Boeing Company has announced in its recent 10-K filing (9 February 2009) that it has prevailed in an arbitration brought by insurers in respect of a defective model 702 satellite. Insurers of Thuraya Satellite Telecommunications (Thuraya) commenced arbitration in 2004 alleging that Boeing Satellite Systems International, Inc. (BSSI) breached its contract with Thuraya for the sale of a satellite that experienced power loss issues.
Jurisdictions
U.S. Court of Appeals for the Second Circuit Finds that Insured Cannot Assert a Direct Action Against its Reinsurer
By Troutman Pepper Locke on
Plaintiff Jurupa Valley Spectrum, LLC (“Jurupa”) is a beneficiary of certain surety bonds issued by Frontier Insurance Company, which were reinsured by National Indemnity Company (“NICO”). See Jurupa Valley Spectrum, LLC v. National Indemnity Co. and National Liability & Fire Ins. Co., No. 07-cv-3211 (2d Cir. Feb. 4, 2009).
UK: Court of Appeal Considers Non-Disclosure and Notification in the Context of Legal Expenses Insurance
By Troutman Pepper Locke on
Posted in United Kingdom
In Laker Vent Engineering Ltd v Templeton Insurance Ltd [2009] EWCA Civ 62 Templeton Insurance Ltd (Templeton) appealed against a decision that it was bound to indemnify Laker Vent Engineering Ltd (Laker) under a legal expenses policy in respect of the costs arising out of an arbitration between Laker and a German company, Gas Wesser Umwelt Gommen GmbH (GWUG). …
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Lawmakers to Introduce the National Insurance Consumer Protection and Regulatory Modernization Act
By Troutman Pepper Locke on
On February 11, 2009, Representatives Melissa Bean (D-IL) and Ed Royce, (R-CA) announced that they plan to introduce the National Insurance Consumer Protection and Regulatory Modernization Act (the “Act”). The Act would create a federal charter for insurance regulation and would create, according to Rep. Bean, a “streamlined and uniform regulatory process that enhances competition and reduces the multi-state regulation barriers.” …
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UK: FSA Clarifies ICOBS Rules in Response to Competition Commission’s Final Report into Payment Protection Insurance (PPI) Market
By Troutman Pepper Locke on
In response to the Competition Commission’s (the Commission) final report into the PPI market which was published on 29 January 2009 (see our previous blog here), the Financial Services Authority (FSA) has considered the measures proposed by the Commission and as a result has clarified its own handbook rules for a firm selling PPI contained in the Insurance Conduct of Business sourcebook (ICOBS).
UK: Competition Commission (CC) Publishes Final Report into Payment Protection Insurance (PPI) Market
By Troutman Pepper Locke on
The CC’s Final Report (the Report) was published on 29 January 2009 and sets out the measures it feels are necessary to enhance the competitiveness of the PPI market.
House of Representatives to Reintroduce the Nonadmitted and Reinsurance Reform Act
Reps. Dennis Moore (D-Kan.) and Scott Garrett (R-N.J.) recently announced their intention to reintroduce the Nonadmitted and Reinsurance Reform Act (the “NRRA”). As we previously reported here and here, the NRRA would establish national standards on how states may regulate and tax surplus lines insurers and also sets national standards concerning the regulation of reinsurance. …
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Superintendent Dinallo Discusses More on the Revival of the New York Insurance Exchange
By Troutman Pepper Locke on
In a recent interview with National Underwriter magazine, New York Superintendent of Insurance Eric Dinallo stated that there are “major top-end brokers” interested in doing business on the potentially-resurrected New York Insurance Exchange (the “Exchange”) if it can help increase market capacity.
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Connecticut Legislatures Proposes Sale Tax on Insurance Service Transactions
By Troutman Pepper Locke on
On February 9, 2009, the Connecticut Legislature held a public hearing regarding on House Bill 6349, An Act Concerning Sales Tax on Services (the “Bill”). The Bill would eliminate the current exemption from the sales tax for professional, insurance, and personal services transactions found in Conn. Gen. Stat. § 12-412(11) and would specifically add professional, insurance, occupational, and personal service transactions to those services that are subject to the state’s sales and use tax under Conn. Gen. Stat. § 12-407(a)(37).
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NJ Supreme Court Finds Umbrella Policy Issued by Excess/Surplus Lines Carrier Not Subject to Automatic Renewal Statute
By Troutman Pepper Locke on
The New Jersey Supreme Court has held that an umbrella policy issued by an excess/surplus lines insurer was not subject to the state’s automatic renewal statute. New Jersey has a statute which provides that no policy shall be “nonrenewed” on its expiration date unless a valid written notice of nonrenewal has been sent to the insured.