On December 8, 2010, the United States House of Representatives passed Senate Bill 3987, the Red Flag Program Clarification Act of 2010, to exempt lawyers, doctors, accountants, and other professionals from the Red Flags* Rule.  Having been approved by both Houses of Congress, the Act requires only President Obama’s signature to become law. …
Read More Congress Passes Act to Exclude Attorneys, Other Professionals From Reach of Red Flags Rule

In the wake of the worldwide financial crisis and election of the UK’s coalition govrnment, HM Treasury proposed a wholesale overhaul of the financial regulatory system in the UK in a consultation document issued in July 2010 entitled “A new approach to financial regulation: judgement, focus and stability“. …
Read More UK: Treasury Publishes Responses to its Consultation on Reforming the Financial Regulatory System

Launched by Prince Charles in 2007, ClimateWise is global collaboration of leading underwriters and brokers focused on reducing the risks of climate change.  For a complete list of member insurance companies, click here. …
Read More Prince Charles’ ClimateWise Finds Insurers Are Increasing Investment in Climate-Friendly Businesses

The Massachusetts Appeals Court recently ruled that the state’s statute governing insurance companies’ claims settlement practices applies to captive insurers.  See Lemos v. Electrolux North America, Inc., et al., No. 09-P-943 (Mass. App. Dec. 2, 2010). …
Read More Massachusetts Appeals Court Holds That Bad Faith Statute Applies To Captive Insurers

We have previously reported here on the Equitable Life (Payments) Bill, which has been subject to scrutiny in the UK Parliament. The Bill is intended to give the Treasury statutory authority to make payments to eligible former and current Equitable Life Assurance Society (Equitable Life) policyholders who have been adversely affected by the maladministration of Government regulatory bodies in the regulation of Equitable Life prior to December 2001. …
Read More UK: Equitable Life (Payments) Bill – Update

The High Court has given another lengthy ruling on issues arising in the administration of Lehman Brothers International (Europe) (LBIE). This ruling addressed general principles on the issue of title to securities (equities and fixed income securities) held by LBIE for affiliates in unsegregated house depot accounts at the point of collapse. …
Read More UK: Lehman Ruling on Title to Securities Acquired for Affiliates

In the case of Noble Denton Middle East and Another v Noble Denton International Limited [2010] EWHC 2574, Mr Justice Burton was asked to decide two points. First, whether an arbitrator should be appointed by virtue of an application made under s. 18 of the Arbitration Act 1996; and, second, whether those arbitration proceedings should be stayed in favour of Texas proceedings. …
Read More UK: High Court Refuses Stay in Favour of Arguable Arbitration Clause

This updates our June 1, 2010 posting.  The Texas Department of Insurance (“TDI”) has officially banned the use of discretionary clauses in insurance contracts with an order issued on December 3, 2010 (the “Order”).  The ban is the result of a petition filed by the Texas Office of Public Insurance Counsel (OPIC) on October 28, 2009 requesting the ban.  Subsequent to the petition, the TDI held a public hearing on July 12, 2010. …
Read More UPDATE: Texas Bans Use Of Discretionary Clauses In Insurance Contracts

This updates our November 1, 2010 posting.  On December 6, 2010, the New Jersey Senate Commerce Committee passed S.168 (the “Bill”) by a vote of 4-0, which would permit a captive insurance market to exist in New Jersey.  The Bill is based on Vermont’s captive insurance bill, which is viewed as the state model with the best design for the captive insurance market so far. …
Read More New Jersey Senate Makes Progress On Captive Insurance Bill

Lawmakers returned to Washington last week to continue the lame-duck session of the 111th Congress, clearing a short-term solution to the pending Medicare cuts for physicians. Meanwhile, the President’s bipartisan fiscal commission finalized and released a report aimed at greatly reducing the federal deficit, though the details of the plan proved to be unpopular among those affected by the corresponding spending cuts. …
Read More Healthcare Update: Healthcare News From Capitol Hill and The Department of Health and Human Services – December 6, 2010