Podcast Center
Video Center
Webcasts
Resource Center
Events
July 27, 2006 at 03:29 PM
The House Financial Services Committee agreed by a voice vote Wednesday to approve a measure that could make regulation of reinsurers and surplus lines coverage more uniform.
One key section of the bill, H.R. 5637, would establish uniform regulation of reinsurer solvency based on accreditation standards developed by the National Association of Insurance Commissioners, Kansas City, Mo.
The reinsurance provisions also would give the ceding insurer’s state of domicile sole authority to govern reinsurance contracts and determine whether or not a particular reinsurance contract qualified for credit for reinsurance.
The bill would streamline regulation of multi-state property-casualty surplus lines insurance transactions, by establishing the insured’s home state as the regulator over the transaction. The insured’s home state would be responsible for collecting and allocating premium taxes.
H.R. 3637 was introduced by Reps. Ginny Brown-Waite, R-Fla., and Dennis Moore, D-Kansas.
The House Judiciary Committee will consider the bill next and decide whether it will merely support the bill or hold its own review, Moore says.
