The National Association of Insurance Commissioners (“NAIC”) has charged its Financial Condition Committee with investigating how insurers are using captives to transfer third party insurance risks in connection with state laws and regulations.  If the investigation reveals reasons for concern, the committee will consider recommendations to amend the relevant existing model NAIC laws or create a new model law. …
Read More NAIC Investigates Use of Captives

At the annual National Association of Professional Surplus Lines Offices, Ltd. (“NAPSLO”) convention, the surplus lines industry recently reported that it has seen an increase of 10-15 percent in submission volume over the last year.  Although the price of most insurance written by surplus lines insurers has not increased (other than for insurance written on catastrophe exposed accounts), the industry reported that terms and conditions of such insurance is improving. …
Read More Surplus Lines Market Reports Increase in Business

Please join the U.S. Reinsurance Under 40s Group for a happy hour this Wednesday, October 26, at St. Andrew’s Restaurant and Bar, located at 140 West 46 Street (between 6th and 7th Ave.).  The event will run from 5:30-8:30, and the Group has reserved a private area in the upstairs section of St. Andrew’s. …
Read More U.S. Reinsurance Under 40s Group to Host an Event This Wednesday

On 11 October 2011, the Financial Services Authority (FSA) published its final guidance on the selling of general insurance through price comparison websites. This followed an eight week consultation, which ended on 8 August 2011. …
Read More UK: FSA Publishes Final Guidance on the Selling of General Insurance through Price Comparison Websites

In the case of Harrison & ANOR v Black Horse [2011] EWCA Civ 1128 it was held that a lender’s failure to disclose to borrowers that it received commission for selling them payment protection insurance did not amount to unfairness under s.140A and s.140B Consumer Credit Act 1974 (the Act). …
Read More UK: Unfairness under the Consumer Credit Act 1974

The National Association of Insurance Commissioners (“NAIC”) issued a press release on October 12, 2011 announcing, among other things, amendment to the Annuity Disclosure Model Regulation (#245) (the “Model”), adopted by  a joint executive/plenary session.  The amendments are designed to improve disclosure and reduce consumer confusion regarding annuity purchases. …
Read More NAIC Amends Annuity Disclosure Model Regulation

This updates our March 24, 2010 blog posting.  The National Association of Insurance Commissioners (“NAIC”) issued a press release on October 12, 2011 announcing, among other things, adoption of a bulletin (the “Bulletin”) regarding stranger originated annuity (“STOA”) transactions. STOA transactions involve a producer and/or investor offering a third party a fee for the use of the individual’s identity as the annuitant in an annuity. …
Read More NAIC Adopts Bulletin on Stranger-Originated Annuities

In French v Groupama Insurance Company Ltd (Groupama) [2011] EWCA Civ 1119, the Court of Appeal found that a settlement offer made in a letter from Groupama to French dated 15 February 2007 did not comply with either the previous or current requirements of CPR Part 36 (a procedure allowing parties to make settlement offers which if not accepted have certain costs consequences should the principal sum awarded by the Court be higher or lower than the sum offered). …
Read More UK: Court of Appeal Decision on CPR Part 36 Offers

On October 17, 2011, the Federal Insurance Office (FIO) requested comments on its study on how to modernize and improve the system of insurance regulation in the United States.  FIO is required to submit the study to Congress in January 2012.  Click here for the notice published by FIO in the Federal Register. …
Read More FIO Seeks Comments on Modernization and Improvement of US Insurance Regulation

Earlier this month, the U.S. House and U.S. Senate introduced legislation that would defer tax deductions for insurers that cede large portions of their U.S. premiums to offshore affiliates. …
Read More The House and Senate Introduce Bills Deferring Tax Deductions for Foreign Reinsurers