Regulatory

Subscribe to Regulatory via RSS

A public hearing on August 20, 2010 will explore the possibility of increasing insurance capacity in New York by easing access to unauthorized insurers. The New York State Insurance Department (“NYID”) is soliciting input from the public as it determines whether to revise eligible coverages on the Export List, as set forth in Insurance Department Regulation 41 (11 NYCRR 27). …
Read More New York Insurance Department to Hold Hearing on August 20, 2010 on Whether to Expand the Export List Under Regulation 41

Proposed legislation that would limit a tax deduction for reinsurance premiums paid to a foreign affiliate of a US insurer has drawn the formal opposition of the German government.  Ambassador Klaus Scharioth, in a recent letter to House Ways and Means Chairman Sander Levin (D-MI), said that the so-called Neal Bill (HR 3424) “goes well beyond” the undisputed goal of combating tax avoidance and evasion and, as a result, conflicts with provisions of the German-US tax treaty. …
Read More German Government Opposes US Legislation Limiting Deductibility of Reinsurance Premiums

On 12 July 2010 the Secretary for Financial Services and the Treasury, Professor K C Chan, released a consultation paper entitled “Proposed Establishment of an Independent Insurance Authority”. The insurance sector and the public have a 3 month consultation period (which ends on 11 October 2010) in which to provide their views. …
Read More Hong Kong: Government Proposes to Establish Independent Insurance Authority

The Obama Administration, through the Office of Management and Budget, has reiterated its position that it is against the expansion of the National Flood Insurance Program (“NFIP”) to include coverage for windstorm damage. …
Read More Obama Administration Reiterates Opposition of NFIP Expansion to include Windstorm Coverage

On 9 July 2010, the Financial Services Authority (FSA) fined David Head £10,500 for putting customers at risk of receiving unsuitable advice on Payment Protection Insurance (PPI). Head, a director of Essex based mortgage and insurance broker network, FT Compliance Services Limited, and an FSA approved person, failed properly to supervise insurance and mortgage brokers who advised on PPI sales. …
Read More UK: FSA Fines Approved Person for Unsuitable PPI Advice

The Law Commission has published an Issues Paper considering the insured’s post-contract duty of good faith, in particular, the law of fraudulent claims, focusing on what remedies should be available to insurers if policyholders act fraudulently. …
Read More UK: Law Commission Publishes Paper on The Insured’s Post-Contract Duty of Good Faith

This updates our December 22, 2008 blog, and other related postings.  In December 2008, the U.S. Securities and Exchange Commission (the “SEC”) adopted Rule 151A (the “Rule”) classifying equity-indexed annuities (“EIAs”) as securities, and subjecting them to federal regulation effective 2011.  The Rule has been hotly debated, as some believe that EIAs are adequately regulated by states and that federal regulation would only result in additional costs in registering and selling the products. …
Read More Financial Reform Package Preserves the Role of State Insurance Departments in Regulating Indexed Annuities