• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Reinsurance Focus

New reinsurance-related and arbitration developments from Carlton Fields

  • About
    • Events
  • Articles
    • Treaty Tips
    • Special Focus
    • Market
  • Contact
  • Exclusive Content
    • Blog Staff Picks
    • Cat Risks
    • Regulatory Modernization
    • Webinars
  • Subscribe
You are here: Home / Archives for Reinsurance Transactions / Accounting for Reinsurance

Accounting for Reinsurance

CLASS SETTLEMENT AND ATTORNEYS’ FEES APPROVED IN ACTION INVOLVING CAPTIVE REINSURANCE

January 31, 2013 by Carlton Fields

After more than four years of litigation, a class action suit brought against Washington Mutual comes to a close with an unopposed class settlement in the amount of $4 million, which includes $1.2 million for attorneys’ fees and litigation costs. The class action involved allegations that defendants received kickbacks from private mortgage insurers to whom they referred borrowers that exceeded the value of reinsurance services provided by defendants to those insurers. The Eastern District of Pennsylvania determined that class settlement was fair and reasonable because continued litigation would be complex, expensive, and lengthy since formal discovery would still need to be completed. The court also concluded that plaintiffs ran the risk of losing on summary judgment or at trial because resolving the issue of whether the reinsurance agreements adequately transferred risk to the defendants would depend on a battle of the experts. Finally, the court reasoned that there was a strong likelihood a class would not be certified outside of settlement because the defendants had potentially viable defenses that could not adequately be litigated on a class-wide basis. The court approved the class settlement and the award of attorney’s fees and costs in separate orders. Alexander v. Washington Mutual, Inc., Case No. 07-4426 (E.D. Pa. Dec. 4, 2012).

This post written by Abigail Kortz.

See our disclaimer.

Filed Under: Accounting for Reinsurance, Contract Interpretation, Reinsurance Regulation, Reinsurance Transactions

VIRGINIA BUREAU OF INSURANCE ISSUES GUIDELINES ON CREDIT FOR REINSURANCE

January 22, 2013 by Carlton Fields

Virginia’s Bureau of Insurance issued guidelines for implementation of the Commonwealth’s credit for reinsurance law. The Bureau’s December 13, 2012 Administrative Letter 2012-11 (the “Letter”) lists the basic criteria the Bureau will rely on in making determinations as to whether a domestic ceding insurer can take credit for reinsurance, based on the reinsurer qualifying as: (1) a licensed Virginia insurer in good standing, (2) an accredited Virginia reinsurer with at least $20 million surplus, (3) a reinsurer licensed in a state with similar credit laws and at least $20 million surplus, (4) a single assuming insurer with a trust account and at least $20 million surplus, (5) a participant in an association of unincorporated underwriters and at least $100 million surplus, (6) a participant in an association of incorporated underwriters with aggregate surplus of $10 billion and a joint trusteed surplus of at least $100 million; or (7) a reinsurer certified in Virginia with a surplus of $250 million, domiciled and licensed in a qualified jurisdiction, and with acceptable ratings from two or more ratings agencies.

The Letter also delineates ceding insurer responsibilities in ensuring the validity of credit reported on their statements, and provides information pertaining to filing requirements and forms.

This post written by John Pitblado.

See our disclaimer.

Filed Under: Accounting for Reinsurance, Reinsurance Regulation, Week's Best Posts

CONNECTICUT INSURANCE DEPARTMENT AMENDS CREDIT FOR REINSURANCE REPORTING REQUIREMENTS

January 17, 2013 by Carlton Fields

Effective October 1, 2012, the Connecticut Insurance Department has amended its Credit for Reinsurance law to align with the November 2011 amendments to the NAIC Credit for Reinsurance Model Law. The amendments to Connecticut’s law adopt the NAIC Model Law’s reporting requirements, which require a domestic ceding insurer to notify the Insurance Commissioner when reinsurance recoverables and amounts ceded to a single assuming insurer exceed certain thresholds. State of Conn. Ins. Dep’t, Credit for Reinsurance Reporting Requirements, Bulletin No. FS-24 (Dec. 3, 2012).

This post written by Abigail Kortz.

See our disclaimer.

Filed Under: Accounting for Reinsurance, Reinsurance Regulation

NAIC REINSURANCE TASK FORCE DECEMBER 2012 MEETING

December 26, 2012 by Carlton Fields

On December 1, 2012, the NAIC’s Reinsurance (E) Task Force convened at the 2012 NAIC Fall Meeting to discuss the status of several regulatory issues. The NAIC staff reported that 11 states have adopted some form of the NAIC Model Credit for Reinsurance Law and Regulation, which allows for reduced collateral requirements for certified reinsurers. The Model Law and Regulation were approved at the Fall Meeting as optional standards, meaning states may continue to require 100% collateral. The Task Force also exposed its Draft NAIC Process for Developing and Maintaining the List of Qualified Jurisdictions for a 45-day comment period and noted that 4 jurisdictions, Bermuda, Germany, Switzerland and the UK, will receive expedited review. Another discussion focused on a survey of states regarding the Dodd-Frank’s Nonadmitted and Reinsurance Reform Act, which brought to light concerns about how to treat reinsurers that have large segments of insurance business for purposes of solvency regulation.

This post written by Abigail Kortz.

See our disclaimer.

Filed Under: Accounting for Reinsurance, Reinsurance Regulation, Reserves, Week's Best Posts

COMMENT PERIOD OPEN FOR PROPOSED AMENDMENTS TO NEW YORK’S CREDIT FOR REINSURANCE REGULATIONS

December 20, 2012 by Carlton Fields

On November 28, 2012, the New York Department of Financial Services published a notice of proposed rulemaking (with no hearing scheduled) regarding the Credit for Reinsurance regulations to more closely align its program with the recently amended NAIC Credit for Reinsurance Model Law and Regulations. The revisions to New York’s regulations are substantially similar to Section 8 of the Model Regulations, but also require reinsurance contracts to include terms regarding venue and choice of law. Section 8 and New York’s proposed amendment set forth the rating schedule used to determine reduced collateral requirements for reinsurers domiciled outside of the U.S. As previously reported by Carlton Fields LLP, the NAIC amended the Model Law and Regulations in November 2011 to add Section 8 and New York promulgated its Credit for Reinsurance regulations in November 2010 when it became only the second state to adopt a ratings-based framework. The comment period for the proposed amendments to New York’s Credit for Reinsurance regulations ends on January 12, 2013. N.Y. Comp. Codes R. & Regs. tit. 11, § 125 (proposed Nov. 28, 2012).

This post written by Abigail Kortz.

See our disclaimer.

Filed Under: Accounting for Reinsurance, Reinsurance Regulation, Reinsurance Transactions, Reserves

  • « Go to Previous Page
  • Page 1
  • Interim pages omitted …
  • Page 7
  • Page 8
  • Page 9
  • Page 10
  • Page 11
  • Interim pages omitted …
  • Page 25
  • Go to Next Page »

Primary Sidebar

Carlton Fields Logo

A blog focused on reinsurance and arbitration law and practice by the attorneys of Carlton Fields.

Focused Topics

Hot Topics

Read the results of Artemis’ latest survey of reinsurance market professionals concerning the state of the market and their intentions for 2019.

Recent Updates

Market (1/27/2019)
Articles (1/2/2019)

See our advanced search tips.

Subscribe

If you would like to receive updates to Reinsurance Focus® by email, visit our Subscription page.
© 2008–2025 Carlton Fields, P.A. · Carlton Fields practices law in California as Carlton Fields, LLP · Disclaimers and Conditions of Use

Reinsurance Focus® is a registered service mark of Carlton Fields. All Rights Reserved.

Please send comments and questions to the Reinsurance Focus Administrators

Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please contact us. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites. This site may be considered attorney advertising in some jurisdictions.