House-Senate Panel Approves Financial Reform Legislation

After a marathon session that ended at 5:39 a.m. on June 25, 2010, House and Senate conferees agreed on sweeping legislation that will change the way banks and other financial companies are regulated. The final text of the legislation is not yet available, but here are the highlights that relate to insurance company insolvencies:

- Large, interconnected financial companies that are systemically significant will be subject to oversight by the Federal Reserve Board. This could include insurance companies and insurance holding companies, although most observers contend that few (if any) insurers are systemically significant.

- The FDIC will resolve systemically significant financial companies other than insurance companies.

- All insurance companies (including any that are systemically significant) will remain subject to state insurance insolvency laws.

- The guaranty system's existing role in protecting policyholders will remain intact.

- A newly created Federal Insurance Office will study the possibility of subjecting insolvent insurance companies to a federal resolution authority, including its impact on the guaranty system.

The legislation remains subject to approval by the full House and Senate and will be covered extensively at the upcoming NOLHGA Legal Seminar.

Health-Care Reform at the Legal Seminar

In addition to NAIC President-Elect Commissioner Susan Voss from Iowa, the health-care reform discussion at NOLHGA's 2010 Legal Seminar will include Daniel F. Evans Jr., President and CEO of Clarian Health Partners, and Betsy M. Pelovitz, Vice President for State Policy at America's Health Insurance Plans (AHIP). The panel, led by moderator Charles D. Gullickson of the South Dakota Life & Health Insurance Guaranty Association, will address topics such as the role the guaranty associations might play in the debate over health-care reform and the possible implications of health-care reform legislation for the solvency of health insurers.

There is still time to register for NOLHGA's 18th Annual Legal Seminar. Although the hotel room block has closed, please contact NOLHGA to determine if any additional rooms have become available.

NOLHGA's 2010 Legal Seminar will be held on July 15-16 at New York's Marriott Marquis in Times Square (an MPC meeting will be held on July 13 and 14). In addition to health-care reform, the program includes cutting-edge topics such as financial regulatory reform, risk management for board members, and prepackaged bankruptcies. CLE credit will be available in all states requiring CLE. Registration is currently available at NOLHGA's meeting Web page.