Last week, both the Florida Senate and House passed legislation, Senate Bill 1894 and House Bill 853 respectively (the “Legislation”), to exempt surplus lines insurers entirely from the provisions of Chapter 627, except where specifically stated otherwise, which contains Florida’s rate and form filing statutes.
Read More UPDATE: Surplus Lines Insurer Exemption Legislation Passed By Florida Senate and House
Regulatory
Puerto Rico: Insurance Commissioner Considers 20% Reduction in Compulsory Auto Insurance Premiums
By Troutman Pepper Locke on
Posted in Latin American Developments, Regulatory
Under Ley 253 de 1995 (Ley de Seguro de Responsabilidad Obligatorio para Vehiculos de Motor), a system of compulsory minimum automobile coverage was instituted in Puerto Rico. The coverage, obtained from the Puerto Rican government itself, currently carries a premium of $99 per year. …
Read More Puerto Rico: Insurance Commissioner Considers 20% Reduction in Compulsory Auto Insurance Premiums
Brazil Raises Cession Limit to Occasional Foreign Reinsurers for Surety and Petroleum Lines
By Troutman Pepper Locke on
Posted in Latin American Developments, Regulatory
As previously discussed here, Brazilian law previously imposed a 10% limit on total annual premiums that a local insurer could cede to an occasional foreign reinsurer. On April 27, 2009, however, the Superintendencia de Seguros Privados (SUSEP), the Brazilian insurance regulator, relaxed that limitation significantly, but only as to two lines of business. …
Read More Brazil Raises Cession Limit to Occasional Foreign Reinsurers for Surety and Petroleum Lines
House Panel Hearings on Optional Federal Charter
By Troutman Pepper Locke on
On April 28, 2009, Democratic Representative Barney Frank, chairman of the U.S. House of Financial Services Committee, told the Reuters Global Financial Regulation Summit in Washington that a congressional panel will examine whether insurance companies should be regulated under an optional federal charter, which would give insurers a choice between state or federal regulation. …
Read More House Panel Hearings on Optional Federal Charter
Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds
United States Senator Bill Nelson (D-FL) introduced a bill last week to provide a guarantee for the Florida Hurricane Catastrophe Fund from the Federal Reserve. The legislation would also provide federal guarantees for the catastrophe funds in Texas and Louisiana and the earthquake insurance pool in California (the “Cat Funds”).
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Read More Senate Bill Seeks Federal Backstop for Four States’ Catastrophe Funds
Florida Hurricane Catastrophe Fund Reforms May Impact Demand for Private Reinsurance Coverage
By Troutman Pepper Locke on
As reported here, here, and here, Florida legislators and insurance regulators actively are seeking to shed some of the state’s hurricane risk and to strengthen the financial condition of the Florida Hurricane Catastrophe Fund (the “Fund”). As reported here, the Fund, which was established after Hurricane Andrew, provides reinsurance coverage for residential property insurers in Florida in the event of major windstorm events.
FSA to Simplify FSCS Compensation Rules
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The FSA has published Policy Statement 09/7 (the PS) in connection with its review of the limits under the Financial Services Compensation Scheme (FSCS). The PS addresses changes to FSCS limits in connection with insurance, insurance mediation, investments and home finance mediation and home finance lending and administration which will come into effect on 1 January 2010. …
Read More FSA to Simplify FSCS Compensation Rules
UK: The Association of British Insurers (the ABI) Publishes a Statement of Principles on Trade Credit Insurance
By Troutman Pepper Locke on
For the first time, the ABI has on 21 April published guidance governing the trade credit insurance industry. The guidance, which is not legally binding, is published in the form of a Statement of Principles outlining how trade credit insurers operate and what policyholders can expect. …
Read More UK: The Association of British Insurers (the ABI) Publishes a Statement of Principles on Trade Credit Insurance
Texas Senate Approves Bill Authorizing Continued Operation of the Texas Department of Insurance
By Troutman Pepper Locke on
Posted in Regulatory, United States
On April 20, 2009, the Texas State Senate issued a press release announcing approval of Senate Bill 1007 (“SB 1007” or the “Bill”) authorizing continued operation of the Texas Department of Insurance (“TDI”) and slightly reforming certain TDI operations. …
Read More Texas Senate Approves Bill Authorizing Continued Operation of the Texas Department of Insurance
UPDATE: NAIC Releases Statement Opposing The National Insurance Consumer Protection Act of 2009
By Troutman Pepper Locke on
Posted in Regulatory, United States
As previously reported here, Representatives Melissa Bean, D-Ill., and Ed Royce, R-Calif., introduced the National Insurance Consumer Protection Act of 2009 (“H.R. 1880”) in the House of Representatives on April 2, 2009. H.R. 1880 would establish an optional, national system of regulation and supervision for insurers and producers. …
Read More UPDATE: NAIC Releases Statement Opposing The National Insurance Consumer Protection Act of 2009