Earlier this month, Representatives Charles Boustany (R-La.) and John Larson (D-CT) introduced the Medical FSA Improvement Act of 2011 (the “Act”) in the House of Representatives.  The Act aims at increasing participation in medical flexible spending accounts (“FSAs”). …
Read More House Representatives Aim at Abolishing “Use It or Lose It” Rule for Flexible Spending Accounts

This updates our May 13, 2010 blog posting.  Last month, the New Jersey legislature passed the “Reinsurance and Surplus Lines Stimulus and Enhancement Act” (A2670, the “Act”).  The Act amends state law to permit surplus lines insurers domiciled in New Jersey to write surplus lines insurance in the state.  This would make New Jersey the second state in the U.S. after Illinois to allow its domestic surplus lines companies to write insurance in the home state’s surplus lines market. …
Read More New Jersey Passes Legislation to Ease Restrictions on Surplus Lines and Credit for Reinsurance

In BNY Corporate Trustee Services Limited v Eurosail–UK 2007–3BL Plc and others, the Court of Appeal ruled on the interpretation of the so-called “balance-sheet” test of insolvency under section 123(2) of the Insolvency Act 1986. This is essentially that a company is deemed unable to pay its debts if the value of its assets is less than the amount of its liabilities, taking into account its contingent and prospective liabilities. …
Read More UK: Court of Appeal Case on the “Balance-Sheet” Test of Insolvency

Panama’s insurance market posted growth of 8.5% in 2010, on the back of 9.5% growth in 2009, according to the latest figures from the regulator, the Insurance and Reinsurance Superintendency. It is now the largest market in Central America, with premium income of US$919 million last year. …
Read More Panama Insurance Market Records Strong 2010, Positive Outlook

Earlier this month, Florida State Senator John Thrasher (R-Jacksonville) filed Senate Bill 1592 containing proposed reforms to Florida insurer bad faith law. …
Read More Florida Developments – Significant Bad Faith Reforms Proposed in Florida

Nikolaus von Bomhard, chief executive of Munich Re AG the world’s largest reinsurer, views insurance protection against the risk of nuclear incidents as unaffordable for insurers and power plant operators, according to a recent interview he gave in the German national Sunday newspaper Welt am Sonntag. …
Read More Nuclear Risk Too Expensive To Underwrite?

As a bill to reform the nation’s medical liability system advances in the House, the Congressional Budget Office (CBO) has determined that enacting such legislation would reduce national healthcare spending by an estimated 0.4 percent. …
Read More Healthcare Update: Medical Liability Reform Legislation; Community Health Center Cuts; Hhs Hospice Cap Rulings