The Bermuda Monetary Authority (BMA) announced that it has appointed Craig Swan, formerly the BMA’s Director, Insurance Supervision, to the newly created post Managing Director, Supervision. Mr. Swan will lead all of the BMA’s regulatory functions. The Director, Banking, Trust, Corporate Services and Investment and Director, Insurance Supervision will each report to Mr. Swan.
Read More Swan Appointed Managing Director, Supervision by BMA

Monday’s attack affected hundreds of lives and businesses struck by the tragedy. Insurers and reinsurers will undoubtedly face claims and losses in the wake of Monday’s devastation. …
Read More Patriot’s Day Bombing – Insurance Issues?

On April 3, 2013, the Federal Reserve Board (“FRB”) approved a final rule (“Final Rule”) that establishes (1) definitions of the terms “significant nonbank financial company” (or, more commonly referred to as SIFIs or “systemically important financial institutions”) and “significant bank holding company,” and (2) the requirements for determining when a company is “predominantly engaged in financial activities.” …
Read More FRB Issues Final Rule on SIFIs

On 1 April 2013, the Prudential Regulation Authority (PRA) published a Policy Statement on its decision-making process, and disciplinary and enforcement procedures. …
Read More UK: PRA Publishes Policy Statement on Its Approach to Decision-Making and Enforcement

For insurers doing business in Florida, a recent appellate court decision reaffirms the importance of a timely offer of settlement even in extremely challenging conditions to protect against bad-faith liability. …
Read More Florida Appellate Court Decision Increases Pressure On Insurers To Settle Claims In Order To Avoid Potential Bad Faith

On 1 April 2013, the Prudential Regulation Authority (PRA) published a policy statement on its power of direction over qualifying parent undertakings, incorporating feedback from a consultation on this power. …
Read More UK: PRA Publishes Policy Statement on Its Power of Direction Over Qualifying Parent Undertakings

In the recent case of Alliance of Nonprofits for Ins. v. Scott J. Kipper, et al., the Ninth Circuit determined that the Liability Risk Retention Act of 1986 (“LRRA”) preempted an order issued in 2010 by the Nevada Insurance Commissioner barring the Alliance of Nonprofits for Insurance Risk Retention Group (the “Alliance”) from issuing first dollar automobile insurance policies (the “Order”). The LRRA is a federal law which authorizes risk retention groups (“RRG”) to provide liability insurance coverage. …
Read More Foreign Risk Retention Groups Permitted to Issue Automobile Liability Insurance in Nevada to Satisfy Statutory Minimum Coverage Requirements

This updates our December 3, 2012 blog post.

Attorneys from Edwards Wildman attended the Principle-Based Reserving Implementation (EX) Task Force (“Task Force”) meeting of the National Association of Insurance Commissioners (“NAIC”) in Houston on April 6, 2013, where the Task Force released a new draft of its principle-based reserving (“PBR”) implementation plan (“Plan”) for comment. …
Read More NAIC Releases PBR Implementation Plan for Comment

The Centers for Medicare & Medicaid Services (“CMS”), part of the United States Department of Health and Human Services, has proposed new rules to create conflict-of-interest standards applicable to navigators. Under the Patient Protection and Affordable Care Act (the “Act”), navigators will assist consumers in obtaining coverage from health insurance exchanges to be established under the Act. …
Read More New Rules Proposed to Prohibit Persons Connected with Stop-Loss Insurance Coverage from being Health Insurance Exchange Navigators; New Disclosure Requirements also Proposed

On 6 April 2013, the Consumer Insurance (Disclosure and Representations) Act 2012 (“the Act”) will come into force, and apply to all consumer insurance contracts entered into on and after that date. …
Read More UK: Coming Into Force: The Consumer Insurance (Disclosure and Representations) Act 2012