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On September 12, 2012, the National Association of Insurance Commissioners (NAIC) issued a press release announcing adoption of a new model law, the Risk Management and Own Risk Solvency Assessment Act. The requirements of this Act will become effective on January 1, 2015. …
Read More NAIC Announces Adoption of Risk Management and Own Risk Solvency Assessment (ORSA) Model Act

This updates our June 12, 2012 blog posting.

The California State Legislature has unanimously passed SB 1216 and SB 1448, both of which follow model laws recently put forth by the National Association of Insurance Commissioners (“NAIC”). …
Read More UPDATE: California State Legislature Approves NAIC Model Laws Regarding Enterprise Risk and Collateral Reduction for Alien Reinsurers; Bills with Governor for Signature

State insurance regulators working through the National Association of Insurance Commissioners (NAIC) joined their counterparts from the China Insurance Regulatory Commission (CIRC) to further regulatory cooperation on issues impacting both countries. The U.S.-China Insurance Regulation Seminar was held in Qingdao, China on July 24th and 25th, 2012.  This seminar is the eighth time that such talks have been held between the parties. …
Read More NAIC-CIRC Dialogue Advances

We have previously reported on the English and Scottish Law Commissions’ (the Commissions) review of English insurance contract law. The review was launched in 2006 and since then has proposed reforms across diverse areas of insurance contract law. …
Read More UK: The Joint Law Commissions’ June 2012 Consultation on The Business Insured’s Duty of Disclosure and the Law of Warranties

U.S. House Representative from Michigan Hansen Clarke (D) proposed legislation on July 13, 2012 that would prohibit insurance companies from using credit scores to determine automobile insurance rates.   The bill, H.R. 6129, is titled the “Ban the Use of Credit Scores in Auto Insurance Act,” and was referred to the House Committee on Financial Services. …
Read More Bill to Ban the Use of Credit Score in Insurance Rating Introduced into United States House of Representatives

As of July 2, 2012, the seasoning requirements under NJAC 11:1-10.4 for foreign and alien property and casualty insurers have been reduced.  Now, an insurer seeking a New Jersey Certificate of Authority to transact property and casualty insurance must have only three (3) years of qualifying operating history instead of five (5) years. …
Read More New Jersey Reduces Seasoning Requirements for Foreign and Alien Property and Casualty Insurers

Florida has amended its captive law pursuant to H.B. 1101, reducing minimum capital and surplus requirements for industrial insured captives, expanding the lines of insurance that may be written by captives, and recognizing pure and special purpose captive insurance companies as distinct from traditional Florida domestic insurers. …
Read More Florida Amends Captive Law

In June 2012, the Senate Committee on Insurance passed Assembly Bill 999 by a vote of five to three.  The bill, sponsored by Commissioner Jones and the California Department of Insurance, modifies the long-term care insurance premium rate development process and requires that consumers be permitted to review policy language before purchasing a policy. …
Read More California Senate Committee Passes Long-Term Care Bill

Back in March, the UK Government confirmed that it would change the law on criminal cartels, so that conviction would no longer require proof of dishonesty.  This change could potentially see participation in perfectly lawful and legitimate activities that may involve an element of collective price setting, such as the Lloyd’s subscription market or insurance pools, becoming a criminal offence for the individuals concerned, punishable by up to five years in prison. …
Read More UK: Proposed Changes to Criminal Cartel Offence Creates Risks for Insurance Markets