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A federal district court in Washington handed Validus Reinsurance a major win on Wednesday, declaring that the IRS has no authority to assess excise tax on retrocessions. The decision in Validus Reinsurance, Ltd. v. United States of America, No. 13-0109 (D.D.C. Feb. 5, 2014), is available here. …
Read More Validus Wins Round One: Retrocessions Not Taxable Under 26 USC § 4371(3)

This past Friday, the Texas Supreme Court gave general liability insurers pointed guidance about what constitutes an “assumption of liability” for purposes of a contractual liability exclusion. …
Read More Texas High Court Rules That Contractor Does Not “Assume Liability” When Agreeing To Perform Work In Good & Workmanlike Manner

On December 18, 2013, the National Association of Insurance Commissioners (NAIC) approved four jurisdictions as “Conditional Qualified Jurisdictions,” meeting its year-end goal for expedited review of certain jurisdictions. The four jurisdictions are Bermuda, Germany, Switzerland and the United Kingdom.
Read More NAIC: Bermuda, Germany, Switzerland and UK Now Qualified for Reduced Collateral Requirements

While interpreting a policy governed by Illinois law, the Seventh Circuit found ambiguity based on two “plausible” interpretations and found coverage, a finding based on language that appears to have been construed in isolation and without regard to the purpose or pricing of the policy. That case was National Casualty Co. v. White Mountains Reinsurance Co., no. 11-3158 (7th Cir. Oct. 30, 2013).
Read More Based on a Doubtful “Plausible” Reading of an Insurance Policy, the Seventh Circuit Finds Coverage

On December 12, 2013, the Federal Insurance Office (the “FIO”) published its long-delayed report entitled “How to Modernize and Improve the System of Insurance Regulation in the United States” (the “Report”). The FIO was required under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act to issue the Report almost two years ago. …
Read More FIO Weighs in on Financial Captive Reinsurers and the Use of PBR

Until last week, Indiana courts were strict in their treatment of an insurance bad-faith lawsuit. Not only must the plaintiff show ill will by the insurer, he must show that the insurer denied coverage wrongfully. E.g., Foster v. State Farm Fire & Cas. Co., no. 1:10-cv-20 (N.D. Ind. Aug. 17, 2011). …
Read More An Indiana Court Allows a Bad-Faith Claim Even Though the Insurer Denied Coverage Correctly

At the International Insurance Relations (G) Committee meeting on Sunday, December 15, there were presentations by Gordon Brady, Deputy Secretary General of the International Association of Insurance Supervisors (IAIS) and Gabriel Bernadino, Chairman of the European Insurance and Occupational Pension Authority (EIOPA) on the development of international standards for insurance company solvency by the IAIS. …
Read More NAIC Disputes Need for Global Capital Standards

On November 24, Iran entered into a Joint Plan of Actionwith the United States, China, the Russian Federation, France, Germany, and the United Kingdom (the “E3/EU+3”), whereby in exchange halting to certain uranium enrichment activities and agreeing to be monitored by the International Atomic Energy Agency, the E3/EU+3 agreed to, among other things, suspend U.S. and E.U. sanctions on Iran’s petrochemical exports and associated services (“Joint Plan”). …
Read More Suspension of U.S. and E.U. Sanctions on Insurance Related to Iran’s Petrochemical Exports

Edwards Wildman hosted a roundtable at the 2013 NAIC Fall National Meeting in Washington, DC with Richard Schlesinger, Chief of Reinsurance and Surplus Lines, from the New Jersey Department of Banking and Insurance for a discussion about the New Jersey Reinsurance Certification Program. …
Read More NAIC: Edwards Wildman Roundtable with Richard Schlesinger, Chief of Reinsurance and Surplus Lines New Jersey Department of Banking and Insurance