Two Federal Bills Regulating Reinsurance Are Proposed
Two bills purporting to regulate insurance and reinsurance are currently pending in Congress. One, the Nonadmitted and Reinsurance Reform Act of 2009, would streamline the regulation of nonadmitted insurance and reinsurance companies. This bill has been passed in the House of Representatives, and is pending in the Senate. The other, the Reinsurance Regulatory Modernization Act of 2009, was drafted by the National Association of Insurance Commissioners (“NAIC”) and deals exclusively and in more detail with reinsurance, streamlining regulation and creating standardized rating and collateral requirements. Either bill could have a significant effect on the insurance and reinsurance industries, which generally have not been subject to federal regulation.