The Centers for Medicare and Medicaid Services (CMS) announced on August 18 that states have until September 24 to request an extension of the enhanced Federal Medical Assistance Percentage (FMAP) – the federal government’s share of Medicaid funding. …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – August 30, 2010

On 26 August 2010, the European Commisson (the Commission) opened a competition investigation into the maritime insurance sector, in particular the agreements between the Protection & Indemnity (P&I) Clubs within the International Group of P&I Clubs (the International Group), a worldwide association of thirteen P&I Clubs. …
Read More EU: Commission Announces Investigation into International Group of P&I Clubs

The fifth Quantitative Impact Study on the Solvency II implementing measures (QIS5) was launched by the European Commission (the Commission) on 23 August 2010. The study will run until November 2010 and the Commission notes that it is aiming for a participation rate of at least 60% of EU insurance and reinsurance companies and 75% of EU insurance groups. Of particular importance to the Commission is participation by smaller insurance companies and insurance providers specialised in specific business lines. …
Read More EU: Fifth Solvency II Quantitative Impact Study Begins with a Call for Participation From the European Commission

The Financial Services Authority (FSA) has reported that it has fined Zurich UK £2,275,000 for “failing to have adequate systems and controls in place to prevent the loss of customers’ confidential information“. According to the FSA’s Final Notice, “the breaches related to the management of risks associated with the security of customer information in the context of certain outsourcing arrangements.” …
Read More UK: FSA Fines Zurich UK

A decision of the Eighth Circuit Court of Appeals, Northport Health Services of Arkansas, LLC v. Rutherford, No. 09-2433 (8th Cir. 2010), recently held that diversity of citizenship jurisdiction in the context of a motion to compel arbitration under § 4 of the Federal Arbitration Act (“FAA”) can be determined by looking at the citizenship of the parties named in the proceedings before the district court, plus any indispensible parties who must be joined. …
Read More Eighth Circuit Rules on Diversity Jurisdiction for Federal Actions to Compel Arbitration

Earlier this month, the Massachusetts Division of Insurance (the “Division”) struck a deal with Health New England to settle a dispute over rate increases.  In the winter of 2009, Health New England, a Springfield, Massachusetts health insurer, attempted to increase its health insurance premiums by a range of 11.5% to 21.3% for about 21,000 customers.  The Division denied this increase on April 1, 2010, along with other insurers who sought double-digit increases. …
Read More Massachusetts Health Insurer Settles With Division of Insurance On Rate Increases

On 18 August 2010 the UK Ministry of Justice launched a “Call for Evidence and Views” to inform its response to a European Commission Green Paper on a European contract law. …
Read More UK: UK Government’s “Call for Evidence and Views” on a European Contract Law

On 17 August 2010 the China Insurance Regulatory Commission (the CIRC) issued basic guidelines for the internal controls at Chinese insurance companies, which include monitoring their allocation and management of insurance funds. …
Read More China: China Insurance Regulatory Commission Issues Guidelines to Strengthen Insurers’ Control of Funds

The People’s Bank of China (PBC) announced on 17 August 2010 a pilot scheme to permit Hong Kong and Macau insurers, banks and certain other financial institutions, with the approval of the PBC, to invest in the Chinese mainland’s 48.8 trillion renminbi (US$7.2 trillion) interbank bond market. Each institution will receive a quota for Chinese mainland interbank bonds according to its individual situation. The move has been welcomed by the Hong Kong Monetary Authority (HKMA). …
Read More Hong Kong: Pilot Scheme to Permit Insurers to Tap China’s Mainland Interbank Bond Market

Plaintiff moved to vacate an arbitration award issued in favor of defendant Stroehmann Bakers on the grounds that, among other things, the arbitrator’s decision was in “manifest disregard of the law.”  The U.S. District Court for the District of New Jersey, relying upon Third Circuit case law, noted that plaintiff was required to establish that the arbitrator’s award had absolutely no support from the record in order to prevail on this basis.  The court found that plaintiff had failed to meet the standard for manifest disregard of the law, and thus denied plaintiff’s motion to vacate. …
Read More New Jersey Federal Court Finds That Arbitration Award Was Not in Manifest Disregard of the Law