In the matter of Royal & Sun Alliance Insurance Plc and others v Rolls-Royce Plc [2010] EWHC 1869 (Comm), which arose from parallel proceedings being pursued in England and Florida, the Court made clear that English proceedings will not be stayed in such instances unless it is shown that the foreign court is clearly the most appropriate forum. …
Read More UK: English High Court Refuses to Stay English Proceedings in Favour of the Florida Courts

We have previously reported here and here on the long-running saga following the demise of Equitable Life. The latest chapter is the Equitable Life (Payments) Bill which received its first reading in the House of Commons on 22 July 2010.  The Bill is intended to allow the Treasury to provide finance for payments to be made in cases where persons have been adversely affected by the Government’s maladministration in the regulation of Equitable Life Assurance Society (Equitable Life) in the period before 1 December 2001. …
Read More UK: Equitable Life (Payments) Bill Receives First Reading in House of Commons

The UK Ministry of Justice has announced that the Bribery Act will be implemented in April 2011, six months later than originally anticipated.  The Bribery Act will introduce a comprehensive scheme of bribery offences in the private and public sectors, including the offences of bribery of a foreign public official and, in relation to commercial organisations, failing to prevent bribery. …
Read More UK: Bribery Act 2010

On 19 July 2010, the FSA sent a letter to UK insurance firms reminding them of the requirement that terms in legal expenses insurance must not detract from, or qualify in any way, an insured’s freedom to choose a lawyer. …
Read More UK/EU: Legal Expenses Insurance Must Comply with Insured’s Freedom to Choose Lawyer Under EU Directive

On 20 July 2010, the Hong Kong Special Administrative Region and Beijing signed an historic agreement allowing Hong Kong to become the first yuan clearing centre outside mainland China. Asia Insurance Review reports that insurers and wealth management companies stand to gain from the agreement. …
Read More Hong Kong: Yuan Liberalisation Boosts Insurers

In Mt. McKinley Ins. Co. v. Corning Inc., 2010 NY Slip Op 20235 (N.Y. Sup. Ct. June 14, 2010), an insured (“Corning”) moved to compel discovery of reinsurance and reserve information from its insurers, arguing that this information was relevant, material and necessary to its coverage claim.  Specifically, Corning alleged that the reinsurance information sought could be relevant to the insurers’ liability for the asbestos claims at issue (including whether the insurers took inconsistent coverage positions with their reinsurers) and to rebut the insurers’ claims of late notice. …
Read More New York State Court Denies Motion to Compel Discovery of Reinsurance and Reserve Information

A public hearing on August 20, 2010 will explore the possibility of increasing insurance capacity in New York by easing access to unauthorized insurers. The New York State Insurance Department (“NYID”) is soliciting input from the public as it determines whether to revise eligible coverages on the Export List, as set forth in Insurance Department Regulation 41 (11 NYCRR 27). …
Read More New York Insurance Department to Hold Hearing on August 20, 2010 on Whether to Expand the Export List Under Regulation 41

California Insurance Commissioner Steve Poizner announced on July 1, 2010 that insurers in his state had sold about 20% of the assets the industry holds in the 50 companies that the California Department of Insurance (“CDI”) has identified as doing business with Iran’s nuclear, energy and defense sectors. …
Read More California Insurers Divest $400 Million in Iran-Related Assets

According to a recent article in the Washington Post, “Tehran’s ability to ship vital goods has been significantly curtailed as some of the world’s most powerful Western insurance companies cut off Iranian shippers out of fear that they could run afoul of U.S. laws, the insurers say.”  In light of the U.S. sanctions against Iran which followed the U.N.’s set of sanctions, companies have become more hesitant to conduct business with their Iranian counterparts for fear of running afoul of the U.S. sanctions. …
Read More Iran’s Shipping Industry Suffers as Foreign Insurer’s Withhold Coverage

Proposed legislation that would limit a tax deduction for reinsurance premiums paid to a foreign affiliate of a US insurer has drawn the formal opposition of the German government.  Ambassador Klaus Scharioth, in a recent letter to House Ways and Means Chairman Sander Levin (D-MI), said that the so-called Neal Bill (HR 3424) “goes well beyond” the undisputed goal of combating tax avoidance and evasion and, as a result, conflicts with provisions of the German-US tax treaty. …
Read More German Government Opposes US Legislation Limiting Deductibility of Reinsurance Premiums