Claims News Service, Jan.25, 10:21 a.m. EST -- New reinsurance regulations proposed by the California Department of Insurance are "unnecessary, burdensome, and anti-market competition," according to comments filed by several insurance trade associations at recent CDI hearings.

According to the California Department of Insurance, the proposed regulations set forth the procedures in accounting for reinsurance on insurers' financial statements, the general requirements applicable to reinsurance agreements, and related sanctions and oversight.

"In light of the new financial responsibilities imposed on insurance carriers as a result of the Terrorism Risk Insurance Extension Act of 2005 and the widespread natural disaster claims that the insurance industry has had to deal with this past year, it is imprudent to impose new regulations that could limit an insurance carrier's reinsurance options," said Christian John Rataj, National Association of Mutual Insurance Companies' state affairs manager for the western United States.