Regulation/Legislation

Regulators around the globe are toughening up insurance requirements for companies doing business outside their domiciled countries, and the companies worldwide are demonstrating a greater willingness to focus on regulatory compliance.

American International Group's embattled chairman and chief executive officer, Edward M. Liddy, will step down as soon as replacements can be found, with the two leadership positions to be filled by separate individuals, the company announced last week.

Last Thursday, Reps. Dennis Moore, D-Kan., and Scott Garrett, R-NJ, introduced legislation in the U.S. House of Representatives modernizing and reforming regulation of the surplus lines (nonadmitted) market.

A Florida legislator yesterday reintroduced the Homeowners' Defense Act, legislation which would allow states to join a national catastrophe insurance pool.

At the urging of the two main insurance agents' groups, legislation was introduced in the House yesterday to create a system to provide insurance agents with a nationally valid license.

A measure to modernize and reform regulation of the nonadmitted market, otherwise known as surplus lines, was reintroduced yesterday in the House.