The Lloyd’s market saw considerable levels of acquisition activity in 2011. Between September and year end, among other transactions: Haverford made an offer to acquire a stake in LSE listed Omega (then, following a deterioration in Omega’s third-quarter results, announced that the offer had lapsed); a consortium led by Tawa agreed to acquire Whittington; Ryan Specialty Group acquired Jubilee; Hardy announced that it was considering finding a buyer and had received several preliminary expressions of interest (including from Beazley); Torus agreed to acquire Broadgate; ProSight acquired TSM Agencies; and Randall & Quilter agreed to acquire Synergy Insurance Services (UK).
Read More Lime Street M&A Roundup: Autumn Brings a Flurry of Continuing and Fresh Activity
Congressional Panel Expresses Concern over Medical Loss Ratio
By Troutman Pepper Locke on
Concerns over the Medical Loss Ratio (“MLR”), a key requirement under the Patient Protection and Affordable Care Act of 2010 (“PPACA”), were expressed at a House Subcommittee on Investigations, Oversight and Regulations (the “Subcommittee”) hearing in mid-December over how it will reduce competition among healthcare insurers and harm healthcare insurance agents and brokers. The Subcommittee is a subset of the House Small Business Committee. …
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Client Advisory – Federal Courts Find that Reinsurer is Not Directly Liable to Third Parties
By Troutman Pepper Locke on
Two recent decisions from federal courts addressed an important issue for many reinsurers: whether a non-party to a reinsurance agreement (such as a cedent’s insured) can proceed directly against the reinsurer for amounts owed to the non-party by the ceding company. …
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Connecticut Insurance Department Announces New Cooperation Agreement with Germany
By Troutman Pepper Locke on
On December 19, 2011, the head of the Connecticut Insurance Department (the “CID”), Commissioner Thomas Leonardi, announced the signing of a memorandum of understanding (“MoU”) with the German Federal Financial Supervisory Authority (“BaFin”), the governmental body responsible for financial regulation in Germany. Under the MoU, the CID and BaFin may request assistance from one another, including obtaining information on regulated companies and individuals. …
Read More Connecticut Insurance Department Announces New Cooperation Agreement with Germany
Connecticut Issues Guidance on Annuity Suitability Training Requirements
The Connecticut Insurance Department issued a bulletin on December 19, 2011 (the “Bulletin”), explaining the training requirements mandated by Sections 38a-432a-1 to 38a-432a-8 of the Regulations of Connecticut State Agencies (the “Regulation”) for insurance producers who sell annuity products. The Regulation goes into effect on February 18, 2012, and implements the National Association of Insurance Commissioners Suitability in Annuity Transactions Model Regulation in Connecticut. …
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A Reinsurance Perspective: The Aggregation of Losses Following the Tohoku Earthquake and Tsunami
By Troutman Pepper Locke on
Posted in Uncategorized
The converging events that led to the devastation in Japan will raise a number of issues relating to the aggregation of losses under reinsurance contracts. The precise wording of aggregation provisions in these contracts will be crucial in determining the scope of coverage. Unfortunately, much uncertainty remains as to the meaning of many aggregation provisions and ‘hours clauses’ in particular. …
Read More A Reinsurance Perspective: The Aggregation of Losses Following the Tohoku Earthquake and Tsunami
Illinois Issues Revised Bulletin on Use of Retained Asset Accounts
By Troutman Pepper Locke on
On December 12, 2011, the Illinois Department of Insurance issued a revised bulletin (the “Bulletin”) regarding the use of retained asset accounts by life insurance companies. Retained asset accounts, for purposes of the Bulletin, are mechanisms by which an insurer or entity acting on behalf of an insurer may settle proceeds payable under a policy by depositing such proceeds into an account, and retaining them in accordance with the terms of supplementary contract not involving annuity benefits. …
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NAIC Examines Contingent Annuities
By Troutman Pepper Locke on
Last month, the Life Insurance and Annuities (A) Committee of the National Association of Insurance Commissioners (“NAIC”) formed a sub-group charged with reviewing issues surrounding contingent annuities. The charge comes in response to industry disagreement over the classification of contingent annuities. …
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Client Advisory – Florida Supreme Court to Decide Constitutionality of Solicitation Restrictions on Public Adjusters
By Troutman Pepper Locke on
Posted in Florida Developments, United States
Currently before the Florida Supreme Court is a case challenging the constitutionality of Section 626.854(6) of the Florida Statutes, which imposes restrictions on the solicitation of business by public adjusters within the 48 hours immediately following an event that may become the subject of a claim under an insurance policy. A decision is expected within weeks. …
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California Issues Bulletin Specifying Annuity Training Requirements
By Troutman Pepper Locke on
The California Insurance Department issued a bulletin (“Bulletin”) on December 6, 2011 regarding annuity training requirements under California Insurance Code Sections 1749.8 and 10509.9 15(a). …
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