Breaking News: Industry Participants and Regulators Discuss Development of the Brazilian Reinsurance Market

This blog updates our posting on December 11, 2007.  Edwards Angell Palmer & Dodge LLP attended the NAIC Reinsurance Task Force (the “Task Force”) meeting on September 22, 2008.  During the meeting, Commissioner Goldman (New Jersey) directed the Task Force to discuss the most recent draft of the Reinsurance Regulatory Modernization Proposal (the “Proposal), and accepted comments from various parties and industry groups, including the American Insurance Association, the Reinsurance Association of America, the International Underwriting Association, and New York Life Insurance Company. 

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Read More NAIC Reinsurance Task Force Adopts Modernization Proposal

Given the recent volatility in the credit and stock markets, there have been increasing calls for regulation of the $62 trillion credit default swap (“CDS”) market.  As we reported yesterday, New York State, determined to take the lead in the regulation of CDS contracts, announced that it would regulate certain CDS contracts as insurance. …
Read More S.E.C. Chairman Cox Seeks Federal Regulation of Credit Default Swaps

CEIOPS has presented its preliminary findings from QIS4 to the European Parliament’s Economic and Monetary Affairs Committee. CEIOPS confirmed that the target participation rates in QIS4 had been exceeded, with 34% of individual EEA insurers and 65% of cross-border groups taking part in the study. …
Read More EU: Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) Presents Preliminary Findings from QIS4

Today, the AIG Task Force (“Task Force”) of the National Association of Insurance Commissioners (“NAIC’) held a public briefing during which it outlined the Task Force’s efforts with respect to overseeing AIG’s insurance operating units of the troubled insurance giant.

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Read More BREAKING NEWS: NAIC Public Briefing Regarding AIG

On September 16, the North American Securities Administrators Association (NASAA) announced that it had reached a settlement with Credit Suisse under which Credit Suisse will buy back $550 million in Auction Rate Securities (ARS) from individuals, non-profits and small businesses with account sizes under $10 million. 

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Read More States Settle Auction Rate Securities Probe With Credit Suisse

On September 18, the Michigan Attorney General announced that it had reached a settlement with Comerica Bank to buy back $1.46 billion in Auction Rate Securities (ARS) from any customer who purchased ARS through Comerica.  (Click here to see the Attorney General’s press release).  This is believed to be the first settlement in which an institution agreed to buy back both retail and institutional investors’ ARS. 

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Read More Michigan Attorney General Settles Auction Rate Securities Probe With Comerica

In a reversal of its previous position, the New York Insurance Department (the “NYID”) announced yesterday that it would regulate, as insurance, certain credit default swap contracts.  The new rules, which go into effect in January 2009, would cover CDS contracts bought by investors that also own the actual bonds or loans referenced by the swaps.  The change would require institutions selling such contracts to be licensed as insurance companies.  However, “naked swaps,” where the buyer or investor does not own the underlying bond, would remain free from regulation as insurance. …
Read More New York to Regulate Certain Credit Default Swaps As Insurance

As previously reported here, the former CEO of Brocade Communications Inc., Greg Reyes, was sentenced to 21 months in prison and ordered to pay a $15 million fine in the first criminal trial to arise out of the stock options backdating scandal. Reyes has appealed the verdict. 

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Read More Former Brocade CEO Sues Brocade Over Options Backdating Legal Fees