SEQUESTER TO SQUEEZE MEDICARE PAYMENTS
The automatic spending cuts that went into effect on March 1 under the Budget Control Act, also known as the sequester, included 2% cuts to provider payments under the Medicare program. While cuts to other federal agencies were more substantial – an average of 8% – the new Medicare cuts would nonetheless amount to $11 billion over one year, according to the White House, if the sequester lasts that long. …
Read More Healthcare Update: Sequester to Squeeze Medicare Payments; CMS Announces New Participants in Community-Based Care Program

On March 7, 2013, the Florida Senate Banking and Insurance Committee approved SPB 7018 (the “Bill”) by a vote of 11-1. The Bill, if enacted, would make several changes to Florida’s property insurance laws. …
Read More Florida Senate Committee Approves Bill with Sweeping Changes to Property Insurance Laws

In Astrazeneca Insurance Company v. XL Insurance (Bermuda) Ltd and ACE Bermuda Insurance Ltd, the English Commercial Court for the first time had to decide issues of construction concerning the Bermuda Form, applying English law. …
Read More UK: Commercial Court Interprets Bermuda Form Policy Subject to English Law

As we recently blogged, Rep. Michael Grimm (R-NY) and Rep. Carolyn Maloney (D-NY), both of whom sit on the House Financial Services Committee, have introduced a bill to extend the federal Terrorism Risk Insurance Program (the “Program”) through 2019. …
Read More TRIA – Possible Extension Involves Many Unresolved Issues

In comments made yesterday to the Institute of International Bankers conference in Washington, U.S. Treasury undersecretary for domestic finance, Mary J. Miller said she expected FSOC to vote on designation of some companies as systemically important and therefore subject to Federal Reserve oversight “in the next few months.” …
Read More SIFI Designations Expected in the Next Few Months

On February 20, 2013, the Florida Third District Court of Appeal held that an insurer was required to provide separate counsel to two co-defendants/insureds due to a conflict of interest between them. …
Read More Florida Appellate Court Holds that Insurer Must Provide Separate Counsel to Co-Defendant Insureds

A Washington turf battle between the SEC and the FSOC spilled into public view in comments by SEC Commissioner, Dan Gallagher. The comments, made at the Practicing Law Institute’s “SEC Speaks” forum last Friday, criticized recent action taken by FSOC, created by the 2010 Dodd-Frank-Act. …
Read More Regulator Rivalry Brewing Between SEC and FSOC

The Massachusetts Appeals Court recently held, in an unpublished decision, that an insurer breached its duty to defend a town against a suit filed by the sister of a man wrongly convicted for murder, in Waters v. Western World Insurance Company, No. 11-P-2124. A copy of the decision from the official Massachusetts reports website is available here. …
Read More Massachusetts Appeals Court Finds Duty to Defend Wrongful Conviction Suit

Brazil has passed a series of resolutions aimed at strengthening insurers’ capital requirements. Brazil’s insurance supervisor SUSEP said it drew up the resolutions which were approved by the National Council of Private Insurance (CNSP). The resolutions set out a risk-based framework in line with international best practice for supervision. …
Read More Brazil Passes Risk-Based Capital Requirements

During the NAIC 2012 Fall National Meeting, a proposal to amend the NAIC’s Stop Loss Insurance Model Act to increase the minimum individual attachment point – the equivalent of a “deductible” – for stop loss insurance from $20,000 to $60,000, as well as changes to aggregate attachment points, was defeated by a 10-8 vote. …
Read More NAIC Defers Action on Stop Loss Insurance Attachment Points; Some States Begin Increases