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Presenters urge Arkansas to consider insurance-business-transfer law as a tool for policyholder protection and economic development
Summary
Industry and regulators briefed the Insurance & Commerce Committee on insurance business transfers (IBTs), describing statutory examples abroad and in the U.S., safeguards used in Oklahoma’s law and an Instar case that sent notices to roughly 60,000 policyholders.
Presenters from the insurance industry and state insurance staff told the Senate Insurance & Commerce Committee that statutory insurance-business-transfer (IBT) procedures can provide finality for blocks of policies while maintaining protections for policyholders.
Robert Redpath, U.S. legal director for nSTAR US, said specialized buyers often manage ‘‘runoff’’ portfolios—old liabilities that the original carrier no longer markets—more effectively than companies that no longer write the line. He told the committee the transfers can improve service ‘‘because we are focused on these lines, whereas… the old companies… are not just not interested in them.’’
Russ Galbrai…
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