The National Association of Insurance Commissioners’ (“NAIC”) Macroprudential Working Group (“MWG”) is reviewing the influence that private equity firms have over the insurance industry. The MWG has recently  approved a list of “regulatory considerations” that the MWG will be reviewing and considering.  The list can be found here, and the MWG’s comments can be found here.
Read More NAIC Assessing Private Equity Involvement in Insurance Industry

On February 3, 2022, Delaware Governor John Carney signed Senate Bill 203 (the “Bill”) into ‎law, which allows corporations to purchase and maintain directors’ and officers’ (“D&O”) ‎liability insurance through captive insurance companies.‎…
Read More Delaware Corporations Can Now Purchase D&O Coverage Through Captives

On December 22, 2021, New York State Governor Kathy Hochul signed Senate Bill S653A which amends the New York Insurance Law by adding Section 3458 regarding the electronic delivery of property and casualty insurance notices.
Read More New York State Law Regarding Electronic Delivery of Insurance Notices to Take Effect March 22

Florida lawmakers have recently introduced SB 1402 that could open up additional avenues for the placement of surplus lines business in the state. …
Read More LL Surplus Lines Series (Entry 33): Florida Legislators Consider Surplus Lines Bills

On Tuesday, January 25th, the New York State Senate voted to confirm Adrienne Harris as Superintendent of the New York State Department of Financial Services (the “NY DFS”).  Harris had served as acting superintendent of the NY DFS since being nominated for the full-time position by Gov. Kathy Hochul in August of 2021.
Read More State Senate Confirms Gov. Hochul’s Pick to Head NY Department of Financial Services

Locke Lord’s Privacy & Cybersecurity Newsletter provides topical snapshots of recent developments in the fast-changing world of privacy, data protection, and cyber risk management.
Read More Privacy & Cybersecurity Newsletter – January 2022

The Texas Department of Insurance (“TDI”) adopted new administrative rules for reciprocal reinsurers that took effect on January 1, 2022. According to TDI, the goal of the new reinsurance regulations is to “ensure TDI retains its authority to regulate credit for reinsurance matters associated with covered agreements, align TDI’s rules with the current approach to regulate reserve financing arrangements for certain life insurance policies, and align TDI’s rules with updates to the National Association of Insurance Commissioners’ (NAIC) accreditation requirements.”…
Read More New Texas Reinsurance Rules for Reciprocal Insurers Take Effect

In 1990, the Second Circuit in Bellefonte Reinsurance Co. v. Aetna Casualty & Surety Co., 903 F.2d ‎‎910 (2d Cir. 1990), affirmed a District Court judgment that reinsurers were not obligated to pay ‎additional sums for defense costs over and above the limits of liability specified in a facultative ‎reinsurance certificate. Since then, the Bellefonte rule acted as a de facto cap for both indemnity and ‎expense under a facultative certificate. This issue of ‘limits’ had been hotly contested, and Bellefonte ‎seemed to put it to rest. ‎…
Read More Locke Lord QuickStudy: What Goes Around Comes Around

On December 7, 2021, the New York Department of Financial Services (“NY DFS”) released an industry letter providing guidance on Multi-Factor Authentication (“MFA”).   MFA, which requires users of information systems to provide an additional “factor,” often through a one-time code or push notification to their mobile device, in addition to their password when accessing information systems.
Read More NY DFS Releases Guidance on Multi-Factor Authentication

A Locke Lord team led by Zachary Lerner (New York) assisted Convex Insurance UK Limited (CIL) and Convex Re Limited (CRL) in obtaining reciprocal reinsurer status, the first alien insurers to receive such designations in the United States.
Read More Locke Lord Team Represented Convex in Obtaining Reciprocal Reinsurer Status