Allied World Assurance Co. Holdings Ltd. is under investigation by the Texas attorney general, according to a Securities and Exchange Commission document filed by the Bermuda-based insurer. It has suspended its chief underwriting officer indefinitely in response. The inquiry focuses on AWAC's relationship with American International Group Inc. and Chubb and its effect on restraining trade, as well as on broker contingent commissions and bid-rigging. The company was formed in 2001 by AIG, Chubb and other investors.
A bill to create a uniform, federal regulatory and taxation system for surplus lines was introduced in the House of Representatives. The Nonadmitted and Reinsurance Reform Act of 2006 would end multistate regulation, subjecting nonadmitted insurance to oversight in the carrier's home state only. The law is seen as a shift in strategy for supporters of the State Modernization and Regulatory Transparency Act. Instead of creating federal standards on state insurance regulation in one sweeping law, legislators may be taking a piecemeal approach. The bill was introduced by Rep. Ginny Brown-Waite, R-Fla., and Rep. Dennis Moore, D-Kan.
DOE DUMPS PLAN
The Department of Energy has suspended its new pension reimbursement policy for one year. In the policy, announced last April, the DOE would have stopped reimbursing contractors for defined benefit pension plan costs for new employees and set cost benchmarks for defined contribution plans for receiving reimbursements. Critics in the House of Representatives responded with an appropriations bill amendment that prohibited the policy. DOE bowed to pressure and vowed to consult with Congress and other stakeholders during the suspension.
--Compiled by staff from news and wire reports.
August 1, 2006
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