Finite reinsurance probe launched by Ga. regulator.Some of the biggest names in the reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. are being called on the carpet by Georgia Insurance Commissioner John Oxendine, who has issued more than 100 subpoenas seeking information on their finite reinsurance transactions. Oxendine said while he's aware the National Association of Insurance Commissioners The National Association of Insurance Commissioners (NAIC) is an Internal Revenue Code Section 501(c)(3) non-profit organization which seeks to organize the regulatory and supervisory efforts of the various state insurance commissioners from around the United States. is in the midst Adv. 1. in the midst - the middle or central part or point; "in the midst of the forest"; "could he walk out in the midst of his piece?" midmost of creating changes to the accounting practices and standards for finite reinsurance, Georgia is jumping into the issue now. "We are very concerned about the misuse of numerous finite reinsurance transactions," he said. "We've seen evidence of them involving several different companies that cause concern. We felt that warranted an across-the-board, broad review of the entire industry." Georgia is creating a template for the investigation as the project moves forward. The department is setting up a "command post" for staff members who have been assigned to the project and is working on incorporating items such as chief executive officer attestations to the nature of finite reinsurance contracts. The subpoenas were to be returned May 13. Oxendine said if problems arise, he may penalize a reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. by stalling its reinsurance transactions going through Georgia-licensed cedants. Georgia Impeaches Insurance Commissioner John Oxendine is investigating the finite reinsurance transactions of offshore reinsurers. Of more than 100 companies that have been subpoenaed, the following are among them: * Ace * AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group * Axa * Berkshire Hathaway * Chubb * CNA (Certified NetWare Administrator) See Novell certification. * Hannover * Munich * St. Paul/Travelers * Zurich Source: Georgia Department of Insurance |
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