In New Cap Reinsurance Corporation Ltd & Anr v AE Grant & Ors, the Court of Appeal has upheld a first instance decision that section 426 of the Insolvency Act (IA) can be used to enforce a foreign monetary judgment in insolvency proceedings. However, the Court acknowledged that where there exists a statutory framework for the enforcement of foreign judgments, in this case enforcement pursuant to the Foreign Judgments (Reciprocal Enforcement) Act 1933 (the 1933 Act), then enforcement under s.426 of the IA must follow the requirements of the 1933 Act. …
Read More UK: Court of Appeal Upholds that Assistance can be Given to Australian Court

Recently, the U.S. Department of Health and Human Services (“HHS”) rejected North Dakota’s request for a waiver of the Patient Protection and Affordable Care Act (PPACA) requirement that individual health insurance plan issuers spend at least 80% of premiums on medical care or quality improvements.  As we previously reported, under the PPACA, the medical loss ratio (MLR) requirement is 80% for individual and small group plans and 85% for large group plans. …
Read More North Dakota’s Request for Medical Loss Ratio Waiver Rejected; Kentucky’s and Iowa’s Waiver Requests Approved

In the recent decision of Meritz Fire & Marine Insurance Co Ltd v Jan De Nul Nv & Anor [2011] EWCA Civ 827, the Court of Appeal dismissed the appeal by Meritz of the earlier High Court’s decision, previously reported here, that Meritz was liable under advance payment guarantees (APGs) it had issued in respect of three shipbuilding contracts (Contracts) to the respondent Buyers, despite the fact that the Contracts had been novated to a new company. …
Read More UK: Court of Appeal Considers the Effect of a Novation of a Contract on Advance Payment Guarantees

In PT Thiess Contractors Indonesia v PT Kaltim Prima Coal and another [2011] EWHC 1842, the Commercial Court refused to grant a stay where arbitration proceedings were ongoing in relation to disputes arising out of a related and overlapping contract. …
Read More UK: Commercial Court Rules on Competing Dispute Resolution Clauses

The litigation in England concerning the validity of the “flip” provisions in the Lehman credit default swap transactions, under which the priority changed from swap counterparty (ie Lehman) priority to noteholder priority on the insolvency of the Lehman entities (litigation which began under the title Perpetual Trustee Company Limited v BNY Corporate Trustee Services Limited), has finally come to an end with a Supreme Court decision under the title Belmont Park Investment PTY Limited v BNY Corporate Trustees Services Limited and Lehman Brothers Special Financing Inc (2011 UKSC 38). …
Read More UK: Supreme Court Decision on the Lehman Credit Default Swap “Flip” Provisions

The Competition Directorate General of the European Commission (the ‘Commission’) has issued a tender for a third party contractor to undertake a wide-ranging study into co-reinsurance pools and ad hoc co-reinsurance agreements on the subscriptions market within the EU. …
Read More EU: European Commission to Monitor Co-Reinsurance Practices

DEBT CEILING CRISIS AVERTED – IMPACT ON MEDICARE PROVIDERS

On the evening of July 31, President Obama announced that he and congressional leaders from both parties had reached a deal on a debt reduction/debt ceiling increase package, paving the way for legislative action to be completed before the August 2 default deadline. …
Read More Healthcare Update: Debt Ceiling Legislation’s Impact on Medicare; CMS Releases Final Inpatient Hospital Rule – August 8, 2011

On July 28, 2011, the U.S. House of Representatives Subcommittee on Insurance, Housing and Community Opportunity (subcommittee of the Committee on Financial Services) held a hearing entitled “Insurance Oversight: Policy Implications for U.S. Consumers, Businesses and Jobs.”  Committee members heard from state regulators, as well as various industry executives, a consumer advocate and others, regarding topics spanning from systemic risk in the insurance sector to reform in the producer licensing system.
Read More House Committee Holds Hearing: “Insurance Oversight: Policy Implications for U.S. Consumers, Businesses and Jobs”

Florida Insurance Commissioner Kevin McCarty (“McCarty”) said this week that he intends to phase in the expected significant rate increases for sinkhole coverage.  As previously reported here, sinkhole coverage was a significant component of Florida recent property insurance reform legislation.  Part of this reform was to lift a cap on rates charged by Citizens Property Insurance Company, Florida’s state-sponsored insurer of last resort. …
Read More Florida Insurance Commissioner to Phase in Rate Increases for Sinkhole Coverage