On November 6, 2013, the Federal Insurance Office (FIO) released its 2013 Report on the Impact of Part II of the Nonadmitted and Reinsurance Reform Act (NRRA). The purpose of the NRRA, which became effective on July 21, 2011, is to improve the uniformity of state regulation of reinsurance and surplus lines insurance.
Read More FIO Releases Report Regarding Impact of NRRA on Availability of Reinsurers’ Financial Information

By letter dated October 29, 2013, Florida Chief Financial Officer Jeff Atwater inquired with the Florida Office of Insurance (“OIR”) as to why insurance rates have not been reduced for many Florida homeowners given that reinsurers have lowered their rates. Atwater requested a response to the inquiry by December 18, 2013. …
Read More Insurance Regulators Launch Investigation into Lack of Premium Reductions for Florida Homeowners Given Reduced Costs in the Reinsurance Market

In Genesis Housing Association Ltd v Liberty Syndicate Management Ltd (for and on behalf of Syndicate 4472 at Lloyd’s) [2013] EWCA Civ 117, the Court of Appeal confirmed the validity of basis of contract clauses in business insurance contracts. …
Read More UK: Court of Appeal Confirms the Validity of Basis of Contract Clauses in Business Insurance Contracts

On October 25, 2013, the Board of Governors of the Federal Reserve System (the “Board”) applied for membership with the International Association of Insurance Supervisors (“IAIS”), a voluntary membership organization of insurance supervisors and regulators from nearly 140 countries. The mission of the IAIS is to promote globally consistent supervision of the insurance industry. …
Read More The Federal Reserve Board Seeks to Cement its Status as a Global Regulator of Insurance; Applies for Membership with the International Association of Insurance Supervisors

The Court of Appeals of Texas recently held that a third-party claimant does not have standing to assert claims against a commercial general liability insurer.
Read More The Court of Appeals of Texas Holds Third-party Claimant Lacks Standing to Sue Commercial General Liability Insurer

On October 7, the California Court of Appeal, Second Appellate District, held that a liability insurer, in the absence of any demand or settlement offer from a third party claimant, need not initiate settlement negotiations or offer its policy limits, even where liability is clear and there is a substantial likelihood that the third party claimant’s recovery will exceed policy limits. …
Read More California Appellate Court Issues Bad Faith Duty to Settle Opinion

On 3 October 2013, the European Commission published a consultation paper on crowdfunding in the EU. Crowdfunding is an emerging alternative form of financing for businesses or projects which connects those seeking financing with those who can, and wish to, invest, lend or give money. …
Read More European Commission Shows Support for Crowdfunding

On October 4, 2013, the Massachusetts Division of Insurance issued Bulletin 2013-09 (the “Bulletin”). Pursuant to the Bulletin, it is now permissible for producers and surplus lines brokers to charge fees to policyholders in addition to receiving commissions from insurers if:…
Read More Massachusetts Issues Bulletin Permitting Producers to Charge Fees