California Governor Schwarzenegger is expected to sign into law SB 430, a bill that will set the commitment of participating insurers to fund the California Earthquake Authority (“CEA”) at $1.3 billion.
Regulatory
California Department of Insurance Clarifies New Surplus Broker License Requirements
By Troutman Pepper Locke on
The California Department of Insurance (“DOI”) has issued a bulletin clarifying Assembly Bill 1639, which takes effect January 1, 2008. The new law affects resident and non-resident producers transacting surplus lines business.
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SEC to Explore Shareholder Litigation Reform
By Troutman Pepper Locke on
The Wall Street Journal reports that the SEC will hold a roundtable in the spring of 2008 on issues relating to shareholder litigation reform, including the role played by insurers in indemnifying companies and individuals and the cost of paying for attorneys fees in securities class action lawsuits.
The SEC and Federal Reserve Announce Final Joint Rules on Exemptions for Banks from the Definition of a Broker
By Troutman Pepper Locke on
Posted in Regulatory, United States
On Monday, September 24, 2007, the SEC and Federal Reserve issued a press release announcing final joint rules (originally proposed in December 2006) to implement certain provisions of the Gramm-Leach Bliley Act.
House Subcommittee to Address Fairness of Credit-Based Insurance Scores
By Troutman Pepper Locke on
The House Subcommittee on Oversight and Investigations (the “Subcommittee”) will hold a meeting, entitled “Credit-Based Insurance Scores: Are They Fair?,” on October 2, 2007 to discuss the growing use of credit-based insurance scores.
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Breaking News: House Approves TRIA Extension
Despite news reports that the White House plans to veto the Terrorism Risk Insurance Revision and Extension Act of 2007 (“TRIREA”) in its current form, the U.S. House of Representatives overwhelmingly voted 312-110 today in favor of TRIREA, which would extend TRIA 15 more years and add group life insurance and domestic terrorism coverage.
New York Insurance Superintendent Recommends Alternative Workers’ Compensation Rating System
By Troutman Pepper Locke on
New York’s Insurance Superintendent, Eric Dinallo, recently issued a report analyzing the workers’ compensation rating system currently in place in New York State. The Report, which was required by the 2007 Workers’ Compensation Reform Act, proposes wholesale changes to the workers’ compensation rating system currently in place.
White House Opposes TRIA Extension
As we have recently reported on InsureReinsure.com, the Federal Terrorism Risk Insurance Program is due to expire at year-end. Congress is currently considering an extension of the Program, the Terrorism Risk Insurance Revision and Extension Act of 2007 (“TRIREA”), which we have discussed here, here, here, and here.
CBO Estimates Cost of TRIA Extension to be $8.4 Billion Over the Next Decade
The Congressional Budget Office (“CBO”) released a report last week that estimated the cost of extending the Federal Terrorism Risk Insurance Program to be $3.5 billion for the next five years and $8.4 billion for the next decade.
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More Rate Filings Denied In Florida
By Troutman Pepper Locke on
The Florida Office of Insurance Regulation (“FOIR”) denied eight more rate filings last week.