Regulation/Legislation

Moves by Florida lawmakers to provide a federal backstop to the state's severely underfunded Hurricane Catastrophe Fund are running into strong headwinds on Capitol Hill.

American International Group Inc. and Zurich Financial Services Group announced a $1.9 billion deal last week for the sale of AIG's auto unit--21st Century Insurance Group--to a Zurich subsidiary, Farmers Group Inc.

A National Association of Insurance Commissioners task force voted yesterday to continue using existing model laws as guidelines for a personal lines regulatory framework and rejected a bid for a less restrictive system.

New York Insurance Superintendent Eric Dinallo announced today that he has begun an inquiry into whether Allstate Corporation engaged in illegal participation in unregulated insurance markets.

The January agreement for government units in charge of New Orleans levees to pay something to property owners damaged by the flooding from Hurricanes Katrina and Rita is now mired in a coverage dispute.

Congressman Elijah E. Cummings, D-Md., reiterated a demand that American International Group Chief Executive Edward Liddy resign in the wake of a disclosure yesterday that Mr. Liddy has a substantial interest in Goldman Sachs.