Our lawyers have extensive knowledge and experience in nearly all aspects of insurance regulation, as well as the impact of statutory accounting and rating implications on the insurance industry. The lawyers in our Insurance group offer innovative advice and solutions for insurance industry clients and other entities dealing with the insurance industry, in some cases on a global or 50-state basis. We provide advice on a broad range of insurance regulatory matters, such as issues relating to the production of insurance, market conduct compliance, regulation of insurance intermediaries (such as producers, third party administrators, managing general agents and reinsurance brokers), holding company regulation, credit for reinsurance requirements and other requirements relating to reinsurance, invested asset regulation, overall solvency standards, risk-based and other capital requirements, as well as the regulation of captive insurers.
U.S. Regulatory Practice
Our lawyers have significant experience representing clients in responding to inquiries and formal investigations by state insurance departments. We understand the differing approaches taken by state insurance departments enabling us to offer practical advice in formulating a strategy for responding to investigations. Our sophisticated representations in the most challenging areas for the insurance industry demonstrate our insight and anticipation of the next regulatory matter.
Supplementing this aspect of our practice, we are actively involved at the National Association of Insurance Commissioners (NAIC), where we participate in the “interested parties” advisory groups to key NAIC task forces and working groups. We have also represented the NAIC and the insurance departments of several states on various matters, including the drafting of numerous pieces of insurance legislation.
London Insurance Regulatory Practice
We offer solutions and advice on the full range of regulatory issues which an insurer, insurance broker or reinsurer may face. We are assisted by Sidley’s network of European offices and are well placed to advise insurance clients on a wide variety of EU insurance and regulatory matters. We act for clients with extensive UK, European and international operations, as well as for clients based in the United States and elsewhere looking to establish businesses in the UK and the EU. We provide UK and EU advice in the following areas:
- advising on the regulation of insurance companies, including the application of Financial Services Authority (FSA) rules and guidance and Solvency II;
- advising on the regulation of insurance mediation activities;
- advising on the classification and characterization of insurance contracts, guarantees, credit default swaps and related instruments under the Financial Services and Markets Act 2000 (FSMA);
- advising on applications for the FSA authorization of new insurance businesses, including the approval of proposed controllers and approved persons under the applicable FSA requirements;
- drafting and negotiating insurance related distribution, marketing, joint venture, outsourcing and services agreements on behalf of insurance companies and intermediaries;
- advising on the full range of insurance related agreements and arrangements including policy wordings, reinsurance arrangements, binding authorities and other delegated underwriting agreements and terms of business; and
- advising on the ability of EU authorized insurance and reinsurance businesses to provide insurance under the passporting regime into other European jurisdictions either on a cross-border services basis or by establishing local branches in accordance with European directives.