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July 19, 2006 at 04:22 PM
Members of a U.S. House Financial Services Committee subcommittee today approved a measure that could make regulation of the reinsurance market and the property-casualty surplus lines market more uniform.
The committee’s Capital Markets, Insurance and Government Sponsored Enterprises Subcommittee passed H.R. 5637, The Nonadmitted and Reinsurance Reform Act of 2006, by a voice vote.
One provision of the bill relating to reinsurance would give the ceding insurer’s state of domicile sole regulatory authority for determining whether or not a particular insurer qualifies for credit for reinsurance, according to a summary prepared by the subcommittee staff.
Another provision would establish uniform regulation of reinsurer solvency based on accreditation standards established by the National Association of Insurance Commissioners, Kansas City, Mo.
A third provision would prevent states from applying their standards for reinsurance dispute arbitration to a ceding insurer with a domicile in another state or from requiring that a certain state’s law will govern reinsurance contract disputes.
