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Since 2005, the FSA has been carrying out a thematic review of the sale of PPI, the principal aim of which is for firms to improve their sales standards. The third phase of the FSA’s thematic review on PPI involved a mystery shopping exercise in respect of face to face sales of PPI alongside unsecured personal loans. 

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Read More UK: Financial Services Authority (FSA) Provides an Update on the Third Phase of its Thematic Review of the Sale of Payment Protection Insurance (PPI)

Neel Kashkari has been named the interim head of the new Office of Financial Stability within the United States Department of Treasury.  The Office of Financial Stability was created under the Emergency Economic Stabilization Act of 2008, previously discussed here. …
Read More Treasury Secretary Paulson Selects Interim Head of Financial Rescue Program

The United States Court of Appeals for the Third Circuit recently upheld a $182.9 million judgment against PricewaterhouseCoopers, LLP (“PWC”) for allegedly contributing to the failure of Ambassador Insurance Company (“Ambassador”) through negligent auditing.

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Read More Third Circuit Upholds Liability of PricewaterhouseCoopers in Ambassador Insolvency

Last Friday, the House of Representatives passed the Senate’s revised version of the $700 billion bailout bill, H.R. 1424, by a vote of 263-171.  This was a significant turnaround from last Monday’s House vote of 205-228, which rejected the first version of the bailout bill.  H.R. 1424 was signed into law by President Bush the same day. …
Read More UPDATE: House Passes Revised Bailout Bill

In Otto v. Physicians Ins. Co. of Wisconsin Inc., 751 N.W.2d 805 (Wisc. 2008), a sharply divided Wisconsin Supreme Court affirmed a default judgment entered against an insurer for damages allegedly caused by its co-defendant insureds’ negligence, even though no finding had been made as to the insureds’ liability for the damages at issue. …
Read More Wisconsin Supreme Court Awards Nearly $1 Million Default Judgment Against Insurer That Failed to Timely Answer

A Pennsylvania federal court recently ruled that a group of defendant insurers in an asbestos coverage case would not be permitted to join a number of additional insurers as defendants in the action as their request for joinder was untimely. 

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Read More Pennsylvania Federal Court Bars As Untimely Insurers’ Attempt to Join Additional Insurers in Asbestos Coverage Case

The Financial Services Authority (FSA) has published a consultation paper discussing revisions to the maximum limits of compensation payable by the Financial Services Compensation Scheme (FSCS). The FSCS covers deposits, life and general insurance, investment business, and home finance mediation. …
Read More UK: FSA Publishes CP 08/15 Reviewing Financial Services Compensation Scheme Maximum Limits

With stock market turbulence and industry consolidation in 2008 have come financial strength ratings downgrades for more than 100 insurers and reinsurers.  While such downgrades can result in numerous consequences, one potentially unrecognized consequence is non-compliance with regulatory reporting guidelines in numerous jurisdictions in Latin America and other parts of the world. …
Read More Ratings Downgrades Can Result in Regulatory Non-Compliance in Many Countries

The First Circuit Court of Appeals recently held that the fraud and dishonesty exclusion in an errors and omissions policy issued to a mortgage originator and broker excluded coverage for the fraudulent acts of one of its employees in the loan origination process. …
Read More Mortgage Broker’s E&O Policy Excludes Coverage for Fraudulent Acts of Its Employee in Connection with Subprime Mortgage Loan Application and Documents