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Edwards Angell Palmer & Dodge LLP attended the International Insurance Forum sponsored by the National Association of Insurance Commissioners (the “NAIC”) in Washington, D.C. on May 18, 2009 (the “Forum”).  During the Forum, the NAIC announced its plans to review and address solvency issues within insurance holding companies.

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Read More NAIC Seeks to Monitor Non-insurance Entities in Insurance Holding Companies

On May 4, 2009, New Jersey State Senator Nia H. Gill introduced Senate Bill 2766 into the New Jersey State Senate to temporarily prohibit the use of credit-based insurance scoring by property-casualty insurers in rate-making for personal lines insurance coverage.  The bill, as currently drafted, would suspend such use of credit-based insurance scoring until June 30, 2011. …
Read More New Jersey Senate Considering Ban on Credit-Based Insurance Scoring

The Government Accountability Office (the “GAO”) recently issued a report regarding its review of the steps made by the National Association of Insurance Commissioners (the “NAIC”) and state regulators to make rules regarding producer licensing, product approval, and market conduct regulation more uniform and reciprocal.  While the report notes that progress in these three areas has been made, the GAO believes that several challenges still remain. 

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Read More The Government Accountability Office Releases a Report on Insurance Regulation Uniformity and Reciprocity

According to industry reports, the U.S. Treasury Department is willing to inject up to $22 billion into the life insurance industry and has given preliminary approval to six life insurers to participate in the Troubled Asset Relief Program (“TARP”).  TARP is only available to life insurers with federally chartered banks, or savings-and-loan institutions. 

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Read More Treasury Opens TARP Funds to Certain Life Insurers

Late last month, the National Association of Insurance Commissioners (the “NAIC”) held a public hearing regarding the use of credit-based insurance scores by insurers.  The hearing served as a fact-finding session where opposing viewpoints were heard and discussed.  The topics covered included:  (1) what constitutes a credit-based insurance score; (2) an explanation of how insurers use credit-based insurance scores; and (3) how the current economic conditions are affecting policyholder premiums related to credit-based insurance scores. 

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Read More The National Association of Insurance Commissioners Holds Hearing Regarding Use of Credit-Based Insurance Scoring

On 7 May 2009, the Financial Services Global Competitiveness Group (FSGCG), which is co-chaired by the Chancellor, Alistair Darling, and former Citi Chairman, Sir Win Bischoff, produced a report on the future of the UK’s financial services sector. As the FSGCG consists of a number of members representing key stakeholders in the sector, this report reflects the view of the UK’s financial services leaders. …
Read More UK: Report on the Future of the UK Financial Services Sector

On Thursday, May 14, 2009, the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises (the “Subcommittee”) held a hearing titled, “How Should the Federal Government Oversee Insurance?” 

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Read More Hearing on Capitol Hill Asks Not Whether There Should be Federal Oversight of Insurance, but Rather How the Federal Government Should Oversee Insurance

Last month, the Obama Administration stated its position on the reauthorization of the National Flood Insurance Program (“NFIP”).  In a letter from Department of Homeland Security Secretary Janet Napolitano to Representative Barney Frank, chairman of the House Committee on Financial Services, the Obama Administration announced that it “supports meaningful reforms to the NFIP and reauthorization of the NFIP through Fiscal Year 2014.” 

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Read More Obama Administration Announces Position on the National Flood Insurance Program

In early May 2009, Florida’s Chief Financial Officer, Alex Sink, asked the Florida Legislature to ensure that Florida’s Inland Protection Trust Fund (IPTF) is adequately funded. The IPTF finances environmental clean-up on sites contaminated by leaking petroleum storage tanks.  Sink warned that failing to fund the IPTF could waste progress in remediating contamination that has been made. 

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Read More Florida Environmental Claims – Florida Chief Financial Officer Alex Sink calls for funding of Inland Protection Trust Fund