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On June 16, 2009, the United States Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises (the “Subcommittee”) held a hearing regarding how to improve oversight of the insurance industry in order to protect insurance consumers and prevent insurance companies from posing a systemic risk to the American financial system. 

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Read More House Financial Services Subcommittee Holds Hearing Regarding the Federal Regulation of Insurance and Systemic Risk

The Government of Hong Kong has long planned to establish a safety net for Hong Kong policy holders in the event of an insurance company collapse. The first consultation exercise on a safety net for policy holders was held in 2003 where it was suggested two protection funds be established – one for life insurance and the other for general insurance, but the scheme was put on hold due to a lack of support from the insurance industry. …
Read More HK: HKFI Presents a Protection Fund Proposal

HSBC Insurance (Asia) Limited (“HSBC Insurance”), a member of the HSBC Group, has received regulatory approval from the China Insurance Regulatory Commission (“CIRC”) to form a joint venture with National Trust Limited (“National Trust”) in mainland China with the aim of boosting its insurance income and expanding its wealth management businesses. …
Read More HK: HSBC Embarks on Insurance Joint Venture in China

In an effort to attract its first captive insurance company, Maine has enacted legislation to modernize its captive insurance laws originally adopted in 1997.  L.D. 1436, “An Act To Create Economic Development in the State by Modernizing the State’s Captive Insurance Laws” (the “Act”), eliminates many of the restrictions on the types of business a captive insurance company may engage in and on the types of allowable investments for pure captive insurance companies. …
Read More Maine Revises Captive Insurance Laws

Last week, Florida Governor Charlie Christ signed into law House Bill 853, previously discussed here, which exempts surplus lines insurers entirely from the provisions of Chapter 627, except where specifically stated otherwise.  Chapter 627 contains Florida’s rate and form filing statutes. …

Read More UPDATE: Surplus Lines Insurer Exemption Legislation Signed Into Law

The Group Solvency Issues (EX) Working Group (the “Working Group”) (a working group of the Solvency Modernization Initiative (EX) Task Force) of the National Association of Insurance Commissioners (“NAIC”) held a meeting at the NAIC summer national meeting in Minneapolis to discuss changes to the Insurance Holding Company System Regulatory Act (the “Act”). …
Read More NAIC Considers Changes to Insurance Holding Company System Regulatory Act to Allow for Greater Oversight of Non-Insurance Holding Companies and Affiliates

The Connecticut Insurance Department (the “Department”) has rescinded Bulletin S-12 regarding de-minimis gifts to insurance clients and prospective clients.  Bulletin S-12, issued on December 24, 2008 and which we previously reported on here, had offered guidance to insurance practitioners regarding Connecticut’s anti-rebating law (Conn. Gen. Stat. § 38a-825). 

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Read More Connecticut Insurance Department Rescinds Anti-Rebating Bulletin

Argentina: According to the national regulator, total premiums in the Argentinean insurance market increased 7.4% when comparing the twelve months ended April 30, 2009 with the prior twelve month period.  The fastest growing line of insurance for the period was workers compensation insurance, where total premiums increased 22.1%.  Automobile insurance remains the largest sector in the Argentinean insurance market, accounting for nearly half of the market’s total premiums.
Read More Latin American Update: Argentina, Chile, Cuba, Mexico, Nicaragua, Venezuela

The Argentinean authorities recently fined an individual insured 8 times premium and an insurance intermediary 15 times premium for illegally transacting life insurance business with a non-authorized foreign life insurer. …
Read More Argentinean Authorities Impose Total Fine of 23 Times Premium for Unauthorized Life Insurance Transaction with Foreign Insurer

On June 4, 2009, Representatives Gregory Meeks (D-NY) and Tom Price (R-GA) introduced H.R. 2733, the Indexed Annuities and Insurance Products Classification Act of 2009 (the “Bill”), in the U.S. House of Representatives.  If adopted, the Bill would nullify Securities and Exchange Commission Rule 151A which sought to classify indexed annuities as securities and subject them to federal regulation. …
Read More House of Representatives Introduces Bill to Nullify SEC Rule Regulating Indexed Annuities as Securities