Client Alert
| April 15, 2011
California Department of Insurance Issues Reinsurance Bulletin under NRRA, Scales Back Extraterritorial Application of California Law
On April 11, 2011, the California Department of Insurance ("CDI") issued Bulletin No. 2011-2 (the "Bulletin"), "in order to provide legal clarity . . . for the California insurance market . . ." on how the CDI will implement the reinsurance provisions in the Nonadmitted and Reinsurance Reform Act ("NRRA") included within the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"). The Bulletin announces that the CDI intends in the future to seek legislation to conform California law to NRRA, while offering a remarkable roadmap for how the CDI will interpret and enforce existing law in a manner intended to be fully within the spirit of NRRA.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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