Insurance Regulation in the U.S. and EU
The Committee on Insurance Law sent a letter to the U.S. Department of the Treasury in response to the Request for the EU-U.S. Dialogue Project for Public Comment on the Technical Committee Reports Comparing Certain Aspects of the Insurance Supervisory and Regulatory Regimes in the European Union and the United States. The Committee expressed support for the Project’s intention to promote mutual understanding and enhanced cooperation with respect to EU and U.S. insurance regulation and to identify the commonalities and differences between the two regimes while offering observations on four specific points including the: 1) impact of U.S. Federalism on Insurance Regulation; 2) limits of group supervision by states; 3) capital standards imposed on systemically significant insurers; and 4) roles of the FIO and NAIC.
Supplemental Uninsured/Underinsured Motorist Coverage
The Committee on Tort Litigation issued a report urging the Governor to sign into law A.10784/S.7787, which would amend the insurance law to provide all motor vehicle policy holders with Supplemental Uninsured/Underinsured Motorist (SUM) insurance coverage, with the choice of expressly declining such additional coverage after being informed of the benefits of extra SUM coverage. Under the new law whatever motor vehicle bodily injury coverage drivers buy to protect themselves if they negligently cause injury to a person will also provide them with the same amount of insurance protection if they are the ones injured by a negligent driver. As a result of this legislation, drivers will be encouraged to select SUM coverage at an appropriate level based on their other insurance decisions, while retaining the right to select lower coverage if they so choose. [The legislation was passed but the bill was vetoed by the Governor, who expressed concern about the effect the legislation would have in increasing premiums for drivers.]