Mayer-Brown Flashcards
Dodd-Frank Act
Established FIO
Requires Federal Reserve Board regulate large insurers (systematically significant)
FIO responsibilities
Collecting information
Monitoring industry
Making recommendations on improving / modernizing insurance regulation
Covered agreements
Agreements between US and foreign nations that allow non-US insurers to operate in the US
FIO can preempt state measures it believes
Are inconsistent with covered agreements
Would result in less favorable treatment of insurers domiciled in foreign jurisdictions
Before FIO can preempt state law
Issue notice to state regulator Consult with USTR Issue notice in Federal Register Give parties opportunity to comment Establish reasonable timeframe
Non-Admitted Reinsurance and Reform Act of 2010
Designed to increase market choice (make it easier for large commercial purchasers to obtain insurance from non-admitted companies)
Premium tax
Charged by home state on insurance from a non-admitted insurer
Exempt commercial purchaser
Insurance purchaser with qualified risk manager
Over $100K in premiums in last year
Net worth > $20M OR revenue > $50M OR over 500 employees OR municipality > 50K
If home state of cedant is NAIC accredited and recognizes credit for reinsurance
Other states cannont deny credit
Laws/regulations/actions of non-domiciliary state are preempted if they
Restrict rights to resolve disputes
Require that a certain state’s law is king
Attempt to enforce reinsurance contract on different terms
Apply state’s laws to reinsurance of ceding companies not domiciled in state
Filing requirements in home state
Satisfy filing requirements in other states; other states can not ask for more than this
Dodd-Frank impact on surplus lines insurers
Removed “Diligent Search” requirement
Prohibited any state other than home state to require licensing
Taxing of multistate risk standardized; premium taxes paid only in home state
