Senate will get assumption re bill. (reinsurance)

National Underwriter Life & Health-Financial Services Edition, March, 1994 by Brostoff, Steven

Sen Howard Metzenbaum (D-OH) and Sen Richard Bryan (D-NV) are planning to introduce a bill that would limit the use of assumption reinsurance contracts by insurance companies. The bill requires insurers to get the written consent of their policyholders before making an assumption reinsurance transaction. An American Council of Life Insurance spokesperson said that the bill is similar to a model law proposed by the National Assn of Insurance Commissioners, a law that Metzenbaum believes does not go far enough to restrict assumption reinsurance transactions.

WASHINGTON -- Sens. Howard Metzenbaum, D-Ohio, and Richrd Bryan, D-Nev., are preparing to introduce legislation that would place strict limits on the ability of insurance companies to engage in assumption reinsurance...