Regulation/Legislation

While homeowners-insurance policy exclusions can burden consumers with significant out-of-pocket expenses, expanding policies to fill coverage gaps creates a new set of challenges, such as affordability issues, lower consumer demand as rates rise and regulatory approval for risk-based rates, the GAO says.

The Senate passed legislation on Thursday re-establishing the National Association of Registered Agents and Brokers, but the underlying bill, which delays flood-rate increases, has a tough road ahead in the House.

The Senate vote to delay flood-rate hikes creates unlikely divisions and alliances on both sides of the issue. For example, statements opposing the bill came from insurance groups such as NAMIC and PCI, as well as from the Consumer Federation of America.

Connecticut officials rejected all 94 homeowner applications for federal money related to a Superstorm Sandy grant, deciding instead to use the funds on storm-infrastructure projects for shore towns.

The U.S. House of Representatives passed a nearly $1 trillion farm bill on Wednesday that cuts food stamps and ends a direct subsidy to farmers, while expanding government-backed crop insurance programs.

A federal appeals court upheld the dismissal of a lawsuit by former American International Group Inc Chief Executive Maurice "Hank" Greenberg accusing the Federal Reserve Bank of New York of unlawfully bailing out the insurer at the height of the 2008 financial crisis.