This updates our January 28, 2009 and December 22, 2008 blog postings. On February 10, 2009, the National Association of Insurance Commissioners (“NAIC”) and the National Conference of Insurance Legislators (“NCOIL”) filed suit in the U.S. Court of Appeals for the District of Columbia Circuit seeking to overturn Rule 151A adopted by the Securities and Exchange Commission (“SEC”) which classifies certain indexed annuities, previously regulated as insurance, as securities, and thus subjects them to federal, rather than state, regulation.
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United States
NY Insurance Department Issues OGC Opinion Answering Questions Regarding NY’s Late Notice Statute
By Troutman Pepper Locke on
The New York Insurance Department issued OGC Opinion No. 09-01-05 addressing several questions posed with respect to Chapter 388 of the Laws of 2008 (generally referred in this blog as the late notice Legislation), and the discussion of the Legislation in the Insurance Department’s Circular Letter 26 (Nov. 18 2008),
Boeing Prevails in Satellite Arbitration
By Troutman Pepper Locke on
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.
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).
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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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.
The U.S. Re Under 40s Presents “It’s Not Your Father’s Reinsurance Anymore – Putting Reinsurance in Your Terms” – a Complimentary Event on March 12
By Troutman Pepper Locke on
The U.S. Reinsurance Under 40s Group, Inc. invites you to our next event, which will take place on March 12 at QBE the Americas’ office in downtown New York. The Re Under 40s Group welcomes Frank Nutter, President of the Reinsurance Association of America (RAA), and his daughter Alycia Kiley, Vice President at Riggs, Counselman, Michaels & Downes (RCM&D), as they present insights on hot industry topics and lead a discussion about how reinsurance companies and organizations can better communicate with young professionals in today’s networked world. …
Read More The U.S. Re Under 40s Presents “It’s Not Your Father’s Reinsurance Anymore – Putting Reinsurance in Your Terms” – a Complimentary Event on March 12