Regulatory Archives - Page 6 of 6 - The Insurance & Reinsurance Report

December 23, 2014 Regulatory

TRIA – When the Ball Drops, No Need to Panic But…

At exactly 12:00 a.m. on January 1, 2015, the New Year will be celebrated amidst ball drops and renditions of “Auld Lang Syne.” However, amidst the celebrations, the Terrorism Risk Insurance Act (TRIA) will expire. While there is a very real possibility that Congress will pass legislation renewing it in some form when the 114^th Congress convenes in January 2015, insurance companies and their insureds are already feeling the anticipated effects of the non-renewal and planning for the future.

Most large real estate transactions …

December 18, 2014 Regulatory

Update: “Where are You TRIA?” – Maybe Next Year

Last week we commented upon the debate surrounding the Terrorism Risk Insurance Act (TRIA). However, unlike the end of How the Grinch Stole Christmas where Cindy Lou Who ultimately found Christmas, TRIA did not make the cut of hastily passed legislation/nominations as the Senate gaveled to a close for this Congress.

While the House of Representatives passed TRIA by over 400 votes, outgoing Senator Tom Coburn, (R-OK) put a hold on the legislation while he sought a provision that would allow states to opt out …

December 1, 2014 Regulatory

Insurance and ISIS, Inc.

In recent weeks, the U.S. and British governments have unveiled new measures for fighting the Islamic State of Iraq and Syria (ISIS). These measures are designed to counter the terrorist group’s financial structure.

On the U.S. side, in an effort to starve ISIS of oil revenue, the U.S. Government in cooperation with others, have threatened sanctions against individuals and entities that purchase this black market oil or otherwise support ISIS. Insurance companies need to be vigilant in this environment about ensuring they are up-to-date on …

September 11, 2014 Emerging Issues / Regulatory

Too Big To Fail? MetLife To Fight Federal Agency’s Designation of the Insurer as a ‘Systemically Important Financial Institution’

In the wake of the 2008 financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). After Americans quickly learned that financial institutions previously thought “too big to fail” could, in fact, fail, Dodd-Frank equipped the Federal Reserve with unprecedented regulatory power to ensure safeguards were in place to prevent a similar crisis in the future. Dodd-Frank established the Financial Stability Oversight Council (FSOC), a government organization which has the authority to designate financial institutions as Systemically Important Financial Institutions (SIFIs). …

November 26, 2013 Regulatory

Force-Placed Meets the Feds – The Insurance Regulatory Field Grows

Recent news regarding lender-placed insurance (more colloquially known as “force-placed” insurance) has focused on state efforts to regulate the industry. Now the Feds are getting involved, specifically the Federal Housing Finance Agency (FHFA). FHFA is now prohibiting servicers of mortgages issued by Fannie Mae and Freddie Mac from receiving any compensation from those insurers providing the force-placed coverage. Fannie Mae and Freddie Mac write over 60 percent of all mortgages in the U.S. As such, this action is going to impact a large segment of …

April 9, 2013 Regulatory

A Rose by Any Other Name: New Federal Reserve Rule Defines “Financial Activity”

What’s in a name? What one is designated as or called in the regulatory world is important. It can literally define which regulatory regime one falls under. In the case of nonbank “financial institutions,” it can mean the difference between being considered for a “list” with additional rules and not. As this particular industry waits for the first list of nonbank systemically important financial institutions (SIFI), the Federal Reserve sought to clarify what constitutes “financial activity.”

On April 3, 2013, the Federal Reserve issued rule …

January 29, 2013 Regulatory

D.C. Circuit Court of Appeals Holds Recess Appointments to the National Labor Relations Board Unconstitutional – Could Affect the Consumer Financial Protection Bureau

Canning v. NLRB

Regulations created by the new Consumer Financial Protection Bureau (CFPB) under its current director could be challenged on the basis of a recent ruling from the U.S. Court of Appeals for the D.C. Circuit. On Friday, January 25, 2013, a three-judge panel held in Canning v. National Labor Relations Board that three recess appointments made to the National Labor Relations Board (NLRB) while the U.S. Senate was in pro forma session are unconstitutional because the Senate was not in recess. In pro …

January 3, 2013 Regulatory

Nearing Deadline to Fiscal Cliff, Congress Passes Law ‘Improving Program Efficiency’ For Medicaid/Medicare Reimbursements

On Friday, December 21, 2012, in the midst of the upcoming holidays and the discussions on how to avoid the Fiscal Cliff, Congress passed H.R. 1845 (2012) entitled The Medicare IVIG Access and Strengthening Medicare and Repaying Taxpayers Act of 2012. Of particular interest is Title II – Strengthening Medicare Secondary Payments. Title II amends Section 1862(b)(2)(B) of the Social Security Act (codified at 42 U.S.C. 1395y(b)(2)(B)) which permits the Secretary of Health and Human Services (the Secretary) to make conditional payments from the …