Meeting Date:
Wednesday, October 5, 2011
CFTC Staff:
Terry Arbit
David Aron
Lee Ann Duffy
Julian Hammar
Stephen Kane
Kenneth McCracken
Organization(s):
National Association of Insurance Commissioners (NAIC)
New York Department of Financial Services (NYDFS)
External Attendees:
Larry Bruning (NAIC)
Ryan Couch (NAIC)
Mark Sagat (NAIC)
Robert Schump (NAIC)
Todd Sells (NAIC)
James Everett (NYDFS)
Paul Zuckerman (NYDFS)
Donna Chambers (SEC)
Leah Drennan (SEC)
Amy Starr (SEC)
Additional Information:
Participants discussed the swap definition, and in particular the NPRM's proposed further definition of swap that would exclude insurance. NAIC provided clarification that foreign insurers that write insurance policies in the U.S., and domestic reinsurers of risks ceded by foreign insurers, are subject to state insurance regulator supervision. Moreover, NAIC noted that federal health care act exchanges and the other exchanges it mentioned in its comment letter are not exchanges in the conventional sense, as there is no trading of insurance policies separate from their insurable interests on these exchanges. NAIC further noted that nonadmitted and excess and surplus lines insurance, while not subject to the same level of regulation as licensed insurance companies, are subject to state insurance regulator supervision. NAIC also provided information on "service contracts," which are essentially consumer product warranties of the sort purchased with major appliances, electronics, and the like, and in some states are regulated as insurance.
