LEGISLATIVE UPDATE

Many state legislatures have ended their session, and following is an update on a number of reinsurance-related bills previously reported in this blog:

  • captives: There has been a good deal of activity on the captive front, and there have been a number of articles in the trade press about domestic jurisdictions attempting to become more competitive with each other and with off-shore locations. Hawaii has enacted general changes in HB 272 (effective July 1, 2007), allowing captives to be licensed as limited liability companies and changing tax, capital and surplus rules. Delaware has amended its statutes (HB 214, signed July 18, 2007) to allow special purpose financial captives, with new minimum capital requirements for such entities. Missouri has enacted legislation (SB 215, effective August 28, 2007) which provides for the formation of captive insurance companies.
  • alternative financing: Maine has allowed the edtablishment of special purpose reinsurance vehicles to facilitate the securitization of insurance risks. LD 1390, effective June 21, 2007.
  • reinsurance placement: New Hampshire has adopted rules (HB 782, effective January 1, 2008) clarifying its law with respect to reinsurance intermediaries, brokers and managers. Texas has proposed modifying its provisions relating to the placement of reinsurance with an unauthorized reinsurer. SB 1136, pending – see page 247 of 409.
  • credit for reinsurance: Connecticut has amended its regulations relating to credit for reinsurance with respect to the assets of a single beneficiary trust, effective May 30, 2007.
  • health reinsurance: Oregon has enacted provisions, effective June 25, 20007 (SB 183) making emergency provisions for a reinsurance program for medical progessional liability insurance policies provided by the state's Accident Insurance Fund.
  • voluntary restructuring: Rhode Island continues to legislate in the area of voluntary restrcturing of solvent insurers, expanding the definition of commercial run-off insurer effective July 6, 2007 to include a Rhode Island domestic insurer formed or re-activated for the purpose of entering into a voluntary restructuring.