Regulatory

Subscribe to Regulatory via RSS

In a December 2011 letter to the Federal Insurance Office (FIO),1 the National Risk Retention Association (NRRA) advised FIO that revisions are needed to stop the states from encroaching on risk retentions groups’ (RRGs’) rights to operate nationally when licensed in a single state.2  …
Read More NRRA Appeals to FIO for Reform of Liability Risk Retention Act

The U.S. Government Accountability Office (“GAO”) has issued a report (GAO-12-16, the “Report”) regarding state implementation of the Liability Risk Retention Act of 1986 (“LRRA”).  The LRRA permits the formation of risk retention groups (“RRG”), whereby similar businesses with similar risks can self-insure their commercial liability on a group basis. …
Read More GAO Issues Report on Liability Risk Retention Act; Calls for Clarifications by Congress

Scott Wallace, the President and CEO of Citizens Property Insurance Corporation (“Citizens”), has announced his resignation to be effective April 2012.  The timing coincides with the completion of Florida’s most recent legislative session, which began today. …
Read More Florida Citizens President and CEO Wallace Announces Resignation

The Interstate Insurance Product Regulation Commission (“IIPRC”) issued a press release on January 6, 2012 (the “Release”) announcing that Illinois will accept variable life and annuity product filings using Interstate Insurance Compact (“Compact”) standards.  The Compact is a modernization initiative promoting uniform product standards across states. …
Read More Interstate Insurance Product Regulation Commission Announces That Illinois Accepts Variable Product Filings Through the Compact

Representative Bill Hager, R-Boca Raton, filed HB 1113 (the “Bill”) in the Florida House of Representatives at the end of December 2011 that would place new restrictions on claims bills and which lawmakers can file such bills.  Claims bills, which are based on the state’s sovereign immunity laws, generally limit the liability of government agencies to $200,000. …
Read More Florida Bill Proposes to Limit Claims Bills

Concerns over the Medical Loss Ratio (“MLR”), a key requirement under the Patient Protection and Affordable Care Act of 2010 (“PPACA”), were expressed at a House Subcommittee on Investigations, Oversight and Regulations (the “Subcommittee”) hearing in mid-December over how it will reduce competition among healthcare insurers and harm healthcare insurance agents and brokers.  The Subcommittee is a subset of the House Small Business Committee. …
Read More Congressional Panel Expresses Concern over Medical Loss Ratio

On December 19, 2011, the head of the Connecticut Insurance Department (the “CID”), Commissioner Thomas Leonardi, announced the signing of a memorandum of understanding (“MoU”) with the German Federal Financial Supervisory Authority (“BaFin”), the governmental body responsible for financial regulation in Germany. Under the MoU, the CID and BaFin may request assistance from one another, including obtaining information on regulated companies and individuals. …
Read More Connecticut Insurance Department Announces New Cooperation Agreement with Germany

The Connecticut Insurance Department issued a bulletin on December 19, 2011 (the “Bulletin”), explaining the training requirements mandated by Sections 38a-432a-1 to 38a-432a-8 of the Regulations of Connecticut State Agencies (the “Regulation”) for insurance producers who sell annuity products.  The Regulation goes into effect on February 18, 2012, and implements the National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation in Connecticut. …
Read More Connecticut Issues Guidance on Annuity Suitability Training Requirements

On December 12, 2011, the Illinois Department of Insurance issued a revised bulletin (the “Bulletin”) regarding the use of retained asset accounts by life insurance companies.  Retained asset accounts, for purposes of the Bulletin, are mechanisms by which an insurer or entity acting on behalf of an insurer may settle proceeds payable under a policy by depositing such proceeds into an account, and retaining them in accordance with the terms of supplementary contract not involving annuity benefits. …
Read More Illinois Issues Revised Bulletin on Use of Retained Asset Accounts

Last month, the Life Insurance and Annuities (A) Committee of the National Association of Insurance Commissioners (“NAIC”) formed a sub-group charged with reviewing issues surrounding contingent annuities.  The charge comes in response to industry disagreement over the classification of contingent annuities. …
Read More NAIC Examines Contingent Annuities