This updates our June 14 blog post.

The National Conference of Insurance Legislators (“NCOIL”) has proposed amendments to the Beneficiaries’ Bill of Rights Model Act relating to payment of life insurance proceeds to beneficiaries. …
Read More NCOIL Proposes Amendments to the Beneficiaries’ Bill of Rights Model Act relating to Payment of Life Insurance Benefits

In Zurich Insurance Company PLC v Hayward [2011] EWCA Civ 641 the Court of Appeal held that Zurich was entitled to bring new evidence of fraudulent behaviour by an individual who was injured at work despite the fact that issues as to his good faith had already been raised in a prior action. …
Read More UK: Court of Appeal Rules on Issue Res Judicata in the Context of a Fraudulently Exaggerated Personal Injury Claim

Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department recently published its latest Newsletter, Insurance & Reinsurance Review –  June 2011, which contains nine articles about various topics in the insurance and reinsurance industry. …
Read More Insurance & Reinsurance Review – June 2011

On June 13, 2011, Illinois Insurance Commissioner Michael T. McRaith became the first Director of the Federal Insurance Office (FIO).  The FIO was created by the Dodd-Frank financial reform legislation, which was instituted last year. …
Read More Illinois Insurance Commissioner McRaith Becomes First Director of FIO

HOUSE AND SENATE DEMOCRATS INTRODUCE MEDICARE BILL

As lawmakers continue negotiations on a federal spending reduction plan that will accompany a vote to raise the debt ceiling this summer, Democrats last week introduced legislation to rein in costs in the Medicare prescription drug program (Medicare Part D). …
Read More Healthcare Update: Democratic Lawmakers Introduce Medicare Bill; CMS Releases Mental Health Center Proposed Rule; HHS Unveils National Prevention Strategy – June 20, 2011

Transocean Ltd. said Friday that insurers of its sunken Deepwater Horizon drilling rig have asked a federal judge to decide if BP Plc and other owners of the Macondo well are entitled to any insurance coverage for the April 20, 2010 disaster. …
Read More Deepwater Horizon: Transocean’s Insurers Seek Federal Court Opinion on Payment to BP

A federal court recently denied a cedent’s motion to transfer a lawsuit commenced by its reinsurer from New York to Connecticut.  The cedent argued that the case should be transferred because the issues involved were related to similar lawsuits commenced by the cedent against other reinsurers in Connecticut, and because the action could have been brought in that forum. …
Read More Federal Court Rules that Reinsurance Dispute Should Not be Transferred from New York to Connecticut

Airmic (the UK Association of Insurance and Risk Managers in Industry and Commerce) has issued a research paper asserting that the remedy of avoidance ab initio for non-disclosure of material information is only appropriate if (i) the non-disclosure has been fraudulent; or (ii) the insurer would not have written the business on any terms had the information been disclosed. The paper provides that: “In simple terms, Airmic has the view that any remedy should be proportionate to the nature of the non-disclosure and the circumstances that gave rise to that non-disclosure“. …
Read More UK: Airmic Proposes Non-Disclosure/Misrepresentation Clause

In Janus Capital Group, Inc. and Janus Capital Management LLC v. First Derivative Traders, decided June 13, 2011, the Supreme Court held that Janus Capital Management LLC (JCM), a subsidiary of Janus Capital Group, Inc. (JCG) and investment advisor for JCG on a group of its mutual funds, cannot be held primarily liable in a private action by JCG shareholders for alleged false statements in a prospectus under Section 10(b) of the Securities Exchange Act of 1934 and SEC’s Rule 10b-5. …
Read More Client Advisory – Supreme Court Rules Mutual Fund Investment Advisor Not Liable for Securities Fraud in Private Securities Fraud Action

On Tuesday, June 14th, the Commodity Future Trading Commission (CFTC) announced that it would delay rules on certain derivatives rules for up to six months as they work to implement the Dodd-Frank financial reform law. …
Read More CFTC Delays Dodd-Frank Mandated Rules on Derivatives