On September 29, 2008, New York State Insurance Superintendent Eric Dinallo and Chief Executive Officer Matthew Elderfield of the Bermuda Monetary Authority (“BMA”) signed a memorandum of understanding (the “MoU”). The MoU provides a formal basis for consultation, cooperation and coordination between the New York State Insurance Department (“NYSID”) and the BMA in connection with the regulation of companies and persons engaging in insurance activities subject to the supervision of the NYSID and/or the BMA. Under the MoU, the regulators would work with each other to, among other things, obtain, confirm or verify information about a regulated entity, discuss issues of mutual interest and conduct inspections or examinations of regulated entities.
According to a NYSID press release, the NYSID and the BMA signed the MoU in response to the bailout of American International Group, Inc. and the subprime mortgage crisis. The NYSID recently entered into similar agreements with insurance regulators of Germany and Taiwan and is finalizing similar agreements with other insurance regulatory agencies.