Regulatory

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In the UK, insurance business transfer schemes (known as Part  7 transfers) allow an insurer or reinsurer to transfer portfolios of insurance or reinsurance business from another entity by way of a court sanctioned regulatory mechanism.  

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Read More HM Treasury Publishes Responses Regarding its Part 7 Scheme Consultation

Michael Travaglini, who oversees the Massachusetts Pension Reserves Investment Management Board, recently voiced his disagreement with California Treasurer Bill Lockyer’s plan to form a state-owned bond insurer, saying that pension funds should not be in the business of insuring securities.  “I am very glad that in Massachusetts we are prohibited by our enabling statutes [from creating a bond insurer],” Travaglini said.  He continued, “I’m in the investment business, not the lending business in any way, shape or form. 

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Read More Massachusetts State Pension Fund Will Not (and Cannot) Form Bond Insurer

New York Superintendent of Insurance, Eric Dinallo, recently revealed that the New York State Insurance Department is working “avidly” to alleviate the capital crisis at bond insurer FGIC.  FGIC was the subject of ratings downgrades by both Fitch Ratings and S&P earlier this year. …
Read More Dinallo: NY is Working “Avidly” to Solve the Crisis at FGIC

The FSA has restated the UKs support for the creation of a single market in financial services in Europe, and has called for further development of the existing arrangements for regulatory cooperation among national regulators. The recommendation was contained in the latest edition of what the FSA described as its ‘new look’ International Regulatory Outlook (IRO). 

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Read More UK: Regulatory: The Financial Service Authority (FSA) Calls for Increased Co-Operation in Europe

Last week, Fitch Ratings downgraded MBIA Insurance Corp. and its subsidiaries from AAA to AA, stating that the bond insurer’s pro-forma claims paying resources at year-end 2007 now fall below Fitch’s AAA capital targets by $3.4 to $3.8bn.  Instead, Fitch concluded that MBIA’s pro-forma claims paying resources fall squarely within its standards for AA capital. 

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Read More Fitch Downgrades MBIA to AA

The New York Senate Finance Committee (the “Committee”) has rejected several proposals in Former Governor Eliot Spitzer’s 2008-2009 Executive Transportation, Economic Development and Environmental Conservation Budget, which would have increased various civil penalties placed on insurance agents and brokers for violations of Insurance Law and related regulations. 

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Read More New York Committee Rejects Proposed Increases in Insurance Fines

Following the recent trend set by states such as California, Florida and New Jersey, the National Association of Insurance Commissioners (“NAIC”) has adopted a revised version of the Unfair Trade Practices Model Act (the “Act”) that limits the circumstances in which a life insurer can deny coverage to an individual based on the individual’s lawful past and future travel. 

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Read More NAIC Follows States Lead To Prohibit Travel Discrimination In Life Insurance Policies

On March 31, 2008, Treasury Secretary Henry M. Paulson, Jr. released the Department of the Treasury Blueprint for a Modernized Financial Regulatory Structure (the “Blueprint”) in a speech given at the Treasury Department.  The Blueprint is a series of recommendations for regulatory reform for U.S. financial services industries intended to broaden consumer protections, increase efficiencies, and provide market stability through stream-lined regulatory oversight.  A high-level view of the Blueprint was originally introduced on June 27, 2007. 

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Read More Treasury Secretary Proposes Sweeping Changes to Federal Oversight that Affects the Insurance Industry