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

Effective January 1, 2010, the National Association of Insurance Commissioners (NAIC) adopted the Annual Financial Reporting Model Regulations (Model Audit Rule), which among other requirements, substantially expanded the role of board of director audit committees in the oversight of insurance company financial reporting, auditor qualifications and independence, corporate governance and…
Read More Evolving Audit Committee Standards for Texas Insurers

The global stock of insurance linked securities at the end of 2014 was approaching $25.2 billion.  Yesterday George Osborne unleashed the giant peach for the United Kingdom in a seemingly measured statement but one full of promises.

“2.228 Global reinsurance – the government announced at Autumn Statement 2014 that it…
Read More George Unleashes the Giant Peach

Illinois Governor Rauner has named Acting Director Jim Stephens as director of the Department of Insurance on a temporary basis through January 2017.   The Governor’s Office will continue the search for a permanent director in the interim. The appointment does require Senate confirmation.  Director Stephens was not able to continue…

Read More Illinois Department of Insurance has Appointed Temporary Director

On a March 16 conference call, the NAIC Principle-Based Reserving Implementation (EX) Task Force adopted the 2015 XXX/AXXX Reinsurance Supplement Proposal.  The Proposal adds to the Annual Statement a reinsurance exhibit which discloses data regarding reinsurance cessions subject to reserve valuation under Regulations XXX and AXXX.  Significantly, after considering public…
Read More 2015 NAIC XXX/AXXX Reinsurance Supplement Proposal

MEDICAID INTERCEPTION
The Property and Casualty Insurance Committee adopted an amended 2014 NCOIL Model Act Regarding Medicaid Interception of Insurance Payments, which was approved by the Executive Committee later that day. The amended model creates an exemption for payments that a property-casualty insurer makes to fund a structured settlement annuity…

Read More Highlights of the National Conference of Insurance Legislators (NCOIL) Spring Meeting in Charleston, South Carolina, February 27 to March 1, 2015

On Tuesday, March 10, the Bipartisan Policy Center, which was created in 2007 by former Congressional leaders as a Washington D.C.- based think tank, announced it was launching an insurance task force. The task force would assess the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act on…
Read More Bipartisan Policy Center Forms Insurance Task Force

The Federal Insurance Office has made it clear that it considers cyber insurance to play a crucial role in encouraging cyber security of companies as well as providing financial support for companies in the event of a cyber incident. Thus, for example, in comments at the quarterly meeting of the…
Read More FIO and States Working to Enhance Flow of Information within Cyber Insurance Industry

Recently, the Uniform Law Commission’s Committee to Revise the Uniform Unclaimed Property Act met in Washington and adopted uniform rules drafted by an advisory group. These approved recommendations are consistent with the Model Unclaimed Life Insurance Benefits Act which was adopted by the National Conference of Insurance Legislators last year.
Read More Committee Proposes Uniform Rules for Unclaimed Insurance Policies