On Thursday, New York Superintendent of Insurance Eric Dinallo proposed a regulation seeking to eliminate the existing collateral requirements imposed on foreign and alien reinsurers operating in New York.
Read More New York Insurance Superintendent Proposes Change in Collateral Requirements for Non-New York Admitted Reinsurers
Jurisdictions
NAIC Shares its Proposal to Modernize Reinsurance Regulation with the IAIS
By Troutman Pepper Locke on
Earlier this week, the NAIC announced its proposal, as discussed in our June 7, September 12 and October 9 postings, to modernize U.S. reinsurance regulation to its international counterparts during a panel discussion at the 14th Annual Conference of the International Association of Insurance Supervisors (IAIS).
…
Read More NAIC Shares its Proposal to Modernize Reinsurance Regulation with the IAIS
Federal Terrorism Risk Insurance Program Moves One Step Closer to Renewal
Renewal of the federal terrorism risk insurance program established by the Terrorism Risk Insurance Act of 2002 (“TRIA”) moved one step closer to reality yesterday when the Senate Banking, Housing and Urban Affairs Committee approved legislation seeking a seven year extension of the program by a 20-1 vote. …
Read More Federal Terrorism Risk Insurance Program Moves One Step Closer to Renewal
Commentators Disagree Over D&O/E&O Exposure from Subprime Litigation
By Troutman Pepper Locke on
A recent report by Lehman Brothers Equity Research (“Lehman”) concluded that the estimated impact to D&O/E&O insurers from subprime issues will likely be no more than $1 billion. Lehman Brothers arrived at this estimate using past financial institution professional liability problems as a benchmark.
…
Read More Commentators Disagree Over D&O/E&O Exposure from Subprime Litigation
Florida Issues Subpoena to Insurer in Investigation into Whether Federal and State Antitrust Laws are Being Broken
By Troutman Pepper Locke on
On October 16, 2007, the Florida Office of Insurance Regulation (“FLOIR”) issued a subpoena to several Allstate entities requesting that they appear before the FLOIR to give testimony and produce documents concerning their reinsurance program, their relationships to risk modeling companies, insurance rating organizations or companies and insurance trade associations. The subpoena calls for the testimony to take place on January 15-16, 2008.
SEC Approves NASD Rule 2821 on Deferred Variable Annuities
By Troutman Pepper Locke on
Posted in Regulatory, United States
On September 7, 2007, the Securities and Exchange Commission announced approval of new NASD Rule 2821 (click here to view the text of New Rule 2821), designed to protect customers against abusive sales practices in the context of deferred variable annuity transactions.
…
Read More SEC Approves NASD Rule 2821 on Deferred Variable Annuities
Florida’s CFO Notes that Insurers Acknowledge Danger of Climate Change
By Troutman Pepper Locke on
Florida’s Chief Financial Officer, Alex Sink, recently co-authored an op-editorial for the Washington Post, noting the insurance industry’s recognition of the perils related to climate change.
…
Read More Florida’s CFO Notes that Insurers Acknowledge Danger of Climate Change
$117.5 Million Settlement in Stock Options Backdating Case
By Troutman Pepper Locke on
Posted in D&O Liability, United States
According to various media reports (click here and here to read two such reports), a settlement in principle has been reached in a stock options backdating involving Mercury Interactive Corporation, a business software company acquired by Hewlett-Packard last year. According to the reports, the settlement is for $117.5 million, which would make this the largest settlement in an options-backdating case to date.
…
Read More $117.5 Million Settlement in Stock Options Backdating Case
Texas Courts Rule That Coverage For Construction Defect Claims May Be Available Under A CGL Policy
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The Fifth Circuit Court of Appeals recently ruled that Mid-Continent Casualty Company owes a duty to defend its insured, Lamar Homes Inc., against construction defect claims under its commercial general liability policy.
California Court of Appeal Holds That Deliberate Acts of Self-Defense Can Be “Accidents” That Give Rise to the Potential For Liability Coverage
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
A California Court of Appeal recently held that “deliberate acts of self-defense” can be “accidents” for purposes of determining an insurer’s duty to defend under a liability insurance policy.