Jurisdictions

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Two recent decisions from federal courts addressed an important issue for many reinsurers: whether a non-party to a reinsurance agreement (such as a cedent’s insured) can proceed directly against the reinsurer for amounts owed to the non-party by the ceding company. …
Read More Client Advisory – Federal Courts Find that Reinsurer is Not Directly Liable to Third Parties

On December 19, 2011, the head of the Connecticut Insurance Department (the “CID”), Commissioner Thomas Leonardi, announced the signing of a memorandum of understanding (“MoU”) with the German Federal Financial Supervisory Authority (“BaFin”), the governmental body responsible for financial regulation in Germany. Under the MoU, the CID and BaFin may request assistance from one another, including obtaining information on regulated companies and individuals. …
Read More Connecticut Insurance Department Announces New Cooperation Agreement with Germany

The Connecticut Insurance Department issued a bulletin on December 19, 2011 (the “Bulletin”), explaining the training requirements mandated by Sections 38a-432a-1 to 38a-432a-8 of the Regulations of Connecticut State Agencies (the “Regulation”) for insurance producers who sell annuity products.  The Regulation goes into effect on February 18, 2012, and implements the National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation in Connecticut. …
Read More Connecticut Issues Guidance on Annuity Suitability Training Requirements

On December 12, 2011, the Illinois Department of Insurance issued a revised bulletin (the “Bulletin”) regarding the use of retained asset accounts by life insurance companies.  Retained asset accounts, for purposes of the Bulletin, are mechanisms by which an insurer or entity acting on behalf of an insurer may settle proceeds payable under a policy by depositing such proceeds into an account, and retaining them in accordance with the terms of supplementary contract not involving annuity benefits. …
Read More Illinois Issues Revised Bulletin on Use of Retained Asset Accounts

Last month, the Life Insurance and Annuities (A) Committee of the National Association of Insurance Commissioners (“NAIC”) formed a sub-group charged with reviewing issues surrounding contingent annuities.  The charge comes in response to industry disagreement over the classification of contingent annuities. …
Read More NAIC Examines Contingent Annuities

Currently before the Florida Supreme Court is a case challenging the constitutionality of Section 626.854(6) of the Florida Statutes, which imposes restrictions on the solicitation of business by public adjusters within the 48 hours immediately following an event that may become the subject of a claim under an insurance policy. A decision is expected within weeks. …
Read More Client Advisory – Florida Supreme Court to Decide Constitutionality of Solicitation Restrictions on Public Adjusters

The New York Department of Financial Services (“DFS”) issued a circular letter on December 19, 2011 (the “Circular Letter”) emphasizing the importance of risk management and indicating that the DFS expects every insurer to adopt a formal enterprise risk management (“ERM”) function.  The ERM function should identify and manage risk exposures to the insurer within a group enterprise or at the company level when the insurer is a stand alone enterprise. …
Read More New York Issues Circular Letter Regarding Enterprise Risk Management

SENATE PASSES TEMPORARY “DOC FIX”; HOUSE ACTION AWAITED

On December 17, the U.S. Senate voted 89-10 to pass the “Temporary Payroll Tax Cut Continuation Act of 2011,” which included a two-month delay in implementing the Medicare Physician Fee Schedule for calendar year 2012. As we reported in our Healthcare Update on November 7, the new Fee Schedule calls for an overall 27.4% reduction in payment rates for physicians, nurse practitioners and physical therapists. …
Read More Healthcare Update: Senate Passes Temporary “Doc Fix”; MedPAC Issues Draft Recommendations for 2013; CMS Issues “Essential Health Benefits” Bulletin; Home Care Worker Wage Protection Proposed

In November 2011, the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity held a hearing to discuss proposed legislation to:

  • Prohibit the Federal Insurance Office of the Department of the Treasury and other financial regulators from collecting data directly from insurers. 

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Read More House Financial Services Subcommittee Holds Hearing: “Insurance Oversight and Legislative Proposals”