Florida's chief insurance regulator said today in an exclusive interview that he hopes to put a final rule in place by April allowing foreign reinsurers to operate without necessarily posting any collateral.

However, “you can anticipate there may be a challenge to the rule,” according to Florida Insurance Commissioner Kevin McCarty, raising the possibility of court action by domestic insurance and reinsurance groups, which have voiced angry opposition to such a change.

In addition to Mr. McCarty in Florida, New York Insurance Superintendent Eric Dinallo had earlier proposed a regulation to reassess and possibly eliminate collateral requirements without waiting for a model for the change to be crafted by the National Association of Insurance Commissioners.

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