In the case of (1) Sealion Shipping Limited (2) Toisa Horizon Inc v Valiant Insurance Co [2012] EWHC 50 (Comm), Mr Justice Blair held that a marine insurer could not avoid liability for machinery breakdown under a loss of hire policy. …
Read More UK: Court Rules on the Materiality of Non-Disclosures, and the Meaning of “Want of Due Diligence” in a Marine Policy

In jurisdictions that impose on an insurer a common-law duty of good faith and fair dealing and a statutory duty not to act vexatiously or unreasonably, an insurer may be found to have violated one duty even if it did not violate the other. The Eighth Circuit recently handed down a ruling serving as an example of this principle. In Tripp v. Western National Mutual Insurance Co., the Court of Appeals affirmed post-judgment relief based on South Dakota’s statutory prohibition against unreasonable or vexatious behavior by an insurer.   …
Read More Client Advisory – Federal Court of Appeals Affirms Statutory Bad-Faith Liability Imposed on Insurer Despite Jury’s Refusal to Find Liability for Common-Law Bad Faith

By March 1, 2012, companies with personal information of Massachusetts residents must amend their existing contracts with vendors that handle such information to require the vendors’ compliance with the Massachusetts data security regulations. …
Read More Client Advisory – March 1 Deadline for Companies and Vendors with Massachusetts Personal Information

In Mary Harvey v. Motor Insurers’ Bureau (QBD (Merc) (Manchester), Claim No: 0MA40077, 21 December 2011), the High Court held that it was not appropriate to grant leave to appeal an arbitrator’s decision that the victim of a road traffic accident was not entitled to compensation for personal injury under s.69 the Arbitration Act 1996 (the Act) (s.69 of the Act only allows appeals to be made where the arbitrator has made some error of law). …
Read More UK: High Court Confirms That Bringing Appeals of Fact Disguised as Appeals of Law Under s.69 of the Arbitration Act 1996 Will Not be Entertained

The Court of Appeal has confirmed that the wording of a “top and drop” excess insurance policy did not affect the order in which liability attaches under a tower of insurance. …
Read More UK: Court of Appeal Confirms Order of Attachment in Insurance Tower With Top and Drop Policy

Over the years, there has been much debate that the practice of the insurance market in allowing an insurance broker (acting as the agent of the assured) to receive commission from the insurer may contravene the equitable principle that an agent cannot make a profit from his office without disclosing the profit to his principal (the assured). …
Read More Hong Kong: Landmark Decision on Disclosure of Insurance Brokerage Commission

On 12 January 2012, a vote by the Economic and Monetary Affairs Committee of the European Parliament on the Omnibus II Directive was delayed until 21 March 2012. When adopted, Omnibus II will make significant changes to the Solvency II Directive. The vote had previously been rescheduled from 20 December 2011 to 24 January 2012. …
Read More EU: Solvency II Faces Possible Further Delay

On 18 November 2011, Catlin Group Limited (Catlin) announced the formation of a strategic partnership with China Reinsurance (Group) Corporation (China Re), the biggest reinsurance company in China. …
Read More China Re to Invest Into Lloyd’s of London Through a Syndicate Created With Catlin

On 13 December 2011, the eighth supplement (Supplement VIII) to the Closer Economic Partnership Arrangement (CEPA) between Hong Kong and Mainland China was signed, marking the latest enhancement of economic and trade cooperation between Hong Kong and the Mainland. …
Read More Hong Kong Insurance Brokers are Allowed to Set Up in Guangdong Province