The Illinois Department of Insurance recently issued a bulletin requiring all companies to obtain independent third party background investigation/verification reports from nationally recognized vendors. The reports must be submitted with any required filing of biographical affidavits of officers and directors including in acquisitions. The vendor should submit the background investigation/verification…

Read More Illinois Department of Insurance Requires Independent Third Party Background Investigation Reports

This year the CEA will buy more reinsurance than in prior years, but the CEA may be casting an eye towards revenue bonds as part of its overall claims-paying resources, believing that a bond program could be more effective than reinsurance.

The CEA was formed as the result of the…

Read More The California Earthquake Authority (CEA) is Considering Purchasing Cat Bonds over Reinsurance

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

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…

Read More TRIA Update: Insurers May Be Asked to Segregate TRIA Premium

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…

Read More Surplus Lines Tax Filing Update: Surplus Lines Clearinghouse Issues Bulletin Discontinuing Multistate Platform

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

Michael Pieciak has been appointed as the Commissioner of the Vermont Department of Financial Regulation (“DFR”) by the Governor. Susan Donegan, the previous Commissioner, left on June 30th after serving in the position for over 3 years.

Mr. Pieciak was previously the Deputy Commissioner of DFR’s Securities Division and prior…

Read More Vermont Insurance Commissioner Appointed

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 §…

Read More New York Surplus Lines Tax Update: New York Clarifies Franchise Tax Position on Surplus Lines Insurers under Backdrop of NRRA

Introduction

For many years, the European Union’s single market directives have allowed City of London firms to ‘passport’ their services across the European Economic Area (‘EEA’) and operate out of other member states without the need to obtain additional authorisation l to the one which they had obtained in a…

Read More What impact will Brexit have on the passporting rights of UK-based financial services?

This article examines some potential issues for UK re/insurers following the referendum vote for the UK to end its membership in the EU.

Prolonged period of uncertainty but “business as usual”?

One of the most significant concerns is that Brexit will bring about a prolonged and indefinite period of uncertainty…

Read More Brexit And The Re/Insurance Industry