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

A federal court, applying New York law, recently held that a “professional services” exclusion in a D&O policy applied to lawsuits against a broker-dealer arising out of its underwriting and marketing of shares issued by a set of real estate investment trusts (or “REITs”). See David Lerner Assocs. v. Philadelphia Indem. Ins. Co., No. 2:12-cv-01609-JFB-AKT (E.D.N.Y. Mar. 29, 2013). …
Read More Court Holds That Professional Services Exclusion In D&O Policy Applies To Broker-Dealer’s Distribution of REITs

The Connecticut Insurance Department (the “CID”) has approved Swiss Reinsurance Co. Ltd. as the first certified reinsurer eligible for reduced credit for reinsurance collateral requirements in Connecticut, according to a notice published on the CID website April 2, 2013. …
Read More Connecticut Approves First Certified Reinsurer

In an exhaustive 161-page ruling issued on Friday, Judge Naomi Reice Buchwald of the Southern District of New York dismissed the majority of the claims brought by plaintiffs seeking damages for losses caused by LIBOR. …
Read More SDNY Judge Guts LIBOR Claims On Motion to Dismiss, But Banks Are Not Off The Hook Yet

HHS UPS MEDICAID EXPANSION PAYMENTS FUNDING
On March 29, the U.S. Department of Health and Human Services (HHS) issued a final rule under which the federal government will pay the entire cost of covering newly eligible enrollees under the Patient Protection and Affordable Care Act’s Medicaid expansion for the first three years of the program. …
Read More Healthcare Update: HHS Ups Medicaid Expansion Payments Funding; BCBS of MI Antitrust Case Dropped