Does NAIC have authority to revise reinsurance collateral requirements?

NAIC is the National Association of Insurance Commissioners – a membership-based organization.  It also has become a “regulator” of the insurance industry with ambition for expanding that role – as noted in the comments in the article that follows.

Final details remain to be put in place, but the nation’s insurance regulators, after nearly a decade of study, have adopted a “conceptual framework” to modify the 100 percent collateral requirements for foreign reinsurers.

After the action by the National Association of Insurance Commissioners, at its winter meeting here, one insurers’ trade group vowed to fight against implementation at state and federal levels.

“This proposal sets forth a conceptual framework only,” said a statement from New Jersey Banking and Insurance Commissioner Steven M. Goldman, chair of the NAIC Reinsurance Task Force, which drafted the proposal.

“Now, we must focus on developing the specifics of this new regulatory regime and taking the appropriate legislative steps to make the proposal a reality,” he said. Continue reading “Does NAIC have authority to revise reinsurance collateral requirements?”

How far will FAR go with Katrina? New disclosure rules cover three year period after final payment on federal contracts.

The Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council (Councils) have agreed on a final rule amending the Federal Acquisition Regulation (FAR) to amplify the requirements for a contractor code of business ethics and conduct, an internal control system, and disclosure to the Government of certain violations of criminal law, violations of the civil False Claims Act, or significant overpayments.

The Final Rule published November 12, 2008 and becomes effective this Friday.

Obviously, the Rule will impact qui tam claims in the future and may have an impact on the claim filed by the Rigsby sisters.  The requirements of federal contracts trickle down to subcontractors – indicating the adjusting and engineering firms used by State Farm and other insurers would be subject to these requirements.

Rules such as this are general principles that apply broadly and likely do not provide the “special treatment” to insurers found  in their FEMA/NFIP contracts.

Arnold & Porter has excellent summary, Final Compliance Rule Requires Broad Mandatory Disclosure Based on “Credible Evidence” of Wrongdoing.

The Final Rule follows two earlier proposed rules2 and implements the so-called Close the Contractor Fraud Loophole Act,3 which directed the elimination of certain exceptions contained in the First Proposed Rule. The Final Rule is effective December 12, 2008. Continue reading “How far will FAR go with Katrina? New disclosure rules cover three year period after final payment on federal contracts.”

Ah-rump (kiss kiss) Kamp Re

The Insurance King with the big nose ring snake-king-2
was protected by Kamp Re
And every night by the pale moonlight
It sounded like this to me…

Ah-rump (kiss kiss), Ah-rump (kiss kiss)
Ah-rump, Ditty-aye-dee-a-a-a
Ah-rump (kiss kiss), Ah-rump (kiss kiss)
Ah-rump, Ditty-aye-dee-a-a-a

As the years went by like one, two, three
Kamp Re still held the money.
And every night by the pale moonlight
It sounded like this to me…

Ah-rump ma-ma, Ah-rump, ma-ma
Ah-rump, Ditty-aye-dee-a-a-a
Ah-rump ma-ma, Ah-rump, ma-ma
Ah-rump, Ditty-aye-dee-a-a-a

As the years went by like one, two, three
Kamp Re had 36 monthly options
And every night by the pale moonlight
It sounded like this to me… Continue reading “Ah-rump (kiss kiss) Kamp Re”