The DRI Bad Faith conference concluded on Thursday afternoon with a presentation by Sarah M. Thorpe of Gordon & Rees LLP and Donald M. Carley of State Farm Insurance. The panel began with a discussion of the latest developments in strategies for defending bad faith claims. The panel observed that, when faced with an actual or potential bad faith case, counsel is advised to know the facts of the case by reviewing the claims file, interviewing key witnesses, identifying the undisputed and disputed issues, and reviewing the relevant case law.
Read More Live Blog: DRI Insurance Bad Faith & Extra Contractual Liability Conference (Boston): Thursday Late Afternoon Panel

Martin Lister, a Hong Kong-based partner in Edwards Wildman’s Insurance and Reinsurance Department, discussed how Hong Kong will be establishing a new independent super regulator for the insurance industry in Global Reinsurance. In the article, “How Hong Kong is Preparing for its New Super-Regulator,” Lister said, “There will be some discomfort in the industry because these guys have got to do something. They may have 200 employees and 120 of them will be new. …
Read More Edwards Wildman’s Martin Lister Analyzes How the Hong Kong Insurance Industry is Preparing for a New Super-Regulator in Global Reinsurance

On a call held this morning, the Captives and Special Purpose Vehicle Use (E) Subgroup of the Financial Condition (E) Committee of the National Association of Insurance Commissioners (“NAIC”) adopted a draft of the Captives and Special Purposes Vehicles White Paper. The White Paper is now being referred to the Financial Condition (E) Committee for review and further consideration. …
Read More NAIC Subgroup Approves Draft White Paper On Life Insurers’ Use of Captives and SPVs for Reinsurance Transactions

Earlier this month, Prudential Financial, Inc. and American International Group, Inc. confirmed that they received notice of a proposed determination by the Financial Stability Oversight Council (“FSOC”) that they should be subject to stricter prudential regulatory standards and supervision by the Board of Governors of the Federal Reserve System as systemically important financial institutions (“SIFIs”), pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Read More FSOC Closer to Formal Designation of SIFIs

In Osbourne Renfrow v. Redwood Fire and Casualty Ins. Co., et al., 288 F.R.D. 514 (D. Nev. 2013), the U.S. District Court, District of Nevada recently denied an insurer’s motion to bifurcate breach of contract and bad faith claims into two separate proceedings. The court ruling arose out of an underinsured motorist (UIM) claim involving Plaintiff Osbourne Renfrow, who was involved in an accident with an underinsured motorist, causing injuries to Renfrow’s neck, back and shoulders. …
Read More Court Denies Insurer’s Motion to Bifurcate Breach of Contract and Bad Faith Claims

CMS Releases SHOP Program Rule

On May 31, the Centers for Medicare & Medicaid Services (CMS) released a final rule on the Small Business Health Options Program, part of the Affordable Care Act (ACA), as well as simplified application forms for the program. The final rule was published in the Federal Register on June 4. …
Read More Healthcare Update: CMS Releases SHOP Program Rule; White House Memorandum Updates Exchange Progress

Last month, Representatives Gary Miller (R-Calif.) and Carolyn McCarthy (D-N.Y.) introduced a bill that would prohibit the Board of Governors of the Federal Reserve System (the “FRB”) from imposing additional capital standards on insurers that are designated as systemically important financial institutions (“SIFIs”). …
Read More Proposed Limitations on Fed’s Power Over Nonbank SIFIs

Four members of our Insurance and Reinsurance Department recently conducted a webinar in which they addressed potential claims arising from the Boston Marathon bombings as well as possible insurance implications related to those claims. They discussed a variety of issues, focusing on who will likely bear financial responsibility for the resulting losses and the availability of insurance coverage for both the victims injured by the blast and the scores of businesses impacted by the bombings. …
Read More Webinar Replay – Potential Claim and Insurance Implications of the Boston Marathon Bombings