INSURANCE BRIEFS

INSURANCE BRIEFS

SPECIAL SESSION CALLED

ON ARIZONA AUTO COVER

PHOENIX - Gov. Fife Symington called a special legislative session for today to extend the state's mandatory auto insurance requirement that otherwise expires at the end of the year.

Legislative leaders said they have the backing of a majority in both chambers for the major provisions of the legislation they will propose.

That includes an 18-month extension.

Democrats want the bill to include rate regulation by the Department of Insurance, one of the major issues that prevented previous passage and one Republicans have said they won't accept. The minority Republicans indicated they will offer amendments to force a vote on the record, however.

In addition to extending the law, the bill to be considered today would do away with the requirement that motorists purchase uninsured motorist coverage.

The bill also would limit additional fees companies could stack on premium costs.

MODEL LAW TARGETS

POLICY RISK-SHIFTING

WASHINGTON - A key committee of the National Association of Insurance Commissioners has approved a proposed model law to regulate licensed insurers that write policies and then transfer all or most of the risk to unlicensed offshore reinsurers.

The practice, which has increased in recent years, has been used by some unlicensed offshore insurers to escape regulatory scrutiny, the commissioners' group said.

The association panel voted at the commissioners' fall meeting in Boston last week to pass the measure regulating such fronting transactions and to put the proposal before the full association for final approval at its next national meeting, scheduled for Dec. 5-8 in Honolulu.

NEW YORK LIFE STARTS

NEW ADVERTISING PUSH

NEW YORK - New York Life Insurance Co. launched a new advertising campaign last week woven around the theme, "That's Life. That's New York Life."

Created by advertising agency Chiat/Day, the 30-second commercials feature falling piggy banks, wrecking balls and roller coasters to contrast life's challenges with New York Life's promise of wise financial stewardship.

The ads point to the decisions the company has made throughout its history. A companion print campaign will appear in a number of publications.