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

In The Seashell of Lisson Grove Ltd & Ors v Aviva Insurance & Ors [2011] EWHC 1761 (Comm), Mr Justice Teare decided three preliminary issues in relation to the construction of clauses in property insurance contracts which purported to ameliorate the effects of breaches of warranty and misrepresentations and non-disclosures. Teare J found for the insured on each issue, as set out below. …
Read More UK: High Court Upholds Non-invalidation Clauses in Relation to Breaches of Warranty in Insurance Contracts

Micoperi SrL (Micoperi) v. The Shipowners’ Mutual Protection & Indemnity Association (Luxembourg) (the Club) concerned an appeal by Micoperi under section 69 of the Arbitration Act 1996 (AA) that the arbitrators in their Partial Final Award in an arbitration between Micoperi and the Club had made an error of law. …
Read More UK: High Court Rejects Appeal Concerning Alleged Arbitrators’ Error of Law

The next U.S. Under 40s Group Event – Lloyd’s Insurance Market to the World with Hank Watkins, President of Lloyd’s America – will take place on Wednesday.  The event, which is sponsored by Towers Watson, will take place at their office in midtown New York, starting at 6:00 pm. …
Read More U.S. Under 40s Event this Wednesday – Lloyd’s Insurance Market to the World presented by Hank Watkins( President of Lloyd’s America)

On October 26, 2011, the United States Securities and Exchange Commission (“SEC”) adopted final rules implementing provisions of the Dodd-Frank Act requiring investment advisers that are registered with the SEC that advise one or more private funds and manage at least $150 million in private fund assets to file Form PF with the SEC. …
Read More SEC Issues Final Rules on Form PF Reporting Requirements of Investment Advisors