FBI Denies Eistence of Investigation

Paris says he can’t say whether the “proactive look” centers on the life industry, the property-casualty industry or both.

In recent weeks, Spitzer, a Democrat who is campaigning to become governor of New York, has reported having concerns about some reinsurance transactions involving American International Group Inc., New York, and other insurers and reinsurers.

State insurance regulators “have been tapped by the FBI to provide guidance in understanding the technical requirements for accounting and reporting of reinsurance transactions, including arrangements that limit a reinsurer’s risk of loss,” NAIC President Diane Koken says in a statement.

“We understand the FBI is seeking to determine whether the accounting practices recently identified represent an industry-wide concern,” Koken says. “Several states are currently pursuing a number of investigations in this area and have been reconsidering existing financial reporting standards since last December.”

The NAIC “routinely provides technical assistance to state and federal law enforcement agencies, as well as state and federal regulators in insurance-related investigations,” Koken says. “It is widely understood that investigations and examinations of insurer activity are treated as confidential.”