Japan is planning to raise the nuclear alert level at the Fukushima Daiichi power plant to a maximum seven (“Major Event”) on the International Nuclear and Radiological Event Scale (INES), putting this emergency on a par with the 1986 Chernobyl disaster. …
Read More Japan Raises Nuclear Alert Level Not Seen Since Chernobyl

In an open letter to European Commissioner Michel Barnier dated 29 March 2011, leading organisations within the European insurance and reinsurance industry have expressed concern with the development of the Solvency II process. …
Read More EU: Industry Joint Letter Reacts to Solvency II Proposals With Concern

Plaintiffs Trenwick America Reinsurance Corporation and Unum Life Insurance Company of America purchased retrocessional coverage from defendant IRC Re Limited.  The retrocession agreements did not contain follow the fortunes or follow the settlements clauses, and after a dispute arose under the agreements, the parties litigated (among other things) whether the follow the fortunes or follow the settlements doctrine applied. …
Read More Relying Upon Testimony of Expert Witnesses, Massachusetts Federal Court Finds That Follow the Fortunes Governs Reinsurance Relationship, Even Where Agreements are Silent

Earlier this month, Alterra Capital Holdings Ltd. and Stone Point Capital LLC announced that they formed a sidecar named New Point IV, both agreeing to commit up to $100 million. According to the press release, New Point IV was created due to “the recent series of global catastrophic events . . reducing the capital supporting the international property catastrophe reinsurance market . . . .” …
Read More Formation of Alterra/Stone Point Side Car May Mark Start of a Trend

Unlike other several other states as we reported here, New York has enacted legislation as part of its budget bill that does not authorize the state to enter into the Surplus Lines Insurance Multi-State Compliance Compact (“SLIMPACT”), or any other surplus lines tax allocation compact.  SLIMPACT is an interstate compact that is designed to, among other things, allow for the adoption of uniform standards across participating compact states and uniform tax allocation formulas on multi-state risks. …
Read More New York Rejects SLIMPACT

The Association of British Insurers has announced that it has agreed with the UK government that the moratorium on insurers using predictive genetic test results for any type of insurance other than life insurance over £500,000 be extended to 2017. …
Read More UK: ABI Extends Moratorium on Use of Predictive Genetic Test Results

A Massachusetts federal judge has found that violations of a fee-sharing agreement between a lawyer and his former firm do not constitute legal services, and therefore do not fall within the scope of coverage afforded by the lawyer’s professional malpractice policy.
Read More Fee Dispute Between Lawyer and Former Firm Not Covered by E&O Policy

Over the years, swimming pools have given rise to more than their share of reported decisions.  One of the most recent, and relevant to the insurance industry, is the US Court of Appeals for the Fifth Circuit’s recent decision affirming a finding that a contractor’s faulty work in installing a swimming pool may be deemed an “occurrence” for purposes of general liability insurance coverage. …
Read More Faulty Work Deemed An “Occurrence” Under CGL Policy

The Seattle Times recently reported that a settlement “in excess of $200 million” has been reached in a case involving the 2008 demise of the banking giant Washington Mutual.  The suit, filed against a number of WaMu’s former directors and officers and a bevy of Wall Street investment banks, concerns WaMu’s allegedly slapdash lending practices and misleading public statements about the bank’s financial health. …
Read More Tentative Settlement Worth a Reported $200+ Million Reached in WaMu Securities Class Action

In a consultation launched on 14 December 2010, HM Treasury outlined proposals for the development of “Simple Financial Products”(click here for a copy of the consultation), in particular payment protection insurance (PPI) products. …
Read More UK: Association of British Insurers Tentatively Backs Current HM Treasury Proposals for Simple Payment Protection Insurance Products