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According to a recent article in Business Insurance, risk management consulting firm Towers Watson & Co. estimates that commercially insured losses from the explosion at the Deepwater Horizon oil rig in the Gulf of Mexico will be between $4 billion and $6 billion.   Nonetheless, Towers Watson notes that its estimate represents only a fraction of the overall economic loss suffered from the Gulf oil spill, which so far is estimated to be $35 billion. …
Read More Oil Rig’s Insured Losses estimated to be $4 Billion to $6 Billion

According to a recent Dow Jones News Service article, leading insurance companies have recently stated that they do not expect the Deepwater Horizon explosion in the Gulf to be a catastrophic event for the so-called “upstream” insurance market.  The upstream insurance market, which sells coverage to companies that are involved in the search for, development and production of oil, operates in its own niche of the property and casualty insurance industry collecting roughly $2.5 billion a year in premiums. …
Read More Upstream Insurers See Losses From Gulf Oil Spill But Continue Business

Effective July 1, 2010, Florida joined several other states in reducing the liability of trustees of irrevocable life insurance trusts (“ILITs”), with the enactment of § 736.0902 – Non-application of prudent investor rule.  The Florida prudent investor rule protections relieve the trustee from any duty to manage the life insurance as an investment.  Further, it relieves the trustee from liability for any loss sustained with respect to the life insurance. …
Read More Florida’s Statutory Reduction of ILIT Trustee Liability

Edwards Angell Palmer & Dodge is proud to provide its clients and friends with a comprehensive introductory guide to insurance and reinsurance regulations, claims, coverage, and transaction-related information and tips. This collection touches on both the US and UK laws and business practices and reflects the work of our attorney teams across practices and around the world. …
Read More EAPD Announces Publication of 2010 Insurance and Reinsurance Guide

CMS PROPOSES CHANGES TO “36 MONTH RULE” FOR HOME HEALTH:  In late July, the Centers for Medicare and Medicaid Services (CMS) published a proposed rule for the Medicare Home Health Prospective Payment System (HH PPS) Rate Update for Calendar Year 2011.  As anticipated, the proposed rule promulgates changes to the so-called “36 month rule” for home health agencies (HHAs) that went into effect in January 2010. …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – August 9, 2010

The comment period for the New York Insurance Department’s (“NYID”) Proposed Tenth Amendment to New York Regulations 17, 20 and 20-A (the “2010 Proposal”) came to a close on August 4, 2010.  The 2010 Proposal, which was released for public comment on July 22, 2010, would reduce the amount of collateral that unauthorized reinsurers must post in order for insurers to receive full credit for reinsurance ceded. …
Read More New York Considers Amendment to Credit for Reinsurance Regulation

On August 2, 2010, United States Senators Mark Pryor (Ark.-D) and John D. Rockefeller IV (W.V.-D) introduced the Insurance Competition and Transparency Act of 2010 (S. 3685), which will remove restrictions on the Federal Trade Commission’s (the “FTC”) authority to review market activity in the insurance industry.  S. 3685 was referred to the Senate Commerce, Science and Transportation Subcommittee on Consumer Protection, Product Safety and Insurance. …
Read More New Senate Bill Introduced That Will Expand Authority of The Federal Trade Commission to Monitor Insurers

Zev Lagstein, M.D. filed a claim for benefits under a disability policy issued by Certain Underwriters at Lloyd’s London (“Lloyd’s”) after he developed heart disease and other ailments.  After Lloyd’s failed to pay out on Lagstein’s claim, he brought suit in federal court, which was stayed pending arbitration.  A three-member arbitration panel ultimately found in favor of Lagstein, awarding him the full amount of benefits under the disability policy, plus punitive damages and damages for emotional distress. …
Read More Ninth Circuit Reverses District Court’s Vacatur of Arbitration Award

On the heels of an investigation by the Attorney General of New York Andrew Cuomo regarding the use of retained asset accounts[1] by life insurers, United States House Representative Deborah Halvorson (Ill.-D) recently introduced legislation that would require, among other things, beneficiaries of the Servicemembers’ Group Life Insurance program to receive financial counseling and disclosure information regarding life insurance payments. …
Read More Legislation Introduced into the House that Mandates Certain Disclosures to Beneficiaries of Life Insurance for Military Personnel

In a decision by the United States District Court for the Southern District of New York, AXA Versicherung AG v. New Hampshire Ins. Co., 05 Civ. 10180 (JSR) (S.D.N.Y. 2010), the court held that certain fraud claims were not a matter of contract interpretation and, therefore, not arbitrable under a provision in a facultative reinsurance agreement that provided for arbitration of disputes “arising out of the interpretation of this agreement.” …
Read More Federal Court Finds that Fraud Claim is not Arbitrable