Senate Democrats appear to be coalescing around a compromise to a so-called "public plan" for health care protection reform legislation that has met divided insurance industry opinion.

Reinsurance and surplus lines purchases would be governed by the tax policies, licensing and other requirements of the buyer's home state under legislation approved for House floor action.

Financial firms could be forced to bail out Florida's troubled property insurer of last resort under an amendment proposed for House financial services reform legislation, according to one analysis,

Major insurance trade groups are asking the Senate Banking Committee not to require large financial institutions to prefund a systemic risk resolution fund as part of financial services reform legislation.

Federal Reserve officials woefully underestimated the potential cost of bailing out American International Group, according to a report issued by the Office of the Special Inspector General for the Troubled Asset Relief Program.

Legislation giving the federal government broad authority to deal with troubled financial institutions--including insurers--passed the House Financial Services Committee last week on a tight 31-27 vote.

Thanks to changes supported by carriers and agents, most industry groups are now satisfied with legislation creating a Federal Insurance Office within the Treasury Department that was passed last week.

The National Association of Mutual Insurance Companies is voicing strong criticism of a model audit rule for insurance companies proposed by New Mexico Insurance Department officials.