House Committee Gives Green Light to Wildfire Insurance Coverage Study

wildfire insurance study act

Setting Opinions Aside: An Objective Look at Wildfire Insurance In the wake of devastating wildfires across the country, the House Financial Services Committee has taken a significant step towards addressing the growing concern over insurance coverage for damages resulting from such disasters. With a strong bipartisan backing, the committee has forwarded a bill that mandates a comprehensive study on the state of wildfire insurance. Rep. Patrick McHenry, R-N.C. and chair of the committee, emphasized that the conversation about wildfires must transcend the usual debate on climate change, focusing on observable…

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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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