In the recent case of Sharon’s Bakery (Europe) Ltd v (1) AXA Insurance UK PLC (2) Aviva Insurance Ltd [2011] EWHC 210 (Comm), the High Court was asked to consider whether the defendant insurers were entitled to avoid an insurance policy on the grounds of material non-disclosure by the claimant, Sharon’s Bakery, and whether all benefit under the policy had been forfeited due to the use of fraudulent means or devices to promote the claim. …
Read More UK: High Court Considers Whether False Invoices Used to Obtain Financing Entitles Insurer to Avoid Policy

The National Association of Insurance Commissioners (“NAIC”) recently sent a letter to U.S. Treasury Secretary, Timothy Geithner, declaring that state regulators are being denied an opportunity to weigh in on decisions made by the Financial Stability Oversight Council (the “Council”) created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) that will likely affect large insurers. …
Read More NAIC Expresses Concern Regarding Decisions Affecting Insurers Made By Financial Stability Oversight Council

On 17 February, Cotswold Geotechnical Holding (Cotswold) became the first company to be convicted and sentenced under the Corporate Manslaughter and Corporate Homicide Act 2007 (the Act). It was found guilty of corporate manslaughter and fined £385,000. Cotswold was prosecuted following an accident involving one of its employees, who died whilst investigating soil conditions in an unsupported trench which then collapsed on him. …
Read More First UK Company Convicted Under Corporate Manslaughter and Corporate Manslaughter Act

In Brent LBC and others (Harrow LBC) v Risk Management Partners Limited [2011] UKSC 7, the Supreme Court unanimously held that a local authority was entitled to enter into contracts of insurance with a mutual insurer without first putting those contracts out to tender in accordance with the Public Contracts Regulations 2006 (the Regulations). For the full facts of this dispute, please read our earlier blogs “here” and “here“. …
Read More UK: Exemption Takes Mutual Insurance Arrangements Outside the Public Contracts Regulations 2006

On February 17, 2011, the U.S. Senate approved legislation that would repeal the expanded IRS Form 1099 information-reporting requirements imposed by healthcare reform law.  Section 9006 of the Patient Protection and Affordable Care Act (“PPACA”) currently requires that certain payments of $600 or more to corporations be disclosed on the IRS Form 1099 starting in 2012. …
Read More U.S. Senate Approves Repeal of 1099 Reporting Requirement

Zurich Financial Services Group (“Zurich”) announced on February 22, 2011 that it plans to buy a majority stake in the insurance operations of Banco Santander SA (“Santander”) in Latin America for $1.67 billion. …
Read More Banco Santander and Zurich to Form South American Joint Venture

EAPD is sponsoring today’s ARC Congress in London. EAPD partner, Mark Everiss, who is a Director of ARC, has just chaired an interesting discussion on UK Asbestos/EL Trigger Issues/ ELTO by a prestigious panel of experts – EAPD partner Richard Hopley, Professor Duncan Geddes of Royal Brompton Hospital, Ian Willett of MMI, Colin Wynter QC of Devereux Chambers and Helen Hatchek of RSA. …
Read More ARC Congress, London, 23 February 2011

Connecticut lawmakers are considering plans to require public hearings when health insurers raise rates.  Under the current law, the Connecticut Insurance Commissioner may hold hearings at his discretion.  The new law, if adopted, however, will require public hearings in certain cases to give the state Attorney General and consumer advocates the opportunity to be heard and call witnesses. …
Read More Connecticut Legislation Would Require Public Hearings for Rate Increases

On February 11, eight Democratic Senators sent a letter to the Department of Justice (DOJ) and the Federal Trade Commission (FTC), asking the two entities to work together on antitrust guidance for the Accountable Care Organizations (ACOs) that will soon be created under the new healthcare law, the Patient Protection and Affordable Care Act (PPACA). …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – February 22, 2011