SEC, Spitzer Probe CNA On Non-Traditional Products
NU Online News Service, March 1, 3:57 p.m. EST?CNA Financial disclosed yesterday that it has joined other insurers under the scrutiny of regulators investigating non-traditional finite insurance products.[@@]
The Chicago-headquartered company disclosed in its 10-K filing with the Securities and Exchange Commission that it has received subpoenas from the SEC and New York attorney general for material concerning "finite insurance products purchased and sold by the company."
The ongoing examination of finite insurance products follows previous disclosures that they have been used as a device by some companies to distort financial statements. The inquiry appears to be growing in scope. Yesterday, RenaissanceRe Holdings Ltd. in Pembroke, Bermuda, said it was subpoenaed by the SEC regarding non-traditional insurance products.
Additionally, CNA said it has been subpoenaed by the New York State attorney general concerning attorney-malpractice insurance. The company also noted that previously it has received subpoenas or interrogatories from regulators in California, Connecticut, Delaware, Florida, Hawaii, Illinois, Minnesota, New Jersey, New York, North Carolina, Pennsylvania and West Virginia concerning industrywide investigations into practices including contingent-compensation arrangements, fictitious quotes and tying arrangements.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.