In February 2012, the New York State Department of Financial Services (DFS) announced that it is launching a “wide-ranging probe into the accuracy of the data used by insurers and health maintenance organizations (HMOs) to request health insurance rate increases.” …
Read More N.Y. Regulators Launch Audit of Health Insurance Rates

Connecticut Governor Dannel P. Malloy has recently put forth proposals in an effort to make Connecticut an enticing domicile for captive insurance companies.  According to media reports, Governor Malloy has asked the legislature to approve a $7,500 first-year tax credit for new captive insurers. …
Read More Connecticut Governor Announces Plans To Build Captive Insurance Market

In a decision likely to impact foreign nationals as well as airlines, airports, and related insurers, the 9th Circuit Court of Appeals recently affirmed a lower court ruling which held that a Malaysian citizen studying in the U.S. has legal standing to sue in U.S. courts to challenge the mistaken presence of her name on the No-Fly List. …
Read More Ninth Circuit Affirms Foreign Nationals’ Standing to Challenge “No-Fly List” Inclusion

CONGRESS PASSES “DOC FIX”
The payroll tax cut deal approved by the House and Senate on February 17 includes $21 billion in healthcare spending, much of which comes from blocking the physician pay rate drop of 27.4% that would have taken effect on March 1. Medicare Fee Schedule payment rates will now be frozen at their current levels through December 31. …
Read More Healthcare Update: Congress Passes “Doc Fix”; North Carolina Granted MLR Waiver; Wisconsin’s Request Denied

In a market bulletin published on 14 February 2012, Lloyd’s announced a new Code of Practice and Guidance note in relation to the transfer of interests in Lloyd’s corporate members. Greater consideration is now being given to acquiring interests in corporate members as a means of acquiring underwriting capacity outside of the capacity auctions. …
Read More UK: Transfer of Interests in Lloyd’s Corporate Members

On 15 February 2012, the German High Court, the Bundesgerichtshof (BGH), the final appeal court in Germany, allowed a German direct insured to pursue his claim against Equitable Life (effectively for misselling a German law insurance policy) despite a Scheme of Arrangement being effective pursuant to Part 26 of the UK Companies Act 2006. …
Read More EU: German High Court Allows Direct Insured to Pursue Claim for Damages Against Equitable Life Despite UK Scheme of Arrangement

In the case of Standard Life Assurance Ltd v ACE European Ltd & 10 ORS [2012] EWHC 104 (Comm), Mr Justice Eder held that Standard Life Assurance Limited (SLAL) was entitled to recover under its professional indemnity insurance policies (the Policies) from the defendant insurers (the Insurers) in respect of remediation payments made following a significant fall in value of the Standard Life Pension Sterling Fund (the Fund). …
Read More UK: Insured Entitled to Recover “Mitigation Costs” From Professional Indemnity Insurers

The Supreme Court’s decision in the Employers’ Liability (EL) Insurance “Trigger” Litigation is expected imminently. It is not just insurers who eagerly await that decision. …
Read More Employers’ Liability Insurance “Trigger” Litigation – Supreme Court decision expected imminently

On February 9, 2012, California Insurance Commissioner Dave Jones announced that the Office of Administrative Law approved his request to make permanent the emergency regulation issued last year requiring health insurers to allocate a larger share of insurance premiums to actual medical care, rather than overhead costs and profits. …
Read More Emergency Regulation to Enforce Medical Loss Ratio Requirements is Made Permanent in California

The Federal Insurance Office (FIO) has missed its deadline to release its widely-anticipated report to Congress on how to improve and modernize insurance regulation in the U.S.  The report, which was due in January 2012, is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act and is expected to provide insight into how the FIO plans to use its authority. …
Read More FIO Misses Deadline To Submit Federally-Mandated Report to Congress