On 2 July 2009, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) released their second set of advice on Solvency II Level 2 implementing measures. The first set of advice was released on 26 March 2009 and the third and final set of advice is expected in November 2009.
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Jurisdictions
China: Tough Times for Smaller Insurers in China
By Troutman Pepper Locke on
Posted in Hong Kong, Regulatory
Insurance companies in China are undergoing a major shake-up as smaller and weaker insurers are struggling to meet the heightened solvency requirements introduced by the China Insurance Regulatory Commission (“CIRC”) in December 2008 in light of the economic crisis. The aims of these requirements are to increase risk management and efficiency in the insurance sector. …
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UK: Financial Services Authority Appoints New Director of Insurance Sector
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Financial Services Authority (FSA) has recently appointed Ken Hogg as Director of Insurance Sector. Mr Hogg, who was due to start his new role at the FSA this week, has a strong actuarial background and has previously been employed as interim Chief Financial Officer at MGM Assurance, Chief Operating Officer at AIG Life before which he spent 20 years working for AEGON. …
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UK: The Financial Services Authority Fines Director of an Insurance Brokers for Failure to Control an Appointed Representative
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Financial Services Authority (FSA) has fined Richard Holmes, a director of insurance broker AIF Limited, £20,020 for control failings in relation to an appointed representative firm (AR). …
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Beazer Homes Enters Deferred Prosecution Agreement Regarding its Subprime Mortgage Origination Practices
By Troutman Pepper Locke on
On July 1, 2009, the Department of Justice announced that it had entered into a deferred prosecution agreement with homebuilder Beazer Homes USA (“Beazer’) in connection with its alleged mortgage and accounting fraud.
Connecticut Appellate Court: Plaintiff May Not Maintain Bad Faith Claim in Connection With a Denial of Coverage Where Coverage is Excluded
Last month, the Connecticut Appellate Court ruled that where coverage is excluded under a policy of insurance, a plaintiff may not pursue a bad faith claim against the insured in connection with the insured’s denial of coverage.
Latin American Update: Brazil, Chile, Mexico, Peru, Venezuela
By Troutman Pepper Locke on
Brazilian insurance and reinsurance regulator SUSEP recently issued guidance stating that it does not consider valid reinsurance issued to group health organizations, medical cooperatives and autogestion organizations.
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New Jersey Increases Surplus Lines Premium Tax Rates
The New Jersey Department of Banking and Insurance recently issued Bulletin 09-21, which advises that amendments to N.J.S.A. § 17:22-6.59 and 17:22-6.64 were enacted on June 29, 2009. The amendments change the surplus lines premium tax rate from three percent to five percent.
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Katrina: Mississippi Supreme Court Hears First Katrina Wind v. Water Insurance Dispute
By Troutman Pepper Locke on
On June 9, 2009, oral arguments took place in Corban v. USAA Insurance Company, the first Katrina wind v. water insurance dispute heard by the Mississippi Supreme Court.
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New Jersey Appellate Court Reverses Summary Judgment Ruling in Favor of Insurer in Coverage Dispute Regarding Northeast Blackout of 2003
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The Superior Court of New Jersey, Appellate Division recently held that the term “physical damage,” as used in a policy covering damage due to the loss of electric power, was ambiguous in the context of the Northeast Blackout of 2003 involving a loss of power that was not caused by permanent “physical damage” to the electrical plant and equipment.