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This updates our May 2, 2011 blog post.

On May 11, 2011, Vermont Governor Peter Shumlin signed into law H.438 (the “Bill”) allowing for the incorporation of protected cells.  Multiple protected cells are combined to form a single sponsored captive insurance company. …
Read More Vermont Enacts Legislation in Hopes of Expanding Its Captive Insurance Market

This updates our May 3, 2011 blog post.  Several state regulators have joined together to form a special task force (“Task Force”) under the auspices of the NAIC to coordinate investigation of the claims procedures of certain life insurance companies.  In particular, states are examining the manner in which such companies investigate and determine whether a particular insured is deceased, and locate beneficiaries. …
Read More NAIC Task Force Established to Coordinate Investigation of Life Insurance Companies’ Claims Procedures

This updates our April 2011 Client Advisory and our May 2, 2011 blog post.  Today, New York Governor Andrew Cuomo announced certain nominations and appointments to his administration.  Among them was the nomination of Benjamin M. Lawsky, Cuomo’s current Chief of Staff, to serve as the Superintendent of the new Department of Financial Services (the “DFS”) to be created by legislation enacted as part of the 2011-2012 budget. …
Read More Cuomo Appoints Lawsky to head New York Department of Financial Services

The White House has issued a cybersecurity legislative proposal (the “Proposal”) aimed at improving cybersecurity for American consumers, the U.S. critical infrastructure, and the Federal Government’s own networks and computers.  In issuing the Proposal, the White House stated that the U.S. critical infrastructure, such as the electricity grid, financial sector, and transportation networks, have suffered repeated cyber intrusions, and that cyber crime is on the rise. …
Read More President Obama Proposes Cybersecurity Legislation

Following on the heels of double digit health insurance rate approvals last year, the Connecticut Legislature is considering S.B. 11, An Act Concerning the Rate Approval Process for Certain Health Insurance Policies, which would expand the current rate approval process administered by the Connecticut Department of Insurance (the “Department”). …
Read More Proposed Connecticut Law Requires Public Hearings for Health and Long-Term Care Rate Increases of 10% or More

Numerous states are currently examining certain claims procedures of life insurance companies.  In its most basic form, life insurance is designed to provide a death benefit to a named beneficiary upon the death of the insured life.  State law generally requires that carriers disburse death benefits to the named beneficiary in a timely manner, or, if the beneficiary cannot be located after due diligence, submit the payment to the state under the applicable escheat law.  State regulators are currently examining the manner in which life insurance companies investigate and determine whether a particular insured is deceased, and locate beneficiaries. …
Read More Claims Procedures of Life Insurance Companies Come Under Scrutiny

On April 25, 2011, the Rhode Island Superior Court (Silverstein, J.) ruled in favor of the constitutionality of the Voluntary Restructuring of Solvent Insurers Act (the “Restructuring Act”), a state statute enacted in 2002 that allows Rhode Island domestic commercial insurers and reinsurers (including those that redomesticate to Rhode Island) to enter into a commutation plan for their run-off business.  Under such a plan, the insurer/reinsurer agrees to pay policyholders/cedents the estimated value of their claims as of a set date in exchange for extinguishing the right to make any future claims. …
Read More Rhode Island Statute Allowing for the Commutation of a Solvent Insurer’s Run-Off Business Held Constitutional

The Vermont House of Representatives has passed legislation, H.438 (the “Bill”), that would allow for the incorporation of protected cells.  Under current Vermont law (Title 8, Section 6034) protected cells may be formed, but they are not officially recorded as existing legal entities with the Secretary of State. …
Read More Vermont Considering Legislation To Expand Captive Insurance Market