New World of Run-off (Click to read Full PDF)
Effective August 18, 2015, companies with U.S. commercial runoff business will have a new tool to energize the management of their runoff business. The Rhode Island Amendments to Insurance Regulation 68 provide for “Insurance Business Transfers” (IBT). The IBT is a carefully monitored, transparent process for the transfer of some or all of a company’s commercial runoff liabilities to a newly formed or re-domesticated Rhode Island company through a department approved and court sanctioned novation process. The IBT represents a means to bring finality to runoff while protecting policyholders and ensuring the integrity of the regulatory process. The Amendments to Insurance Regulation 68 fill a huge void in the current regulatory environment for runoff business and provide a reasonable framework for the transfer of commercial runoff business while also providing sufficient safeguards for policyholder protection resulting in a fair outcome for all parties involved.
Click here to read more about what insurers and reinsurers need to know about these new regulations.
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