RIMS Supports Senate's Non-Admitted and Reinsurance Reform Act
NEW YORK (June 25, 2009) â The Risk and Insurance Management Society (RIMS) supports the efforts of Sen. Mel Martinez, R-Fla., with original co-sponsors Sen. Evan Bayh, D-Ind., Sen. Bill Nelson, D-Fla., and Sen. Mike Crapo, R-Idaho, on reintroducing the Non-Admitted and Reinsurance Reform Act of 2009 to the U.S. Senate.
"RIMS believes that the Non-Admitted and Reinsurance Reform Act of 2009 would make insurance more available and affordable by reducing insurers' regulatory costs that are passed on to consumers," says Deborah M. Luthi, ARM, CCSA, member of RIMS board of directors and director of enterprise risk management services at Matheson. "The Society is pleased that the Senate version now incorporates the RIMS-approved definition of a 'qualified risk manager'. RIMS urges the Senate to pass this legislation as soon as possible."
The Non-Admitted and Reinsurance Reform Act of 2009 would:
- Allow brokers representing large policy holders to go directly to the non-admitted market to purchase insurance;
- Require all surplus lines carriers to meet certain financial, capital and other criteria in order to be eligible to provide surplus lines insurance in states; and,
- Preempt state insurance regulators from intervening in reinsurance agreements of ceding insurers domiciled in other states.
According to the legislation, in order for commercial insurance purchasers to gain expedited access to the non-admitted market, an insured must employ a "qualified risk manager" to work with a broker. Previously, RIMS lobbied members of the House Financial Services Committee to modify the original legislation to provide a broader definition of a "qualified risk manager". For more information on RIMS legislative activities, visit www.RIMS.org/LegislativeAction.
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As the preeminent organization dedicated to educating, engaging and advocating for the global risk community, RIMS, the risk management society™, is a not-for-profit organization representing more than 3,500 corporate, industrial, service, nonprofit, charitable and government entities throughout the world. RIMS has a membership of approximately 11,000 risk practitioners who are located in more than 60 countries. For more information about the Society’s world-leading risk management content, networking, professional development and certification opportunities, visit www.RIMS.org.
For more information, contact:
Josh Salter, RIMS communications manager, (212) 655-6059 or jsalter@RIMS.org