Lawsky Blasts Report On 'Shadow Insurance' Transactions

Law360, New York (March 25, 2014, 4:51 PM EDT) -- New York's insurance regulator on Friday railed against a recent report commissioned by the National Association of Insurance Commissioners, calling it a “Trojan horse” that would advance a risky new system for calculating reserves that life insurers must set aside to pay claims.

New York Department of Financial Services Superintendent Benjamin Lawsky provided scathing feedback to the NAIC on the report, which provides a framework for state insurance regulators to uniformly treat under-the-radar captive reinsurance transactions, which Lawsky calls “shadow insurance transactions.”

Lawsky primarily criticized the...
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