NAII To Host OFAC Reg. Conference

NU Online News Service, June 13, 1:30 p.m.EST?The National Association of Independent Insurers andChicago-based law firm Lord, Bissell and Brook will host anindustry-wide information conference, June 20, to discusscompliance concerns with a federal regulation that lists foreignentities with which insurance companies can no longer transactbusiness.

A representative from the U.S. Treasury Department's Office ofForeign Assets Control will address the practical application ofOFAC's regulation to insurers, according to NAII. Therepresentative also will participate in a roundtable discussion toaddress concerns with complying with the regulations.

"I expect this seminar will enable insurance companies to obtainsome answers from the Treasury Department regarding the problemsour industry is facing with OFAC's foreign business transactionsbans," said Kathleen Jensen, NAII insurance services counsel.

President Bush issued an executive order, Sept. 24, 2001, thatmandates that U.S. underwriters, brokers, agents, primary insurers,reinsurers and U.S. citizen employees of foreign firms in theindustry are prohibited from engaging in transactions withindividuals, government entities, officials and companies fromLibya, Iraq, Sudan, Cuba or the Taliban in Afghanistan. The orderalso includes companies organized or controlled in Cuba; Cubancitizens; and other individuals, entities or vessels appearing onOFAC's Specially Designated Nationals and Blocked Persons list.

According to regulations, all property, including insurancecontracts in which there is a direct or indirect interest in theentities, is to be blocked or "frozen."

The conference, which will take place at NAII headquarters inDes Plaines, Ill., will address procedural issues that havesurfaced for insurance companies from OFAC's regulation, includingthe inability of an insurance company to cancel a policy mid-termwith an individual on the OFAC list, per state insuranceregulations, and the uncertainty of individuals insured under areinsurance contract or who purchased a policy over theInternet.

Names and entities continue to be added to the OFAC list, andare available for review from the OFAC Web site athttp://www.treas.gov/ofac.