In a letter to the Federal Insurance Office (FIO), the Committee on Insurance Law offered comments on the FIO’s Report to Congress on the U.S. and Global Reinsurance Market. The letter sets forth the Committee’s observations concerning: 1) the overarching purposes of reinsurance; 2) the role of reinsurance in the broader economy; and 3) recent and ongoing reforms in the regulation of reinsurance, and urges continued efforts to reduce regulatory ambiguity and uncertainty and to regulate reinsurance from the standpoint of widely shared public policy priorities.
Excess Line Legislation
The Committee on Insurance Law issued a report on A.9783/S.6808, which would amend the New York Insurance Law by adding a new Article 58 authorizing domestic excess line insurance companies. The Excess Line Legislation was approved by the Senate on June 12, 2012, and is currently pending in the Assembly. The report expresses support for the Excess Line Legislation subject to the following amendments being made: 1) the new law should specify that except as set forth in new Article 58, domestic Excess Line insurers will be subject to all provisions of the New York Insurance Law; 2) the role of existing and future excess line brokers under the Excess Line Legislation needs to be clarified; and 3) the legislation should specify that New York intends for domestic express line carries to be eligible excess line nonadmitted carriers in other states.