On April 16, 2015, the Cybersecurity Task Force of the National Association of Insurance Commissioners adopted 12 principles for effective cybersecurity insurance regulatory guidance. Recognizing that cybersecurity risks pose a significant threat to consumer financial and health information, as highlighted by recent, significant data breaches, the NAIC took steps to…
Read More NAIC Issues 12 Principles for Insurance Regulatory Guidance on Cybersecurity

On April 9, 2015, the Georgia legislature sent a bill to the governor for his signature that would improve the regulatory environment for captive formation in the state. House Bill 552 reduces the taxes imposed on all Georgia domiciled captive insurance companies, among other captive friendly revisions. Once enacted, Georgia’s…
Read More New Georgia Captive Law Lowers Taxes Among Other Changes

The NAIC’s Cybersecurity Task Force and Property and Casualty Insurance Committee are jointly weighing whether to add a required cybersecurity insurance coverage supplement to the already required Property and Casualty Annual Statement.  The supplement, which would be due April 1 annually, would be required of every reporting carrier writing a…
Read More NAIC Planning to Require Cybersecurity Insurance Data Submission

In 2013, Texas enacted legislation authorizing captive insurance companies to be domiciled in Texas for the first time, with the first Texas captive becoming licensed on March 17, 2014. Now, Texas lawmakers have proposed legislation, Senate Bill 667, to enhance an already favorable regulatory environment for Texas-licensed captive companies…
Read More Texas Legislation Looks to Enhance Captive Regulatory Environment

Michigan Governor Rick Snyder has named Pat McPharlin as the Director of the state Department of Insurance and Financial Services effective May 18th. McPharlin replaces current Director Ann Flood who has held the position since October of 2013. McPharlin has extensive service in the private financial sector and has served…
Read More Michigan Appoints New Director of Insurance

The New York State Department of Financial Services (NYDFS) has expanded its information technology examination procedures to focus more attention on cyber security. NYDFS intends to schedule IT/cyber security examinations after conducting comprehensive risk assessments. In a letter dated March 26, 2015, Superintendent Benjamin Lawsky (available here) asks…
Read More NYDFS to Focus on Cyber Security

An ad-hoc group of Surplus Lines interested parties held their semi-annual meeting on March 27, 2015 in Scottsdale, AZ.

NARAB II, TRIA reauthorization, cyberinsurance, Dodd-Frank and Ride Sharing insurance related matters were among the many issues discussed on several panels.

There were also discussions relating to:

  • Experiences related to Domestic

…
Read More Surplus Lines Law Group Holds it’s Semi-Annual Meeting in Scottsdale

Michael McRaith, the Director of the Federal Insurance Office, has offered useful information regarding the TRIA disclosure notices to supplement the February 6 interim guidance. The interim guidance called for an April 13, 2015 deadline for insurance companies to deliver certain TRIA-related notices to policyholders. During a March 19 conference…
Read More McRaith Offers Additional Information on the April 13 Deadline for TRIA Disclosure Notices

Companies looking to establish insurance coverage, especially in situations involving a captive type of arrangement, will, as always, need to focus on the qualification of the coverage as insurance for U.S. federal income tax purposes. While this traditionally involves an analysis of the risk shifting and risk distribution aspects of…
Read More Internal Revenue Service finds Contracts protecting against Foreign Currency Fluctuations not to be Insurance

On March 20, 2015, Connecticut Governor Dannel P. Malloy announced that Katharine L. Wade will be the new Commissioner of the Connecticut Insurance Department (the “Department”). Ms. Wade has over 20 years of experience in the insurance industry. Most recently, she was Cigna Corporation’s Vice President of Public Policy, Government…
Read More Connecticut Governor Appoints Insurance Commissioner