New York Issues Final Cybersecurity Regulation

On February 13, 2017, the New York Department of Financial Services (NYDFS) adopted the final version of its first-of-its-kind cybersecurity regulation, “Cybersecurity Requirements For Financial Services Companies” (23 NYCRR 500). This regulation took effect on March 1, 2017. The final regulation reflects several of the comments offered during the final comment period that concluded on January 27, 2017. For a prior list of significant changes from the initial version to the second version, please see our blog post located here.

Most of …

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NYDFS Issues Updated Cybersecurity Regulation

The New York Department of Financial Services (NYDFS) recently issued an updated version of its proposed cybersecurity regulation, “Cybersecurity Requirements For Financial Services Companies” (23 NYCRR 500). The updated proposed regulation reflects several of the comments offered during the initial public notice and comment period that concluded on November 14, 2016. Some of the most noteworthy changes in the revision are as follows:

  • Section 500.04 — NYDFS clarified that while a Covered Entity must designate a qualified individual to perform the responsibilities
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Cease and Desist: Is This the Beginning of the End for Concierge Medicine Practices?

A small but growing trend to regulate the practice of “concierge medicine” (or “retainer medicine”) could significantly impact the healthcare and insurance industries. On October 11, 2016, the State of Washington Insurance Commissioner issued a Cease and Desist Order against a dental practice in that state, David Ford, DDS dba David Ford Dental. The order obliges the dental practice to immediately cease and desist from:

  1. Engaging in or transacting the unauthorized business of insurance or acting as an unregistered health care service contractor in the
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What Would the Insurance Provisions of Dodd-Frank Look Like Under the Trump Administration?

The incoming Trump Administration has already signaled its intent to repeal, or at the very least reform, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). To date, President-elect Trump has not signaled what changes he would make with respect to the insurance provisions of Dodd-Frank.  However, there is a bill in Congress that provides at least some insight as to what these changes might look like.

In September 2016, Congressman Jed Hensarling (R-TX), Chairman of the House Financial Services Committee, introduced H.R. …

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Comments on NYSDFS Cybersecurity Regulation Begin Pouring In

On September 28, 2016, the New York State Department of Financial Services (DFS) released for comment a proposed new regulation entitled Cybersecurity Requirements for Financial Services Companies (23 N.Y.C.R.R. Part 500). Various industry groups have offered comments and expressed concerns about some of its requirements. These concerns include the costs of compliance and the scope of entities regulated by the proposed rule. Among the organizations offering comments are the Excess Lines Association of New York (ELANY) and the American Association of Managing General Agents (AAMGA).…

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Just Down the Hall — D.C. Appeals Court Hears Appeal Over MetLife’s SIFI Status

On March 30, 2016, Judge Rosemary M. Collyer of the U.S. District Court for the District of Columbia stripped MetLife of its designation as a nonbank systemically important financial institution (nonbank SIFI). She held that the designation was arbitrary and capricious as the Financial Stability Oversight Council (FSOC) failed to follow proper administrative procedures during the evaluation process. Just over a week later, FSOC walked down the hall of the U.S. Courthouse at 333 Constitution Avenue, NW and filed its appeal. On October 24, 2016, …

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U.S. Court of Appeals Issues Major Ruling Against CFPB

The U.S. Court of Appeals for the District of Columbia Circuit recently issued a decision in PHH v. CFPB that fundamentally transforms the power of one of the newest and most powerful agencies in the federal government, the Consumer Financial Protection Bureau (CFPB). First, the court held that the structure of the CFPB was unconstitutional and struck down a provision that only allows the president to dismiss the director of the CFPB for cause. After this decision, the director now serves at the pleasure of …

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Looking for Balance in Principle-Based Reserving

In a recent article in Law360, Frederick J. Pomerantz and Aaron J. Aisen, attorneys in Goldberg Segalla’s Global Insurance Services Practice Group, provide a comprehensive overview of Principle-Based Reserving and the reasoning behind the National Association of Insurance Commissioners’ decision to adopt this new system. 

The NAIC recently announced it adopted the recommendation of the Principle-Based Reserving Implementation Task Force to switch to PBR starting Jan. 1, 2017. As Fred and Aaron write in their analysis, “There are still a number of outstanding issues

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Change in Court Rules Could Increase Legal Costs of Connecticut-Licensed Insurers Appearing Before Commissioner

The State of Connecticut recently revised Section 2-16 of the Connecticut Superior Court Rules to require that an attorney not admitted in the State of Connecticut be admitted pro hac vice prior to appearing on behalf of a client before the Connecticut Insurance Department or any other state or municipal government agency. As with any pro hac vice admission in Connecticut, out-of-state attorneys will also be required to retain local counsel as a condition of any appearance.

This represents a significant change from the current …

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And Then There Were Two — GE Capital No Longer a Nonbank SIFI

GE Capital is no longer a nonbank SIFI. The Financial Stability Oversight Council (FSOC) formally announced on June 29, 2016 that it voted unanimously on June 28, 2016 to rescind the designation. In conjunction with the vote, FSOC released a 23-page opinion outlining the basis for its decision. In short, FSOC determined that GE “executed significant divestitures, transformed its funding model, and implemented a corporate reorganization.” It determined that “these and other changes at GE . . . have significantly reduced the potential for [GE’s] …

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