(listed with the NAIC'sInternational Insurer Department)
One of the first opportunities was handed to DFS as a result of the 2010 Dodd-Frank legislation expanding the possibilities for the Free Zone through a new category of permissible placements to large commercial insureds with expert risk management capability--a class of business often lost to foreign or alien insurers
and excess carriers.
Ludwig said in a statement to Whispers last week that "if we end up losing this case, perhaps we will have at least succeeded in raising public awareness about the inability of a policy holder to identify, sue, and execute a judgment against the actual alien insurers
of 'Lloyds of London' surplus lines policies."
"According to associations," GAO says, "in some cases, states are applying different standards for single and multistate risks, a particular issue for alien insurers
branches of alien insurers
domiciled in states other than New York) must "substantially comply" with the requirements and limitations of such sections.
Moreover, the NAIC accreditation program profoundly affects state legislative processes; the staffing and regulatory conduct of insurance departments; the costs and commercial conduct of domestic insurers; access of insurance consumers to alternative insurance facilities and alien insurers
; and ultimately the cost and availability of insurance products.
of Insurance Commissioners' (NAIC) Quarterly Listing of Alien Insurers
Prohibits a state from prohibiting a surplus lines broker from placing nonadmitted insurance with, or procuring nonadmitted insurance from, a nonadmitted insurer domiciled outside the United States and listed on the NAIC International Insurers Department Quarterly Listing of Alien Insurers
At a minimum, they should become familiar with the three main ways that non-admitted (or unlicensed) alien insurers
may insure U.S.
* Not licensed or admitted if it is an eligible surplus lines carrier listed on the quarterly listing of alien insurers
of the NAIC, or any successor thereto;
and alien insurers
. The authors argue that, if the current program continues, there will be severe hits to profitability, and consequent availability problems.
In an environment where insurance contracts are increasingly becoming more interconnected with alien insurers
, he says, regulators must "interact and cooperate more extensively."