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An inquirer recently asked the New York Department of Financial Services Office of General Counsel (the “OGC”) whether (1) lunch bought for an insurance producer by an insurer qualifies as compensation to be disclosed under Regulation 194 (effective January 1, 2011); and (2) if it qualifies, how should an insurer maintain a record of the cost of that lunch when multiple producers are present at the lunch, but only one is the binding producer?  See N.Y. Dept. of Fin. Serv. Opinion No. 11-08-01 (August 5, 2011). …
Read More Keep Those Power Lunch Receipts; the New York Department of Financial Services May Consider Such Entertainment Expenses as Producer Compensation to be Disclosed

Connecticut Insurance Commissioner Thomas Leonardi told the Connecticut legislature’s Insurance and Real Estate Committee on Tuesday, November 15th, that the Connecticut Insurance Department (the “CID”) is currently considering options to revise requirements governing hurricane deductibles.  Commissioner Leonardi reported that following Hurricane Irene, Connecticut residents filed 58,002 claims, and as of October 31st, 64 days after the hurricane, $161 million have been paid to policyholders. …
Read More Connecticut Insurance Department Considers Change in Hurricane Deductible

This updates our June 29, 2011 blog posting.

On November 21, 2011, New York Superintendent of Financial Services Benjamin M. Lawsky announced the issuance of regulations (the “Regulations”) for the implementation of the amendments to Article 63 of the New York Insurance Code that created a Class 3 for special risks (also referred to as the “Free Trade Zone”). …
Read More New York Department of Financial Services Issues Regulations for Large Commercial Insureds

Massachusetts Attorney General Martha Coakley has sent a letter to the Massachusetts State Rating Board requesting that a hearing be held to review the hurricane models used by insurers to set rates for homeowners’ insurance.  The Attorney General claims that some insurers are using models that are untested or discredited, which do not produce accurate estimates that are appropriate for Massachusetts and is resulting in possible overcharges. …
Read More Massachusetts Attorney General Calls For Hearing On Hurricane Models

In a statement last week, Therese Vaughn, Chief Executive Officer of the National Association of Insurance Commissioners (the NAIC”), stated that the state-based regulatory system in the United States should be deemed equivalent to the Europe Union’s Solvency II regulatory process.  According to Vaughn, while the United States will not have a single set of rules like the European Union, the state-based works and has been tested by the recent financial crisis. …
Read More National Association of Insurance Commissioners States That the United States Will Gain Solvency II Equivalence

In September, the Office of Foreign Assets Control (the “OFAC”), part of the United States Treasury Department, eased restrictions on trade with Libya through two revised general licenses that were published under the Libyan sanctions program.  A general third license was issued in November.  Together, these new licenses permit a wide range of past and new transactions in Libya, including the placement of insurance and reinsurance, which are subject to certain requirements and limitations. …
Read More OFAC Eases Restrictions on Transactions in Libya

On October 26, 2011, the United States Securities and Exchange Commission (“SEC”) adopted final rules implementing provisions of the Dodd-Frank Act requiring investment advisers that are registered with the SEC that advise one or more private funds and manage at least $150 million in private fund assets to file Form PF with the SEC. …
Read More SEC Issues Final Rules on Form PF Reporting Requirements of Investment Advisors

As we discussed earlier this week (here), the United States Treasury Department (the “Treasury”) announced the appointments of 15 individuals to serve as members of the Federal Advisory Committee on Insurance (the “Committee”).  The Committee serves as an advisory council to the Federal Insurance Office (“FIO”) and is discussed in more detail in our blog post (here). …
Read More NCOIL Believes a State Legislator Should Be Appointed to the Federal Advisory Committee on Insurance

On November 3, 2011, Sheila Bair, former Chairwoman of the Federal Deposit Insurance Corporation (“FDIC”), in a speech to attendees of the national fall meeting of the National Association of Insurance Commissioners, focused on systemic risk posed by credit-default swaps on the United States financial system.  Chairwoman Bair told the audience of insurance regulators and industry representatives that the credit-default market is still “highly concentrated” and “poses very serious systemic risks.” …
Read More Former FDIC Chairwoman States that Credit-Default Swaps Should be Regulated Like Insurance

On November 3, 2011, the New York Attorney General and the New York State Comptroller announced a joint initiative to investigate possible unpaid life insurance benefits.  Attorney General Eric Schneiderman called the new collaborative effort, “the largest and most comprehensive investigation of life insurance practices in the country.” …
Read More New York Attorney General and Comptroller Launch Joint Investigation into Unpaid Life Insurance Benefits