Regulation/Legislation

American International Group said employees have paid back close to $45 million in bonus payments that the taxpayer-supported company has asked to be returned.

Sen. Chris Dodd, Conn., chairman of the Senate Banking Committee, announced that the committee will start work Monday on financial services legislation that would impose federal regulation on large insurers.

Legislation proposed by Sen. Chris Dodd, D-Conn., would give specific authority to federal banking regulators to oversee insurance companies, especially if they pose a potential threat to the financial system.

A provision in financial services reform legislation to be introduced in the Senate this week is running into heavy fire from various industry groups, including state legislators.

Insurance representatives said it is unclear how promptly and in what form the House will act on new Senate legislation to extend the National Flood Insurance Program to Dec. 31.

If current trends continue, cyber insurance coverage just may take its place alongside workers' comp, general liability, fire and auto insurance in the core commercial property and casualty package.