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

Governor Rick Perry announced the appointment of Eleanor Kitzman as the Texas Commissioner of  Insurance, effective August 15, 2011.  Ms. Kitzman has most recently served as the Executive Director of the South Carolina Budget and Control Board and was a past director of the South Carolina Department of Insurance. …
Read More Eleanor Kitzman Appointed as Texas Insurance Commissioner

Sony insurers are engaged in litigation in New York state court to determine Sony entities’ claims for insurance coverage with respect to lawsuits, claims and potential attorney general actions arising out of the cyber-attacks earlier this year on the PlayStation Network (“PSN”), Sony Online Entertainment Network (“SOE”) and Sony Pictures Network, which allegedly resulted in unauthorized access to and alleged theft of personal identification and financial information of millions of customers. …
Read More PlayStation Hack – Sony Seeks Coverage Under Its CGL Policies

The China Insurance Regulatory Commission Shanghai Bureau recently announced strict regulations on sales of variable annuity (VA) insurance in Shanghai. According to the regulations, insurers are required to submit the following written materials at least 10 days before launching their VA products: sample insurance contracts, policies and promotional materials; insurance application forms; details of their distribution channels and documents containing risk assessments signed by the relevant client. …
Read More China: Shanghai Announced Regulations on Sales of Variable Annuity insurance

The Financial Supervisory Commission of Taiwan is considering amending the present investment regulations to allow insurers to invest in yuan-denominated securities and bonds issued in Hong Kong, a further sign of improving cross-straits ties. …
Read More Hong Kong: Taiwan Insurers May Buy Yuan Assets in Hong Kong

Bank shares have been popular among Chinese insurers due to their low valuations and stable performance. In the second quarter of 2011, Ping An Insurance (Group) Company of China, Ltd (Ping An) increased its stake in Industrial and Commercial Bank of China Ltd. (ICBC) from 188mn to 1.798bn shares, and The People’s Insurance Company of China (Hong Kong) Ltd. (PICC) raised its holdings in Bank of China from 63.7mn to 197mn shares in 2011. …
Read More China: Insurers Continue to Raise Holdings in Banks