American states have risen to the challenge. Faced with a decided advantage that re/insurers have to shed books of business under Part VII of the UK’s Financial Services and Markets Act, and responding to requests by US re/insurers for a similar mechanism, the American states have enacted a variety of legislative approaches to enable such transactions in the US.
The two leading alternatives are insurance business transfers and divisions. Oklahoma took an early lead in approving the first transfer in an intra-group transaction, and Illinois most recently approved the inaugural US division, also in an intra-group transaction.[1] In each instance, the two states developed template materials, procedural protocols, and easily accessed dedicated websites to facilitate further transactions.
