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A surplus lines broker seeking to procure or place nonadmitted insurance in a state for an exempt commercial purchaser ("ECP") is not required to satisfy any state requirement to a make a due diligence search to determine whether the full amount or type of insurance sought by the ECP may be obtained from admitted insurers if: (1) the broker ...
In general, most common law countries tend not to employ thin capitalisation rules in relation to raising and maintenance of capital. However, a number of civil law jurisdictions do. However, in almost all jurisdictions there are certain types of regulated entity which require a certain amount, or a certain proportion, of paid-up share capital ...
However, in many cases, state insurance regulators have allowed insurance companies to classify the capital raised via surplus notes as “surplus” (which is the statutory equivalent of equity), because surplus note holders are last in line to make a claim on the company's assets in a default scenario, much like where equity holders reside in ...
A key part of bank regulation is to make sure that firms operating in the industry are prudently managed. The aim is to protect the firms themselves, their customers, the government (which is liable for the cost of deposit insurance in the event of a bank failure) and the economy, by establishing rules to make sure that these institutions hold enough capital to ensure continuation of a safe ...
Capital surplus, also called share premium, is an account which may appear on a corporation's balance sheet, as a component of shareholders' equity, which represents the amount the corporation raises on the issue of shares in excess of their par value (nominal value) of the shares (common stock).
Financial law is the law and regulation of the commercial banking, capital markets, insurance, derivatives and investment management sectors. [1] Understanding financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.
A contingent convertible bond (CoCo), also known as an enhanced capital note (ECN), [1] is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs. [2] The concept of CoCo has been particularly discussed in the context of crisis management in the banking industry. [ 3 ]
The bill was written in response to some claims by Federal reserve Board lawyers that the way the law is current written, they are required to apply rules about bank capital standards to insurance companies. [3] [4] A companion measure H.R. 4510 was introduced in the United States House of Representatives. [3]