The National Assn. of Insurance Commissioners said it was working with the new company on an "Expansion Application," which it called a "streamlined, uniform application process."
Though the $2.5 trillion muni bond market has one of the world's lowest default rates at under 1%—about half of this debt was backed with insurance—until late last year, when the bond insurers' troubled sub-prime plays were revealed.
The list of insurers, whose expansion into subprime has imperiled their required top "AAA" rating, includes AMBAC Financial Group and MBIA Inc.
Since late last year, states, cities and towns increasingly have been selling their municipal bonds without insurance.
On Monday, the NAIC said it had met to delve into what it called "regulatory solutions" to shore up bond insurers.
"State insurance regulators are working together so that all states and municipalities will have continued access to highly rated financial guaranty insurers," said Kansas Insurance Commissioner Sandy Praeger, who also serves as the group's president.