The terrorism insurance law’s expiration boosts uncertainty

terrorism insurance news program law

The federal program could end at the close of 2014, causing costs in commercial real estate to spike. The federal terrorism insurance is on the cusp of expiring and many in the industry are now cautioning that if it is allowed to be eliminated or scaled back, this could cause costs in commercial real estate to take off in an unprecedented way. The federal Terrorism Risk Insurance Program Reauthorization Act (TRIPRA) expiration could lead to liquidity risks. Reports are showing that terrorism insurance continues to play an important role, which…

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Legislation targeting the insurance industry passes in Florida

Florida insurance industry

New legislation stands to benefit consumers throughout the state of Florida New legislation has been passed in Florida that aims that is meant to modernize insurer solvency throughout the state. The legislation is expected to benefit Florida consumers as it will provide them with new protections and make changes to state regulations that have become considered archaic. Senate Bill 1308, as it is called, is heavily based on the national standards that have recently been introduced by the National Association of Insurance Commissioners. Legislation is based on national standards from…

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Insurance law to cause RBC to incur a $160 million hit

RBC insurance law canada

In Canada, the federal government’s efforts to close tax “loopholes” is bringing on a massive hit for one insurer. According to the Royal Bank of Canada (RBC), the latest insurance law change from Finance Minister Jim Flaherty that is designed to close the tax “loopholes” in this industry will bring with it a charge of an estimated $160 million for the insurer when it makes its fourth quarter earnings report. The insurer said that after tax, the charge will fall to $118 million, but is a direct result of the…

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Insurance industry could soon see greater federal flexibility

US life insurance policy payout ruling

Senators have now proposed a bill that could give the Federal Reserve more wiggle room. A bipartisan group made up of U.S. senators has now proposed a new bill that would provide the Federal Reserve a larger amount of flexibility for the regulation of companies that are systemically important to the insurance industry, such as American International Group Inc. (AIG). This new bill is meant to put new “capital standards” into place that are customized to the “unique characteristics”. This, according to the bill, which had senators sponsoring it who…

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California workers compensation insurance overhauled

California Insurance Commissioner rejects workers compensation rate hike for the third time

Governor signs workers compensation insurance legislation into law California Governor Jerry Brown has signed into law a legislation that will increase the disability insurance benefits workers receive if they are injured on the job. The legislation aims to provide workers with benefits more fitting to the rising costs of worker’s compensation insurance premiums. These premiums have been growing in California, largely due to the growing costs of medical care associated with workplace injuries and the prevalence of fraud. The legislation was approved by the state Legislature last month, but was…

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Unemployment insurance costs in Idaho continue to grow

Unemployment Insurance

Employers face high unemployment insurance costs due to fraud Employers in Idaho are confronting higher unemployment insurance costs, which may be due to fraudulent benefits, according to the state’s Department of Labor. The agency is now looking to reclaim more than $20 million in misappropriated benefits that have been acquired through fraud. The prevalence of fraud has caused the state’s unemployment insurance costs to skyrocket, putting pressure on employers, some of whom may not be able to afford further boosts in prices. Idaho unemployment fund still under pressure Idaho’s unemployment…

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Legislation seeks to put an end to clawback insurance

aetna faces insurance fine

New bill could prevent insurers from providing protection against clawbacks Financial firms may no longer be able to purchase insurance policies that provide them with protections against civil penalties or compensation clawbacks  if a new legislation introduced by Representative Barney Frank is successful. Clawbacks have become a somewhat popular form of censure for executives looking to reclaim compensation from one another. This practice can sometimes be damaging to an individual’s finances, a possibility that has spawned its own form of insurance coverage. Representative Barney Frank believes that clawbacks are an…

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