Assurant 2014 Annual Report Download - page 28

ASSURANT, INC. – 2014 Form 10-K14
PART I
ITEM 1 Business
Dodd-Frank Wall Street Reform and Consumer
Protection Act
Regulations under the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the “Dodd-Frank Act”) address
mortgage servicers’ obligations to correct errors asserted
by mortgage loan borrowers; to provide certain information
requested by such borrowers; and to provide protections to
such borrowers; in connection with lender-placed insurance;
and these requirements affect our operations because, in
many instances, we administer such operations on behalf of
our mortgage servicer clients. While the CFPB does not have
direct jurisdiction over insurance products, it is possible
that additional regulations promulgated by the CFPB, such
as those mentioned, may extend its authority more broadly
to cover these products and thereby affect the Company
or our clients.
International Regulation
We are subject to regulation and supervision of our
international operations in various jurisdictions. These
regulations, which vary depending on the jurisdiction, include
anti-corruption laws; solvency and market conduct regulations;
various privacy, insurance, tax, tariff and trade laws and
regulations; and corporate, employment, intellectual property
and investment laws and regulations.
In addition to the U.S., the Company operates in Canada,
the U.K., Ireland, France, Argentina, Brazil, Puerto Rico,
Chile, Germany, Spain, Italy, Mexico and China and our
businesses are supervised by local regulatory authorities of
these jurisdictions. We also have business activities in Peru,
Ecuador, Colombia and South Korea where we have gained
access to these markets by registering certain entities, where
required, to act as reinsurers.
Our operations in the U.K., for example, are subject to
regulation by the Financial Conduct Authority and Prudential
Regulation Authority. Authorized insurers are generally
permitted to operate throughout the rest of the European
Union, subject to satisfying certain requirements of these
regulatory bodies and meeting additional local regulatory
requirements.
We are also subject to certain U.S. and foreign laws applicable
to businesses generally, including anti-corruption laws.
The Foreign Corrupt Practices Act of 1977 (the “FCPA”)
regulates U.S. companies in their dealings with foreign offi cials,
prohibiting bribes and similar practices. In addition, the U.K.
Anti-Bribery Act has wide applicable to certain activities
that affect companies or commercial activities in the U.K.
Additionally, the International Association of Insurance
Supervisors (the “IAIS”) is developing a model common
framework (“ComFrame”) for the supervision of Internationally
Active Insurance Groups (“IAIGs”), which includes additional
group-wide supervisory oversight across national boundaries
and the establishment of ongoing supervisory colleges. The
IAIS has announced that it expects by 2016 to develop a
risk-based global insurance capital standard applicable to
IAIGs, with full implementation beginning in 2019. As of
December 31, 2014, Assurant meets the numerical criteria to
qualify as an IAIG, but the decision whether to treat Assurant
as an IAIG is left to the discretion of its domestic and foreign
insurance regulators. Should such regulators decide to treat
Assurant as an IAIG, Assurant will be subject to the additional
requirements of ComFrame. At this time, we cannot predict
whether our insurance regulators will treat us as an IAIG,
and what additional capital requirements, compliance costs
or other burdens these requirements would impose on us, if
we were subject to them.
Securities and Corporate Governance
Regulation
As a company with publicly-traded securities, Assurant
is subject to certain legal and regulatory requirements
applicable generally to public companies, including the
rules and regulations of the U.S. Securities and Exchange
Commission (the “SEC”) and the New York Stock Exchange
(the “NYSE”) relating to public reporting and disclosure,
accounting and fi nancial reporting, and corporate governance
matters. Additionally, Assurant, Inc. is subject to the corporate
governance laws of Delaware, its state of incorporation.
Environmental Regulation
Because we own and operate real property, we are subject
to federal, state and local environmental laws. Potential
environmental liabilities and costs in connection with any
required remediation of such properties is an inherent risk
in property ownership and operation. Under the laws of
several states, contamination of a property may give rise
to a lien on the property to secure recovery of the costs of
the cleanup, which could have priority over the lien of an
existing mortgage against the property and thereby impair
our ability to foreclose on that property should the related
loan be in default. In addition, under certain circumstances,
we may be liable for the costs of addressing releases or
threatened releases of hazardous substances at properties
securing mortgage loans held by us.