NAIC Rebuffs NY's Call To Halt 'Shadow' Captive Deals

Law360, New York (June 13, 2013, 4:53 PM EDT) -- Leaders at the National Association of Insurance Commissioners on Thursday responded coolly to New York's proposal for a nationwide moratorium on under-the-radar transactions that life insurers use to get around steep requirements for setting reserves, saying they saw little need for the step.

Jim Donelon, the president of the NAIC and Louisiana's insurance commissioner, said that immediately halting the transactions wouldn't be justified, especially since they didn't appear to jeopardize insurers' solvency.

The NAIC will stick to the course it set out on 15 months ago...
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