Calif. Senate OKs Bill Gauging Financial Threats To Insurers

Law360, New York (May 30, 2012, 8:05 PM EDT) -- The California Senate on Tuesday approved a bill that would hand the state's insurance commissioner new powers to evaluate financial risks posed to insurance companies by their noninsurance affiliates.

S.B. 1448 calls for the company with ultimate control over a California insurer to file annual enterprise risk reports, which would outline circumstances involving affiliates that — unless quickly corrected — might significantly harm an insurer's financial condition or liquidity.

"It requires companies to provide a more holistic view of potential threats to insurance companies," said Alex...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.