The following is an update on what has recently transpired in the state legislatures and insurance departments relating to reinsurance:
- On October 2, 2008, the New Jersey Consumer Catastrophe Preparedness and Protection Act was introduced in the state Senate (Bill No. 2089). This Act would establish the New Jersey Catastrophe Fund, and cites instability in global reinsurance markets leading to an increase in reinsurance costs as one of the reasons for creating this fund.
- The New York Insurance Department issued a circular letter declaring the department’s position and expectations on the topic of contract certainty in all reinsurance contracts. Circular Letter No. 20 (2008).
- On the topic of assumption reinsurance, the New York Insurance Department issued an Office of General Counsel opinion stating that the insured’s consent must be obtained to effectuate a transfer of the contract and that state insurance law does not require foreign insurers’ assumption reinsurance transactions (save for life insurers) to be filed with the state insurance department. OGC Op. No. 08-07015.
- Florida implemented a paragraph within their state statutes that permits the commissioner to allow credit for reinsurance without full collateral for transactions involving assuming insurers that do not meet statutory requirements. 69O-144.007 (effective 10/29/2008)