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

A criminal indictment recently unsealed in the United States District Court for the District of Columbia against an Iranian businessman who allegedly conspired to violate the U.S. embargo of Iran by funneling U.S.-origin goods to Iran through front companies in Turkey, highlights one of the biggest risks faced by U.S. exporters: You never know where your goods or technology will end up. …
Read More Client Advisory – Recent Government Enforcement Actions Regarding the Iranian Embargo Highlight the Hidden Risks of International Trade

AXA Seguros, S.A. De C.V. v Allianz Insurance plc (Allianz) and others [2011] EWHC 268 (Comm) concerned a claim for privilege in reports produced by an engineering firm in relation to damage to the Don Nogales highway in Mexico. AXA had insured a company which had responsibility for the Don Nogales highway. Allianz and others (the Reinsurers) reinsured AXA. The reinsurance policy only covered damage to highways constructed to “internationally acceptable standards“. …
Read More UK: Engineering Firm Reports Not Privileged

Costa Rica’s local insurance market soared by 17% in 2010 as premiums grew from US$633 million in 2009 to US$739 million last year, according to figures recently released by the Insurance Superintendency. The market continues to be dominated by the Instituto Nacional de Seguros (INS), but other players, including Panama’s ASSA Compañia de Seguros, have increased their presence. …
Read More Costa Rican Insurance Market Starts to Flourish