llinois Insurance Director Michael McRaith has been named by Treasury Secretary Timothy Geithner as the first Director of the Federal Insurance Office created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. McRaith’s naming has received generally positive reviews from industry, consumer groups, and state regulators. He will oversee a much-anticipated report to Congress on the modernization of insurance regulation due in January 2012, and will hold a non-voting seat on the Financial Stability Oversight Council. McRaith is expected to assume the post in late May at the earliest.
Kentucky Governor Steve Beshear signed legislation into law last week which makes Kentucky the first state to adopt the surplus lines insurance multistate compliance compact, or SLIMPACT-lite. Ohio Governor John Kasich followed suit by signing similar legislation shortly thereafter. SLIMPACT-lite gives a governing commission the authority to establish formulas for premium tax allocation and collection, national eligibility standards, and consistent payment methods and regulations for multistate surplus lines policies. Ten states must adopt SLIMPACT-lite legislation before the governing commission can be established. A bill for SLIMPACT-lite passed through both of New Mexico’s legislatures now awaits their governor’s signature.