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Summary
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 Type
of reinsurance that transfers only
a finite or limited amount of risk
- Risk is reduced through accounting or financial
methods, along with the actual transfer of economic risk
Practices
related to finite risk insurance have recently come under scrutiny and
attack
- Focus has been on accounting treatment by the
parties involved
 Accounting for finite risk insurance is
unclear
New York State Insurance Department is taking
action:
-
Circular Letter #8
3.29.05
- Requires specified CEO certifications
- Requires additional disclosures
- Applies to New York domestic insurers
- Application to non-New York insurers doing
business in New York isn't clear
- Prepared
proposed accounting rules
shared with other state regulators 
- NY State Proposal
(changes to SSAP 62)
NAIC is taking action:
SEC_CODE_REF_0090001192884
- National
Association of Insurance Commissioners
- Dedicated webpage
- Approves disclosure requirements
6.12.05
- Slide presentation
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Investigations
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Prosecutors
and regulators are investigating
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Related Topics
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