Regulation/Legislation

As many as half the nation's insurance commissioners could be new following Tuesday's elections, as one incumbent commissioner lost her bid to be re-elected while Republicans won the governor's office in 10 states.

Connecticut Insurance Commissioner Thomas Sullivan resigned under pressure Monday from state and federal regulators and consumer groups.

Ambac Financial Group Inc. said it intends to file for Chapter 11 bankruptcy before the end of the year if it cannot reach an agreement with debt holders.

American International Group Inc. said the sale of one foreign insurer and the initial public offering of a second have raised enough money to repay a line of credit it has with the Federal Reserve Bank of New York.

Based on current market prices, the U.S. government expects to earn a profit from its loans and investments in American International Group (AIG).

A regulatory lawyer raised concerns about a new proposed FDIC rule dealing with resolving troubled insurers that the federal agency believes constitute potential systemic risk to the financial system.