Legal Developments
COVID-19 Pandemic Slows Pace of Captive Insurance Law Updates
While the COVID-19 pandemic has slowed state legislatures' updates of their captive insurance statutes this spring, some states have moved forward in 2020 and passed captive legislation. In other captive domiciles, state lawmakers did not complete action on captive legislation before adjourning. Read More
Legislation To Create TRIA-Like Federal Pandemic Backstop Introduced
A bill that would create a federal pandemic risk backstop has been introduced in Congress. Rep. Carolyn B. Maloney (D-NY), senior member of the House Financial Services Committee, introduced H.R. 7011, the Pandemic Risk Insurance Act of 2020, on Wednesday. Read More
Future Uncertain for Bill To Allow Risk Retention Group Expansion
Four months after a congressional hearing was held on legislation introduced last year that would allow certain risk retention groups (RRGs) to expand coverages offered to their policyholders, the future of the bill remains uncertain. Under that measure, H.R. 4523, RRGs would be allowed to offer property coverages. Read More
Insurance Groups Offer Alternative Pandemic Backstop Proposal
A group of insurance trade associations has proposed a new federal program that would provide revenue replacement for businesses affected by future pandemics. The taxpayer-backed Business Continuity Protection Program would provide participating businesses with revenue replacement assistance for payroll, employee benefits, and operating expenses following a presidential viral emergency declaration. Read More
Pandemic BI Bills Pose Existential Threat to Insurance Industry: Best
Legislation that would nullify business interruption (BI) exclusions in existing US insurance policies would pose an existential threat to property-casualty insurers, according to a recent commentary from A.M. Best. In the United States, most commercial insurance policies exclude losses caused by communicable diseases or viruses. Read More