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Flashcards in Mayer-Brown Deck (12)
1

Dodd-Frank Act

Established FIO
Requires Federal Reserve Board regulate large insurers (systematically significant)

2

FIO responsibilities

Collecting information
Monitoring industry
Making recommendations on improving / modernizing insurance regulation

3

Covered agreements

Agreements between US and foreign nations that allow non-US insurers to operate in the US

4

FIO can preempt state measures it believes

Are inconsistent with covered agreements
Would result in less favorable treatment of insurers domiciled in foreign jurisdictions

5

Before FIO can preempt state law

Issue notice to state regulator
Consult with USTR
Issue notice in Federal Register
Give parties opportunity to comment
Establish reasonable timeframe

6

Non-Admitted Reinsurance and Reform Act of 2010

Designed to increase market choice (make it easier for large commercial purchasers to obtain insurance from non-admitted companies)

7

Premium tax

Charged by home state on insurance from a non-admitted insurer

8

Exempt commercial purchaser

Insurance purchaser with qualified risk manager
Over $100K in premiums in last year
Net worth > $20M OR revenue > $50M OR over 500 employees OR municipality > 50K

9

If home state of cedant is NAIC accredited and recognizes credit for reinsurance

Other states cannont deny credit

10

Laws/regulations/actions of non-domiciliary state are preempted if they

Restrict rights to resolve disputes
Require that a certain state's law is king
Attempt to enforce reinsurance contract on different terms
Apply state's laws to reinsurance of ceding companies not domiciled in state

11

Filing requirements in home state

Satisfy filing requirements in other states; other states can not ask for more than this

12

Dodd-Frank impact on surplus lines insurers

Removed "Diligent Search" requirement
Prohibited any state other than home state to require licensing
Taxing of multistate risk standardized; premium taxes paid only in home state