On 25 June 2010 (“Effective Date“), the Hong Kong Securities and Futures Commission (“SFC“) promulgated the SFC Handbook for Unit Trusts and Mutual Funds, Investment-Linked Assurance Schemes and Unlisted Structured Investment Products (“SFC Handbook“) under which all SFC-authorised funds and investment-linked assurance schemes are required to provide investors with a Product Key Facts Statement (“Product KFS“) and an offering document that satisfy a number of disclosure requirements as set out in the SFC Handbook. …
Read More Hong Kong: SFC Warns Surveillance on the KFS and Revised Offering Documents

Thomas B. Leonardi, Commissioner of the Connecticut Insurance Department, was elected as the secretary of the National Association of Insurance Commissioner’s (“NAIC”) Northeast Zone during the NAIC’s Fall 2011 meeting.  As part of this position, Commissioner Leonardi will also serve on the NAIC’s Executive Committee. …
Read More Connecticut Insurance Commissioner Elected Secretary of the NAIC’s Northeast Zone and Will Serve on the NAIC’s Executive Committee

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