Suffolk Federal Credit Union (“SFCU”) brought an action against Cumis Insurance Society to recover certain losses arising under a fidelity bond.  During discovery, SFCU served interrogatories, that included a request that Cumis disclose the identity of any reinsurance agreement that might indemnify Cumis for the losses at issue. …
Read More Federal Court Orders Insurer to Produce Reinsurance Information, Despite Acknowledging Split Among Courts on the Issue

The Financial Services Authority (the FSA) has confirmed in its Final Notice dated 15 December 2010 that Barry Williams, a director at Surety Guarantee Consultants Ltd (SGC), has been fined £25,000 and banned from working in regulated financial services. …
Read More UK: Director of Specialist Underwriters Banned for Turning a Blind Eye to Fraud

On January 6, 2011, New Jersey Governor Chris Christie signed legislation on the Interstate Insurance Product Regulation Compact (the “Compact”).  With the passage of this legislation, New Jersey becomes a member of the national commission that develops uniform standards and consumer protections for asset-based insurance products (e.g., life insurance, annuities, disability income and long-term care insurance).  The Compact also establishes a clearinghouse for review of these product filings. …
Read More New Jersey Joins the Interstate Insurance Product Regulation Compact

In late December, the Centers for Medicare and Medicaid Services (CMS) issued a number of announcements. …
Read More Healthcare News From Capitol Hill and The Department of Health and Human Services – January 10, 2011

The IRS delayed application of the nondiscrimination rules under Internal Revenue Code section 105(h) to fully-insured group health plans. This IRS notice is welcome relief to employers who lacked any substantive guidance on how to structure their group health plans and other arrangements to comply with these rules. …
Read More The IRS Delivers Welcome Relief to Fully Insured Group Health Plans by Delaying Affordable Care Act Nondiscrimination Rules

As expected, New York Governor Andrew Cuomo announced during his State of the State address plans to merge the Insurance Department with the Banking Department and Consumer Protection Board in order to create a new Department of Financial Regulation.  Governor Cuomo stated that the merger is necessary to properly regulate modern financial services organizations and the “primary mission of this new agency will be to stand up for consumers, protect them against predatory lending and unlawful foreclosure practices, and provide access to good, honest and capable financial services at competitive rates.” …
Read More UPDATE: New York Governor Formally Announces Plan To Merge Insurance Department with Banking Department

According to reports, it is anticipated that incoming New York Governor Andrew Cuomo will announce during his State of the State Address tomorrow, January 5, 2011, plans to merge the Insurance Department and Banking Department into a single agency in an effort to reduce costs and improve efficiency.  Such a merger would require approval from the New York State Legislature before it would become effective. …
Read More BREAKING NEWS: New York Governor To Propose Merger of Banking and Insurance Departments