In the case of Faraday Reinsurance Co Ltd v (1) Howden North America Inc (2) Howden Buffalo Inc [2011] EWHC 2837 (Comm), Howden sought to set aside an order allowing Faraday to serve it with proceedings out of the jurisdiction. …
Read More UK: High Court Allows Service Out of Jurisdiction for Declaratory Judgment

An inquirer recently asked the New York Department of Financial Services Office of General Counsel (the “OGC”) whether (1) lunch bought for an insurance producer by an insurer qualifies as compensation to be disclosed under Regulation 194 (effective January 1, 2011); and (2) if it qualifies, how should an insurer maintain a record of the cost of that lunch when multiple producers are present at the lunch, but only one is the binding producer?  See N.Y. Dept. of Fin. Serv. Opinion No. 11-08-01 (August 5, 2011). …
Read More Keep Those Power Lunch Receipts; the New York Department of Financial Services May Consider Such Entertainment Expenses as Producer Compensation to be Disclosed

Connecticut Insurance Commissioner Thomas Leonardi told the Connecticut legislature’s Insurance and Real Estate Committee on Tuesday, November 15th, that the Connecticut Insurance Department (the “CID”) is currently considering options to revise requirements governing hurricane deductibles.  Commissioner Leonardi reported that following Hurricane Irene, Connecticut residents filed 58,002 claims, and as of October 31st, 64 days after the hurricane, $161 million have been paid to policyholders. …
Read More Connecticut Insurance Department Considers Change in Hurricane Deductible

Andrew R. Stolfi has been appointed as acting director of the Illinois Department of Insurance (the “Department”) by Governor Pat Quinn.  Acting Director Stolfi most recently served as chief of staff and special counsel for policy and legislative affairs at the Department since 2009. …
Read More Illinois Department of Insurance Acting Director Named

In Milton Keynes Borough Council v (1) Michael Nulty, Deceased (2) Wing Bat Security Ltd (Formerly DBI Support Services Ltd) and (3) National Insurance & Guarantee Corporation Ltd : National Insurance & Guarantee Corporation Ltd v (1) Michael Nulty, Deceased (2) Milton Keynes Borough Council (2011) EWHC 2847 (TCC), two parallel actions, the High Court was required to determine the cause of two fires at a recycling centre, and the extent of the liability of the National Insurance & Guarantee Corporation Ltd (NIG) to indemnify the first defendant, Mr Nulty, if he was found by the court to have caused the fires. …
Read More UK: High Court Quantifies an Insurer’s Loss of Opportunity to Secure a Different Result

This updates our June 29, 2011 blog posting.

On November 21, 2011, New York Superintendent of Financial Services Benjamin M. Lawsky announced the issuance of regulations (the “Regulations”) for the implementation of the amendments to Article 63 of the New York Insurance Code that created a Class 3 for special risks (also referred to as the “Free Trade Zone”). …
Read More New York Department of Financial Services Issues Regulations for Large Commercial Insureds

Massachusetts Attorney General Martha Coakley has sent a letter to the Massachusetts State Rating Board requesting that a hearing be held to review the hurricane models used by insurers to set rates for homeowners’ insurance.  The Attorney General claims that some insurers are using models that are untested or discredited, which do not produce accurate estimates that are appropriate for Massachusetts and is resulting in possible overcharges. …
Read More Massachusetts Attorney General Calls For Hearing On Hurricane Models

In a statement last week, Therese Vaughn, Chief Executive Officer of the National Association of Insurance Commissioners (the NAIC”), stated that the state-based regulatory system in the United States should be deemed equivalent to the Europe Union’s Solvency II regulatory process.  According to Vaughn, while the United States will not have a single set of rules like the European Union, the state-based works and has been tested by the recent financial crisis. …
Read More National Association of Insurance Commissioners States That the United States Will Gain Solvency II Equivalence

On November 18, 2011, the day the National Flood Insurance Program was slated to end, President Obama signed another resolution to extend the program until December 16, 2011.  President Obama authorized the prior extension to November 18th on October 4, 2011. …
Read More Federal Flood Insurance Program Extended Again to December 16

In September, the Office of Foreign Assets Control (the “OFAC”), part of the United States Treasury Department, eased restrictions on trade with Libya through two revised general licenses that were published under the Libyan sanctions program.  A general third license was issued in November.  Together, these new licenses permit a wide range of past and new transactions in Libya, including the placement of insurance and reinsurance, which are subject to certain requirements and limitations. …
Read More OFAC Eases Restrictions on Transactions in Libya