Federal Legislative Developments

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On Wednesday, February 25, 2009, the House of Representatives passed legislation extending the National Flood Insurance Program (“NFIP”), which was set to expire in March.  As we reported here, Congress previously extended the NFIP at the end of September 2008. …
Read More Update: House of Representatives Approves NFIP Extension

On February 11, 2009, Representatives Melissa Bean (D-IL) and Ed Royce, (R-CA) announced that they plan to introduce the National Insurance Consumer Protection and Regulatory Modernization Act (the “Act”).  The Act would create a federal charter for insurance regulation and would create, according to Rep. Bean, a “streamlined and uniform regulatory process that enhances competition and reduces the multi-state regulation barriers.” …
Read More Lawmakers to Introduce the National Insurance Consumer Protection and Regulatory Modernization Act

Reps. Dennis Moore (D-Kan.) and Scott Garrett (R-N.J.) recently announced their intention to reintroduce the Nonadmitted and Reinsurance Reform Act (the “NRRA”).  As we previously reported here and here, the NRRA would establish national standards on how states may regulate and tax surplus lines insurers and also sets national standards concerning the regulation of reinsurance. …
Read More House of Representatives to Reintroduce the Nonadmitted and Reinsurance Reform Act

This updates our January, 15, 2009 posting.  On February 4, 2009, President Obama signed into law the Children’s Health Insurance Program Reauthorization Act of 2009 (H.R. 2) (the “Act”).  The Act extends the State Children’s Heath Insurance Program (“SCHIP”) through the 2013 fiscal year and expands SCHIP to cover an estimated 4 million additional children. …
Read More UPDATE: SCHIP Extension Signed Into Law

At a hearing held by the National Conference of Insurance Legislators (“NCOIL”) on Saturday, January 24, 2009, a panel of state legislators heard testimony from a number of experts regarding the advantages and disadvantages of regulating the credit default swap (“CDS”) market on a state, rather than federal, basis. 

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Read More NCOIL Debates Credit Default Swaps Regulation

On January 14, 2009, the U.S. House of Representatives passed the Children’s Health Insurance Program Reauthorization Act of 2009 (H.R. 2) (the “Act”) by a vote of 289-139.  The Act would expand coverage and extend the effective date of the State Children’s Health Insurance Program (“SCHIP”), which is set to expire at the end of 2009 fiscal year. 

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Read More SCHIP Bill Passed Again By House

The National Conference of Insurance Legislators (“NCOIL”) has proposed to hold a strategy summit in early 2009 to plan and organize opposition to any federal involvement in the regulation of insurance.  This announcement follows the recent adoption of the Resolution Opposing Continuing Federal Insurance Chartering Efforts by the Council of State Governments (“CSG”) where it was resolved, amongst other things, that state officials continue to monitor, review and regulate the banking, insurance and securities industries as it relates to their individual jurisdictions. 

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Read More NCOIL Proposes Summit to Discuss Opposition to Proposed Regulatory Reform

On December 10, 2008, the Senate Finance Committee (the “Committee”) held a meeting to discuss proposed legislation (the “Proposal”) that would reduce the purported competitive advantage in tax treatment received by affiliated foreign reinsurers by altering the tax code to disallow deductions for a portion of reinsurance premiums ceded by insurance companies to affiliated foreign reinsurers who are not subject to U.S. taxation. …
Read More Senate Finance Committee Discusses Reinsurance Tax Legislation

As previously discussed here, here, here, and here, in enacting the Emergency Economic Stabilization Act (“EESA”), Congress authorized the United States Treasury to establish the Troubled Asset Relief Program (“TARP”).  As part of the Treasury’s effort to inject capital into the credit markets, the Treasury initiated the Capital Purchase Program (“CPP”) as part of the TARP. …
Read More Insurance Company Participation in the Troubled Asset Relief Program

The Treasury Department recently proposed a rule that would implement the statutory requirements in Section 103(e) of the Terrorism Risk Insurance Program Reauthorization Act of 2007 (“TRIPRA”) that caps the annual liability of the Terrorism Risk Insurance Program (the “Program”) for insured losses at $100 billion. 

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Read More Treasury Department Proposes Rule Implementing Cap on Terrorism Risk Insurance Program