California updates reinsurance rules after protracted talks with industry; In compromise, companies and state agree to monitor regs.(News)

Byline: JUDY GREENWALD

SACRAMENTO, Calif.-New California reinsurance regulations-the result of extensive negotiations between the state Department of Insurance and the industry-go into effect today, but do not include sweeping changes, say observers.

The complex technical Reinsurance Oversight Regulations, which update the state's 1997 insurance law, cover issues that include credit for ceded reinsurance, contract requirements and oversight of reinsurance transactions, among other issues.

The regulations, initially proposed by the California department in 2005, were vigorously opposed by insurance and reinsurance groups, which said the rules were …