In Lehman Brothers International (Europe)(in administration) v CRC Credit Fund Limited & Ors [2010] EWCA Civ 917 the Court of Appeal considered the first instance judgment of Mr Justice Briggs on the operation of the Client Money Rules (CASS) in relation to the insolvency of Lehman Brothers International (Europe)(LBIE). We have previously reported on the judgment of Briggs J here and here. …
Read More UK: Court of Appeal Reverses Key Aspects of High Court Judgment on the Treatment of Client Money in the Lehman Insolvency

On August 2, 2010, United States Senators Mark Pryor (Ark.-D) and John D. Rockefeller IV (W.V.-D) introduced the Insurance Competition and Transparency Act of 2010 (S. 3685), which will remove restrictions on the Federal Trade Commission’s (the “FTC”) authority to review market activity in the insurance industry.  S. 3685 was referred to the Senate Commerce, Science and Transportation Subcommittee on Consumer Protection, Product Safety and Insurance. …
Read More New Senate Bill Introduced That Will Expand Authority of The Federal Trade Commission to Monitor Insurers

Insurance premiums in Argentina rose 8.8% to 36.12 billion pesos (US$ 9.2 billion) in the 12 months to the end of June, the Argentine insurance superintendency (SSN) has reported. The total in June 2010 was 3.12 billion pesos (US$ 793 million), an increase of 5.9% from May and 16.5% from June 2009. …
Read More Argentina: Insurance Premiums Up 8.8% in 12 Months to June 2010

The Court of Appeal, in City & General (Holborn) Ltd v Royal Sun Alliance Plc [2010] EWCA Civ 911, was asked to consider whether the earlier decision to set aside an extension of time for service of a claim form (granted due to the claim being time-barred) was correct. The claim bought by City & General (C&G) was in respect of damage suffered to a building in London as a result of flooding which started in April 2002, the collapse of a crane on an adjoining site in January 2003, and the infestation of the building’s water systems by bacteria which was discovered in May 2004. …
Read More UK: Application for Extension of Time is Barred by the Court of Appeal

Zev Lagstein, M.D. filed a claim for benefits under a disability policy issued by Certain Underwriters at Lloyd’s London (“Lloyd’s”) after he developed heart disease and other ailments.  After Lloyd’s failed to pay out on Lagstein’s claim, he brought suit in federal court, which was stayed pending arbitration.  A three-member arbitration panel ultimately found in favor of Lagstein, awarding him the full amount of benefits under the disability policy, plus punitive damages and damages for emotional distress. …
Read More Ninth Circuit Reverses District Court’s Vacatur of Arbitration Award

On the heels of an investigation by the Attorney General of New York Andrew Cuomo regarding the use of retained asset accounts[1] by life insurers, United States House Representative Deborah Halvorson (Ill.-D) recently introduced legislation that would require, among other things, beneficiaries of the Servicemembers’ Group Life Insurance program to receive financial counseling and disclosure information regarding life insurance payments. …
Read More Legislation Introduced into the House that Mandates Certain Disclosures to Beneficiaries of Life Insurance for Military Personnel

In a decision by the United States District Court for the Southern District of New York, AXA Versicherung AG v. New Hampshire Ins. Co., 05 Civ. 10180 (JSR) (S.D.N.Y. 2010), the court held that certain fraud claims were not a matter of contract interpretation and, therefore, not arbitrable under a provision in a facultative reinsurance agreement that provided for arbitration of disputes “arising out of the interpretation of this agreement.” …
Read More Federal Court Finds that Fraud Claim is not Arbitrable

As a reminder, please join the U.S. Reinsurance Under 40s Group tomorrow, August 5th, at its Summer Social Event.  The event will take place at Bourbon Street Bar and Grille and begin at 6:00 pm.  For more information and to RSVP, please click here. …
Read More Last Call — Please Join the U.S. Reinsurance Under 40s Group at its Summer Happy Hour

As mentioned in our prior post, New York Attorney General Andrew Cuomo has begun an investigation into the alleged misuse of retained asset accounts by life insurance companies.  This probe started with two of the largest life insurers and has now been widened to include six more.  The latest subpoenas were sent on Friday, July 30th. …
Read More New York Attorney General Office Broadens its Probe into the Life Insurance Industry’s Use of Retained Asset Accounts; Class Action Lawsuit Against Life Insurer Filed

Louisiana Governor Bobby Jindal signed legislation that bans insurers from cancelling or non-renewing homeowners insurance coverage when a policyholder files a claim based on Chinese Manufactured drywall.  As previously reported here, Louisiana state Senate Bill, SB 595, was sponsored by State Senator Julie Quinn (R-Metairie) and unanimously passed the Louisiana Senate on April 26, 2010. …
Read More Chinese Drywall – Louisiana Legislature Bans Policy Cancellations and Non-Renewals Based upon Drywall Claims