Calif. Signs Operating Agreement with German Insurance Department

California Insurance Commissioner Steve Poizner signed a memorandum of understanding (MOU) with the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin), the regulatory and supervisory body for all insurance business transacted in Germany. This is the first-ever MOU between the California Department of Insurance (CDI) and a foreign country.

The MOU provides a formal basis for reasonable cooperation and coordination between the CDI and the BaFin to exchange information and, where appropriate, investigative assistance regarding companies and persons engaged in the business of insurance.

The MOU does not modify or supersede any laws or regulatory requirements applicable to the CDI or the BaFin. It also contains privacy provisions that protect confidential information of persons and/or companies, yet allows for more efficient performance of each entity’s duties.

“I believe this MOU will provide a blueprint for future agreements between California and other nations,” added Commissioner Poizner. “In a flat world, business is more migratory than ever so governments must work together regardless of boundaries.”

Source: CDI