What’s New: In brief (June 13, 2005)

OneBeacon Insurance Group, a unit within the White Mountains Insurance Group Ltd., has been subpoenaed by Connecticut officials investigating the industry for collusion with insurance brokers. OneBeacon received a subpoena from Attorney General Richard Blumenthal seeking information on conduct with brokers. The Company is cooperating with the request.

Former Montana Gov. Marc Racicot is the new president of the American Insurance Assn. (AIA). Racicot, who was chairman of the 2004 Bush-Cheney re-election campaign, was most recently a partner in the law firm Bracewell & Giuliani L.L.P.

Recently, at the National Association of Insurance Commissioners (NAIC), subgroups proposed to enhance disclosure rules for insurers using finite reinsurance. As a result, state insurance regulators investigating finite reinsurance are working to ensure that annual statement reporting guidelines for property & casualty insurers. These new proposed rules require an insurer to report any finite reinsurance agreement that might alter policyholders’ surplus by more than 3% or represent more than 3% of ceded premium or losses. The draft proposal also includes reporting requirements regarding contract terms and management’s intent in entering into the contract. The statement, is set to be put into effect this year.