Regulatory

Subscribe to Regulatory via RSS

The Delaware Department of Insurance has issued informal advice that those captive insurance companies that would like to obtain licensing in Delaware in the 2010 calendar year should submit their applications to the Department no later than November 24, 2010. …
Read More Deadline Approaching for Licensing Captive Insurance Company in Delaware in 2010

Ambac Financial Group Inc., parent of the troubled Wisconsin-domiciled bond insurer Ambac Assurance Corp., filed for Chapter 11 bankruptcy relief on November 8, 2010.  As was alluded to in our blog post last week, Ambac has been unable to raise additional capital or come to terms with its debt holders.  Additionally, while Ambac had originally sought to enter bankruptcy as part of a prepackaged agreement, this too failed. …
Read More Ambac Financial Group, Inc. Files for Chapter 11 Bankruptcy

In the light of the Lehman collapse, the FSA has been taking steps to improve client asset protection. On 20 October 2010 it published a policy statement giving details of some changes to the client assets regime which would take effect on a variety of dates in 2011. …
Read More UK: FSA Enhances Client Asset Protection

In a letter to CEIOPS dated 29 October 2010, the European Commission has confirmed the countries that will undergo the first wave of equivalence assessments under the Solvency II regime. Bermuda and Switzerland will undergo a full assessment and Japan will be assessed for equivalence in relation to reinsurance under Article 172 only. This reflects the draft advice published by CEIOPS in July 2010 (see here). …
Read More EU: European Commission Confirms First Wave of Solvency II Equivalence Assessments

On 29 October 2010, the Law Commission published an Issues Paper on whether the requirement for a formal marine policy under section 22 of the Marine Insurance Act 1906 should be repealed. Section 22 states that a contract of marine insurance will be inadmissible in evidence unless it is “embodied in a marine policy“. …
Read More UK: Law Commission Publishes Issues Paper 9 Proposing Repeal of the Need for a Formal Marine Policy

On October 21, 2010, the Executive and Plenary committees of the National Association of Insurance Commissioners (“NAIC”) voted to adopt a model regulation containing the definitions and methodologies for calculating medical loss ratios as stipulated under the Patient Protection and Affordable Care Act (“PPACA”).  The model was delivered to Health and Human Services (“HHS”) on October 27, 2010 for certification. …
Read More NAIC Adopts Model Regulation for Final Medical Loss Ratios

This updates our October 26, 2010 posting.  With 61% of precincts reporting, 58% of the voters in the State of Washington have rejected Initiative 1082 (“I-1082”).  I-1082 would have allowed for the privatization of workers’ compensation insurance, which currently is only available through the Washington Department of Labor and Industries. …
Read More UPDATE: Washington Voters Reject Elimination Of Workers’ Compensation Monopoly

Effective October 1, 2010, the New York Insurance Department (the “Department”) has authority to review health insurance rate requests before they go into effect.   Before this “prior approval” authority went into effect, health insurers could simply increase their rates by filing with the Department and notifying customers of the change under a system known as “file and use.” …
Read More NYID Implements “Prior Approval” of Health Insurance Rates

This updates our May 13, 2010 posting.  On October 25, 2010, the New Jersey Assembly passed A.2360 (the “Bill”) by a vote of 77-0, which would permit a captive insurance market to exist in New Jersey.  The Bill is based largely on Vermont’s captive insurance bill, which is generally viewed as the state model with the best design for the captive insurance market so far. …
Read More Captive Bill Passed By New Jersey Assembly; Next Stop New Jersey Senate