Regulation/Legislation

New York Gov. David A. Paterson said today he will seek legislation making permanent the law setting requirements for the mental health care that must be provided by group or school health insurers.

Current efforts for health care reform could be derailed by proposals calling for a "public plan" coverage option and a federal health board, a conservative think tank representative told a Senate panel today.

A group of insurance industry chief executives expressed major concerns here during a panel discussion that the Obama administration's recovery plan will spawn inflation over the next few years.

Eight industry trade groups supporting an optional federal insurance charter told key members of Congress in a letter last week that financial services reform should include a dedicated national regulator.

American International Group said last week that despite the ongoing investigations by federal authorities, they know of no illegal activity by the company's controversial financial products unit.

The major impact on insurers from an offshore tax avoidance crackdown announced today by the Obama administration appears to be a proposal restricting a deduction of costs for financing foreign operations, according to industry sources.