A hydrofracking well exploded near Leroy Township, Pennsylvania on Tuesday, spilling chemically treated water into a nearby creek that feeds the Susquehanna River and prompting the evacuation of certain residents.  The incident occurred while a crew from Chesapeake Energy Corporation was in the midst of “fracking” the well, a method by which one injects a mixture of water, sand and chemicals into dense rock at high pressures in order to release oil and gas.  The cause of the spill was reportedly due to equipment failure. …
Read More Breaking News: Hydrofracking-Related Spill in Pennsylvania

On April 18, 2011, the Superintendent of the New York Insurance Department promulgated the twelfth amendment to Regulation 41 (the “Amendment”).  Pursuant to the Amendment, excess lines insurers obtaining eligibility in New York on or after January 1, 2011 must maintain surplus to policyholders of at least $45,000,000, instead of $15,000,000. …
Read More New York Officially Increases Minimum Surplus Requirement for Excess Lines Insurers

This updates our April 14, 2011 blog posting.

Michigan Governor Rick Snyder has announced that Kevin Clinton has been named as the head of the Office of Financial and Insurance Regulation (“OFIR”).  Gov. Snyder remarked that Mr. Clinton, in addition to his responsibility for consumer protection, will lead the effort to make Michigan a more favorable regulatory environment for the insurance industry by eliminating burdensome regulations. …
Read More Kevin Clinton Named Michigan Insurance Commissioner

The Republic of Iraq moved to compel arbitration of its lawsuit against BNP Paribas pursuant to an arbitration clause in a contract between the United Nations and BNP.  The suit sought to recover damages stemming from BNP’s involvement in the alleged corruption of the United Nations Oil-for-Food program.  BNP cross-moved to enjoin arbitration. …
Read More New York Federal Court Finds That The Republic of Iraq Cannot Arbitrate Claims Related to United Nations “Oil-for-Food” Scandal Based Upon Third-Party Beneficiary Status

The U.S. Supreme Court justices on Tuesday questioned whether a common law public nuisance suit against major greenhouse gas emitters was treading on territory usually, and perhaps more fittingly, handled by the U.S. Environmental Protection Agency (EPA). …
Read More U.S. Supreme Court Takes Up Climate Change Public Nuisance Suit

Recent global catastrophes are likely to erase close to 25% of first quarter profits for reinsurers with exposure to the Japan and New Zealand earthquakes as well as the Australia floods, a recent MarketWatch article reported. 
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Read More Japan Earthquake and Other Catastrophes Likely to Erase Close to 25% of Profit for Reinsurers

Indiana recently enacted HB 1486 (enacted as PL 11, 2011, the “Act”), which, effective April 6, 2011, grants the Indiana Insurance Commissioner (the “Commissioner”) discretion to reduce the amount of collateral required for domestic insurers to receive full financial statement credit for reinsurance ceded to assuming insurers that are not licensed or accredited by, or for an alien company entered through, Indiana or a state with similar standards regarding credit for reinsurance. …
Read More Indiana Joins New York, New Jersey and Florida in Relaxing Credit for Reinsurance Collateral Requirements

Last week, the National Association of Insurance Commissioners (“NAIC”) announced that it has changed the name of its New York office (the “NY Office”) from the “Securities Valuation Office” to the “Capital Markets and Investment Analysis Office.”  The name change is in connection with changes made to the responsibilities of the NY Office. …
Read More NAIC Changes Name and Scope of New York Office

FY 2012 BUDGET NEWS:

Once Congress and the White House came to an agreement on current Fiscal Year (FY) 2011 spending and averted a looming government shutdown, attention turned to the FY 2012 budget and the issue of deficit reduction. …
Read More Healthcare Update: FY 2012 Budget Details; New HHS Initiative Launches; President Signs 1099 Repeal; Providers Express Tepid Reactions to ACO Rule

New York Attorney General Eric T. Schneiderman said Monday he would sue the federal government if it didn’t immediately conduct a full environmental review of proposed hydraulic fracturing (“hydrofracking”) regulations for an area that includes the New York City watershed. …
Read More New York AG Threatens to Sue Federal Government Over Hydrofracking