By SNR Denton
On July 21, 2010, after several weeks of deliberations in the Senate and the House of Representatives, President Obama signed HR 4173, the Dodd-Frank Wall Street Reform and Consumer Protection Act. Of most importance to surplus line insurers and reinsurers, HR 4173 does not alter the current state-based insurance regulatory scheme. However, it: (1) creates the Federal Insurance Office within the Treasury Department; (2) streamlines regulation of surplus lines insurance and reinsurance; and (3) directs the preparation of studies on three topics: (a) the current state regulatory system; (b) the viability and utility of federal regulatory intervention as an alternative or adjunct to the current state-based system; and (c) the state of the surplus lines marketplace. Other insurance-related provisions or exclusions relate to the Consumer Financial Protection Bureau, Financial Stability Oversight Council, Orderly Liquidation Authority, Rule 151A elimination and Corporate Governance and Executive Compensation requirements for publicly traded insurance companies. Most of the insurance provisions are located in Title V on pages 209-225 of the Financial Regulatory Reform Conference Report. The provisions relating to surplus lines are found on pages 218-224, and the provisions relating to reinsurance are found on pages 224-225.
Key Components of the Financial Regulatory Reform Law Affecting Surplus Lines Insurance
The key components of HR 4173 relating to surplus lines insurance include:
Key Components of the Financial Regulatory Reform Law Affecting Reinsurance
The key components of HR 4173 relating to reinsurance include:
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