In State Farm Florida Insurance Co. v. Seville Place Condominium Association, 2011 Fla. App. Lexis 11314 (Fla. 3d DCA July 20, 2011) Florida’s Third District Court of Appeal granted motions for rehearing and rehearing en banc and withdrew its prior October 14, 2009 opinion in the same case.   …
Read More Florida Appellate Court Substitutes Opinion Concerning Premature Bad Faith Claims

On July 26, 2011, the Financial Stability Oversight Council (“FSOC”) released its first annual report, as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).  In the report, FSOC describes the current state of the U.S. financial system and includes recommendations for additional steps that should be taken to strengthen the financial system. …
Read More FSOC Releases its First Annual Report as Mandated Under Dodd-Frank

On July 26, 2011, the U.S. Senate Committee on Banking, Housing and Urban Affairs convened to consider the nomination of Roy Woodall, former Commissioner of the Kentucky Insurance Department, to serve a six-year term as a voting member of the Financial Stability Oversight Council (“FSOC”). …
Read More Senate Committee Hearing on Nomination of Roy Woodall to FSOC

James Fellus commenced arbitration against his former employer, Sterne, Agee & Leach, Inc. (“SAL”), seeking damages for wrongful termination.  At the close of the arbitration hearing, Fellus submitted an exhibit related to one of the central issues before the panel.  SAL objected to the use of this exhibit, but was overruled.  The arbitrators ultimately issued an award in Fellus’ favor. …
Read More New York Federal Court Finds That Panel’s Refusal to Hear Certain Evidence Does Not Justify Vacating Arbitration Award

International Capital & Management Company arbitrated a dispute against Bear Stearns before the Financial Industry Regulatory Authority (“FINRA”).  International Capital ultimately withdrew its claims in the arbitration, after which the FINRA panel ordered it to pay more than $300,000 of Bear Stearns’ attorneys’ fees related to the withdrawn claims.  International Capital moved to vacate this portion of the panel’s award. …
Read More Arbitrators’ Award of Attorneys’ Fees Upheld

On 27 July 2011, the Economic and Monetary Affairs Committee of the European Parliament (the Committee) proposed in a draft report on Omnibus II (click here for a copy) that the Solvency II regime be introduced through a process of “phasing-in”, with (re)insurance undertakings not being required to comply in full until 1 January 2014. …
Read More UK: Solvency II Delay Likely

This updates our June 22, 2011 blog posting.

At its July 15, 2011 meeting, the National Conference of Insurance Legislators (“NCOIL”) Life Insurance and Financial Planning Committee resolved to pursue amendments to the Beneficiaries’ Bill of Rights Model Act relating to payment of life insurance proceeds to beneficiaries. …
Read More NCOIL Resolves to Address Unclaimed Property Issue

On May 23, 2011, the Securities and Exchange Commission (the “SEC”) and the Commodity Futures Trading Commission (the “CFTC”) proposed joint rules in Federal Register 33-9204 (click here for a copy) that define the terms swap, security-based swap, security-based swap agreement, and mixed swaps.  On July 22, 2011, Susan E. Voss, Iowa Insurance Commissioner and President of the National Association of Insurance Commissioners (the “NAIC”) and Therese M. Vaughn, CEO of the NAIC penned a comment letter to the SEC and CFTC that urged them to make several changes to the proposed rules (the “NAIC Letter”). …
Read More Insurance Product Test in Proposed Rules by the Securities and Exchange Commission and the Commodity Futures Trading Commission May Place Certain Insurance Products under Federal Oversight

In a 77-page decision handed down this morning, the U.S. Court of Appeals for the Second Circuit vacated the convictions of five former insurance executives whom prosecutors had alleged engaged in a fraudulent reinsurance transaction.  A new trial has been ordered.  United States v. Ferguson, et al., No. 08-6211-cr (L) (2d Cir. Aug. 1, 2011).  A copy of the court’s decision is available here. …
Read More Second Circuit Throws Out Criminal Convictions Stemming From Reinsurance Transactions