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In a letter to CEIOPS dated 29 October 2010, the European Commission has confirmed the countries that will undergo the first wave of equivalence assessments under the Solvency II regime. Bermuda and Switzerland will undergo a full assessment and Japan will be assessed for equivalence in relation to reinsurance under Article 172 only. This reflects the draft advice published by CEIOPS in July 2010 (see here). …
Read More EU: European Commission Confirms First Wave of Solvency II Equivalence Assessments

IMPACT OF THE ELECTION ON HEALTHCARE REFORM:  The November 2 midterm congressional elections resulted in a change in leadership in the House of Representatives, where Republicans are poised to take control of the chamber when the 112th Congress convenes in early January 2011. …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – November 8, 2010

The FTC “Red Flags Rule” mandating identity theft protection programs for financial institutions and a broad range of other companies will go into effect December 31, 2010. Red Flags are warning signals that should alert a business to the risk of identity theft. …
Read More The FTC’s Red Flags Rule on Identity Theft Protection Will Be Effective December 31, 2010

R&Q Reinsurance Co. v. American Motorist Ins. Co., involved a dispute arising under a series of reinsurance treaties entered into by the parties.  Pursuant to the arbitration clauses in the treaties, their dispute was heard by a panel of arbitrators, which issued its “Final Award” on February 5, 2010. …
Read More Illinois Federal Court Rules that Reinsurer’s Motion to Vacate Arbitration Award is Untimely Under the Federal Arbitration Act

On October 21, 2010, the Executive and Plenary committees of the National Association of Insurance Commissioners (“NAIC”) voted to adopt a model regulation containing the definitions and methodologies for calculating medical loss ratios as stipulated under the Patient Protection and Affordable Care Act (“PPACA”).  The model was delivered to Health and Human Services (“HHS”) on October 27, 2010 for certification. …
Read More NAIC Adopts Model Regulation for Final Medical Loss Ratios

In Travelers Casualty & Surety Co. v. Insurance Co. of North America, Nos. 06-4100, 06-4101 and 08-1032 (2010), the U.S. Court of Appeals for the Third Circuit affirmed the District Court’s decision holding that a cedent’s settlement allocation was reasonable and binding on the reinsurer, except for the portion of the allocation that was based upon annualized per-occurrence limits for multi-year policies. …
Read More Third Circuit Rules that Follow the Fortunes Doctrine Binds Reinsurer to Part, But Not All, of a Cedent’s Post-Settlement Allocation

We previously blogged about the District of Connecticut’s decision in Arrowood Surplus Lines Ins. Co. v. Westport Ins. Corp., No. 08-cv-1393 (D. Conn. 2010), in which the court held that a reinsurer had no duty to honor the portion of a cedent’s loss that was outside the scope of the reinsurance agreement at issue.  In that case, Equity Residential argued that a policy issued to it by Arrowood Surplus Lines Insurance Company had a three-year period and sought coverage for losses that occurred from December 15, 1999 to December 15, 2002.
Read More Second Circuit Finds that Portion of Cedent’s Loss is Outside the Scope of the Reinsurance Agreement, Relieving Reinsurer of any Obligation to Follow the Fortunes