Lawmakers have brought back a bill that could change states’ ability to weigh in on reinsurance arrangements.
The bill, H.R. 1065, would give a ceding insurer’s home state sole regulatory authority to determine whether a particular insurer qualified for credit for reinsurance.
The bill also would bar the extraterritorial application of state reinsurance laws and allow ceding insurers and reinsurers to resolve disputes using contractual arbitration clauses.
Other provisions would establish an insured’s home state as the primary regulator for multistate surplus lines risks and make it easier for sophisticated customers to do business with non-admitted carriers.
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Reps. Dennis Moore, D-Kan., and Ginny Brown-Waite, R-Fla., are the primary sponsors of H.R. 1065.
The bill has 41 original co-sponsors including Rep. Paul Kanjorski, D-Pa., the chairman of a House Financial Services Committee subcommittee, and Rep. Spencer Bachus, R-Ala., the most senior Republican on the House Financial Services Committee.
Moore and Brown-Waite sponsored a similar bill in 2006.
The House passed the 2006 bill by a 417-0 vote, but the bill failed to surface in the Senate.