New York State officials announced yesterday that some credit default swaps qualify as insurance, thus they will regulate those financial instruments beginning Jan. 1, 2009.

The announcement came from Gov. David A. Paterson and Insurance Superintendent Eric Dinallo.

New York's action by its Democratic executive branch is a reversal of policy. In 2000, when the insurance department was in the hands of Republicans, it ruled that all credit default swaps were not insurance.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.