SEC Chairman Announces New Help to Facilitate Payments to Victims of Hurricanes Katrina and Rita
The SEC, under Chairman Christopher Cox, provided temporary regulatory relief to insurers affected by Hurricanes Katrina and Rita by expediting capital access through relaxed filing rules, with no fraud, charges, or wrongdoing involved, ensuring timely insurance payouts to victims through December 1, 2005.
The SEC announced administrative relief to help insurers and reinsurers raise capital quickly after Hurricanes Katrina and Rita, allowing extended use of Form S-3 shelf registrations and Rule 462(b) to register up to 20% of the original registered amount, regardless of remaining capacity. Filings were prioritized for processing within five business days, and relief measures were in effect through December 1, 2005. No fraud, penalties, or legal charges were involved—this was purely a procedural effort to ensure liquidity for claim payments.
The Securities and Exchange Commission, under Chairman Christopher Cox, issued regulatory relief on October 4, 2005, to assist insurers and reinsurers affected by Hurricanes Katrina and Rita in accessing capital markets more efficiently. To facilitate rapid funding for insurance claims, the SEC permitted extended use of Form S-3 shelf registrations and Rule 462(b), allowing companies to register up to 20% of their original registered amount—even if that amount exceeded remaining capacity on the shelf. The Division of Corporation Finance committed to processing all related Securities Act filings within five business days to eliminate unnecessary delays. These administrative measures were explicitly designed to ensure liquidity and prompt payment of hurricane-related claims to victims, not to address any misconduct. The relief was scheduled to remain in effect through December 1, 2005, and the SEC established dedicated phone and email hotlines to assist filers with questions. No individuals or entities were accused of fraud, and no fines, penalties, or enforcement actions were taken. The Commission emphasized that its disclosure rules remained intact and that this action was purely supportive, with potential for similar relief to be extended to other filers if needed.
Extracted insights
- person administrative relief
- agency sec chairman christopher cox
- agency Securities and Exchange Commission
- SEC Chairman Christopher Cox announced new regulatory relief to help insurers pay Hurricane Katrina and Rita victims
- SEC took actions enable insurers to use Form S-3 short-form registration statements
- Division of Corporation Finance permitted extended use of Rule 462(b) notice registration for up to 20% of original shelf registration amount
- Division of Corporation Finance will process Securities Act filings by insurance and reinsurance companies within five business days
- SEC established telephone and e-mail hotlines for immediate responses to questions
- Administrative relief continues through December 1, 2005
- SEC issued Press Release 2005-142 on October 4, 2005
SEC CHAIRMAN ANNOUNCES NEW HELP TO FACILITATE PAYMENTS TO VICTIMS OF HURRICANES KATRINA AND RITA FOR IMMEDIATE RELEASE 2005-142 Washington, D.C., Oct. 4, 2005 - Securities and Exchange Commission Chairman Christopher Cox today announced new regulatory relief designed to help ensure that insurers have the capital and liquidity to pay Hurricane Katrina and Rita victims. With insurance rating agencies issuing ratings warnings based on concerns that losses from Katrina and Rita may cause capital shortfalls and liquidity concerns, it is vital for the Commission to take steps to eliminate delays in the process of insurers and reinsurers tapping the capital markets. "The SEC remains committed to doing everything possible for the victims of Hurricane Katrina and Hurricane Rita," said Chairman Cox. "Our disclosure rules remain in force, but we will work to ensure that our regulatory processes do not interfere with market access. The SEC will do what it can to see to it that every victim's insurance has the capital to back it up, and that there are no unnecessary delays in paying claims due to a lack of liquidity." The Division of Corporation Finance has taken the following actions to enable insurers for victims of Katrina and Rita to take advantage of short-form registration statements on Form S-3, and to speed the processing of new registration statements. For insurance and reinsurance companies with existing shelf registrations pursuant to Rule 415(a)(1)(x), the staff will permit the extended use of the Commission's brief "notice" registration of additional securities under Rule 462(b). Under this extension, the staff will permit use of those procedures - including notice by fax and immediate effectiveness - to register additional securities in an amount up to 20% of the dollar amount of securities originally registered on that shelf registration statement (rather than the amount remaining on that registration statement). The Division of Corporation Finance will process Securities Act filings by reporting insurance and reinsurance companies within not more than five business days of their receipt. The Division of Corporation Finance has been instructed to continue these administrative steps through Dec. 1, 2005. While today's action is addressed to the specific problem of helping the victims of Katrina and Rita to obtain prompt payment of their hurricane-related insurance claims, the Commission may find it necessary to extend similar kinds of administrative relief to other filers in the days ahead. The Commission has established both telephone and e-mail hotlines to provide immediate responses to questions, and to hear from those that want to advise the Commission of their needs. Telephone calls should be directed to (202) 551-3300. E-mail should be directed to [email protected]. Any questions regarding the administrative relief being extended today should be addressed to Suzanne Hayes, Office of Healthcare and Insurance, at (202) 551-3290. http://www.sec.gov/news/press/2005-142.htm Home | Previous Page Modified: 10/05/2005
SEC CHAIRMAN ANNOUNCES NEW HELP TO FACILITATE PAYMENTS TO VICTIMS OF HURRICANES KATRINA AND RITA FOR IMMEDIATE RELEASE 2005-142 Washington, D.C., Oct. 4, 2005 - Securities and Exchange Commission Chairman Christopher Cox today announced new regulatory relief designed to help ensure that insurers have the capital and liquidity to pay Hurricane Katrina and Rita victims. With insurance rating agencies issuing ratings warnings based on concerns that losses from Katrina and Rita may cause capital shortfalls and liquidity concerns, it is vital for the Commission to take steps to eliminate delays in the process of insurers and reinsurers tapping the capital markets. "The SEC remains committed to doing everything possible for the victims of Hurricane Katrina and Hurricane Rita," said Chairman Cox. "Our disclosure rules remain in force, but we will work to ensure that our regulatory processes do not interfere with market access. The SEC will do what it can to see to it that every victim's insurance has the capital to back it up, and that there are no unnecessary delays in paying claims due to a lack of liquidity." The Division of Corporation Finance has taken the following actions to enable insurers for victims of Katrina and Rita to take advantage of short-form registration statements on Form S-3, and to speed the processing of new registration statements. For insurance and reinsurance companies with existing shelf registrations pursuant to Rule 415(a)(1)(x), the staff will permit the extended use of the Commission's brief "notice" registration of additional securities under Rule 462(b). Under this extension, the staff will permit use of those procedures - including notice by fax and immediate effectiveness - to register additional securities in an amount up to 20% of the dollar amount of securities originally registered on that shelf registration statement (rather than the amount remaining on that registration statement). The Division of Corporation Finance will process Securities Act filings by reporting insurance and reinsurance companies within not more than five business days of their receipt. The Division of Corporation Finance has been instructed to continue these administrative steps through Dec. 1, 2005. While today's action is addressed to the specific problem of helping the victims of Katrina and Rita to obtain prompt payment of their hurricane-related insurance claims, the Commission may find it necessary to extend similar kinds of administrative relief to other filers in the days ahead. The Commission has established both telephone and e-mail hotlines to provide immediate responses to questions, and to hear from those that want to advise the Commission of their needs. Telephone calls should be directed to (202) 551-3300. E-mail should be directed to [email protected]. Any questions regarding the administrative relief being extended today should be addressed to Suzanne Hayes, Office of Healthcare and Insurance, at (202) 551-3290. http://www.sec.gov/news/press/2005-142.htm Home | Previous Page Modified: 10/05/2005