Regulatory

Subscribe to Regulatory via RSS

The fifth Quantitative Impact Study on the Solvency II implementing measures (QIS5) was launched by the European Commission (the Commission) on 23 August 2010. The study will run until November 2010 and the Commission notes that it is aiming for a participation rate of at least 60% of EU insurance and reinsurance companies and 75% of EU insurance groups. Of particular importance to the Commission is participation by smaller insurance companies and insurance providers specialised in specific business lines. …
Read More EU: Fifth Solvency II Quantitative Impact Study Begins with a Call for Participation From the European Commission

Earlier this month, the Massachusetts Division of Insurance (the “Division”) struck a deal with Health New England to settle a dispute over rate increases.  In the winter of 2009, Health New England, a Springfield, Massachusetts health insurer, attempted to increase its health insurance premiums by a range of 11.5% to 21.3% for about 21,000 customers.  The Division denied this increase on April 1, 2010, along with other insurers who sought double-digit increases. …
Read More Massachusetts Health Insurer Settles With Division of Insurance On Rate Increases

On 17 August 2010 the China Insurance Regulatory Commission (the CIRC) issued basic guidelines for the internal controls at Chinese insurance companies, which include monitoring their allocation and management of insurance funds. …
Read More China: China Insurance Regulatory Commission Issues Guidelines to Strengthen Insurers’ Control of Funds

The People’s Bank of China (PBC) announced on 17 August 2010 a pilot scheme to permit Hong Kong and Macau insurers, banks and certain other financial institutions, with the approval of the PBC, to invest in the Chinese mainland’s 48.8 trillion renminbi (US$7.2 trillion) interbank bond market. Each institution will receive a quota for Chinese mainland interbank bonds according to its individual situation. The move has been welcomed by the Hong Kong Monetary Authority (HKMA). …
Read More Hong Kong: Pilot Scheme to Permit Insurers to Tap China’s Mainland Interbank Bond Market

The National Association of Insurance Commissioners (“NAIC”) has released a derivatives risk mitigation proposal (“Proposal”) prepared by the American Council of Life Insurers (“ACLI”) for interim comment.  The Proposal would modify the formula for calculating risk-based capital (“RBC”) to reflect insurers’ use of derivatives to hedge  the risks of default or adverse change in fair market value to fixed income securities and common stocks. …
Read More NAIC Releases Derivatives Risk Mitigation Proposal for Comment

EAPD’s New York office will host an Insurance Federation of New York (IFNY) Breakfast on Thursday, September 30, 2010 featuring New York State Insurance Department’s Deputy Superintendent and General Counsel, Martha A. Lees.  As General Counsel, Lees advises the Superintendent and other officers of the Department regarding a wide array of legal matters and is responsible for supervision of the Office of General Counsel. …
Read More Prominent New York State Insurance Department Official to Speak at IFNY Event

Last week, the Connecticut Supreme Court issued a ruling in which it placed several restrictions on the uses that the Connecticut Attorney General (AG) may make of documents subpoenaed from a Florida-based insurer during an antitrust investigation. …
Read More Connecticut Supreme Court Limits Attorney General’s Power to Disclose Documents Subpoenaed from Insurer

Earlier this year, the Independent Insurance Agents and Brokers of New York (the “IIABNY”) and the Council of Insurance Brokers of Greater New York (the “CIBGNY”) filed an Article 78 petition in New York State Supreme Court in Albany County against the New York Insurance Department (the “NYID”) in order to prevent the mandatory producer compensation disclosure requirements of Regulation 194[1]. …
Read More New York Attorney General Files Response to Article 78 Petition to Prevent the Producer Compensation Disclosure Requirements of Regulation 194; Petitioners Gear Up for Rebuttal

Effective July 1, 2010, Florida joined several other states in reducing the liability of trustees of irrevocable life insurance trusts (“ILITs”), with the enactment of § 736.0902 – Non-application of prudent investor rule.  The Florida prudent investor rule protections relieve the trustee from any duty to manage the life insurance as an investment.  Further, it relieves the trustee from liability for any loss sustained with respect to the life insurance. …
Read More Florida’s Statutory Reduction of ILIT Trustee Liability