The Massachusetts Division of Insurance (“MDOI”) recently amended its surplus lines laws to allow for the approval of alien unauthorized insurers in the state. Previously, Massachusetts required that alien surplus lines insurers maintain a trusteed surplus in the US of $20 million and file financial information on an annual basis following US accounting principles which effectively made obtaining surplus lines eligibility in the state prohibitive for alien insurers.
Read More Massachusetts Amends Laws to Permit Alien Surplus Lines Insurers
UPDATE: California Surplus Lines Reforms Signed Into Law
By Troutman Pepper Locke on
Posted in Excess and Surplus Lines, Regulatory
This updates our September 1, 2010 posting. On September 27, 2010, California Governor Arnold Schwarzenegger signed into law AB 1708, which will have a significant impact on surplus lines insurers by amending Section 1765.1 of the California Insurance Code. …
Read More UPDATE: California Surplus Lines Reforms Signed Into Law
Federal Court Denies Insured’s Motion to Vacate Arbitration Award: Finds That Reinsurer Was Not Indispensable Party to Dispute, Arbitrators Had Authority to Award Attorneys’ Fees, and Manifest Disregard of the Law is No Longer Viable
By Troutman Pepper Locke on
Plaintiffs sued their insurer, Northbrook Indemnity Company, which removed the case to federal court and moved to compel arbitration. A Florida district court granted Northbrook’s motion to compel, and the dispute proceeded to arbitration. …
Read More Federal Court Denies Insured’s Motion to Vacate Arbitration Award: Finds That Reinsurer Was Not Indispensable Party to Dispute, Arbitrators Had Authority to Award Attorneys’ Fees, and Manifest Disregard of the Law is No Longer Viable
The BP Disaster: The Flood of Oil has Stopped, Insurance Claims have Just Begun
By Troutman Pepper Locke on
(This post is an excerpt from the full article here, originally published by Bloomberg Finance L.P. in the Vol. 4, No. 9 edition of the Bloomberg Law Reports—Insurance Law. Reprinted with permission.)
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The BP disaster (also referred to as the Deepwater Horizon disaster or the Macondo blowout) in the Gulf of Mexico is now considered to be the largest accidental oil spill in history. On April 20, 2010, an explosion and resulting fire at the Deepwater Horizon semi-submersible oil drilling platform, the cause of which is still uncertain as investigations continue, killed 11 platform workers and injured 17 others out of the 126 crew members on board the platform at the time. …
Read More The BP Disaster: The Flood of Oil has Stopped, Insurance Claims have Just Begun
UK: Proposed Special Administration Regime For Investment Banks
HM Treasury has issued a consultation paper on proposals for a special administration regime for investment banks which it hopes will lead to less disruption in financial markets and simplify the process of returning assets and money to clients and creditors of a failing bank. …
Read More UK: Proposed Special Administration Regime For Investment Banks
New York Considers Catastrophe Pool
By Troutman Pepper Locke on
The New York State Insurance Department (“NYID”) issued a news release on September 22, 2010 (the “News Release”) announcing proposed measurers aimed at ensuring the availability and affordability of homeowners insurance in coastal areas of New York. Such proposals include the creation of a catastrophe pool to be funded by insurer assessments and used to help cover the cost of hurricanes and other catastrophes. …
Read More New York Considers Catastrophe Pool
OFAC Gives Presentation on Regulation of Business – Important Considerations for Insurance and Reinsurance
On September 23, 2010, David Brummond, Senior Sanctions Advisor for Insurance at the Office of Foreign Assets Control (“OFAC”) in the U.S. Treasury Department, gave a presentation at the HR Litigation Conference on International Economic Sanctions on “Regulation of Business – Important Considerations for Insurance and Reinsurance.” Mr. Brummond’s presentation gave an overview of the role of OFAC with respect to insurance industry related activities. …
Read More OFAC Gives Presentation on Regulation of Business – Important Considerations for Insurance and Reinsurance
Healthcare News from Capitol Hill and the Department of Health and Human Services – September 27, 2010
By Troutman Pepper Locke on
Healthcare matters remained highly relevant throughout the month of September, as comments were released on important home health regulations, as a lawsuit appeared likely to move forward, and as lawmakers and the President marked the six-month anniversary of the new healthcare reform law. …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – September 27, 2010
The Bermuda Monetary Authority Extends Class 4 Solvency Requirements to Class 3B Insurers
By Troutman Pepper Locke on
In a continuing effort to enhance the supervisory regime for Bermuda-based (re)insurers ahead of third country assessment of its framework under Solvency II, the Bermuda Monetary Authority (“BMA”) issued a 2010 Amendment to the Insurance (Prudential Standards) (Class 4 Solvency Requirement) Order of 2008. The 2010 Order, captioned Insurance (Prudential Standards) (Class 4 and Class 3B Solvency Requirement) Amendment Order 2010, will extend the requirements currently applicable to Class 4 insurers, to Class 3B insurers. …
Read More The Bermuda Monetary Authority Extends Class 4 Solvency Requirements to Class 3B Insurers
Brazil: Insurance Premiums Up 15.6% Through July 2010
By Troutman Pepper Locke on
Posted in Latin American Developments
Insurance premiums in Brazil increased to an aggregate of 48 billion Brazilian Real (US$ 27.9 billion) through the first seven months of the year, reflecting a 15.6% increase as compared to the same period for the prior year according to the Superintendence of Private Insurance (SUSEP). …
Read More Brazil: Insurance Premiums Up 15.6% Through July 2010