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

Canada is set to impose new sanctions against Iran on Monday, according to the Globe and Mail.  This move underscores Canada’s alignment with the U.S. and European Union, which have imposed tougher sanctions than those approved earlier by the United Nations in order to further pressure Tehran to drop what is widely believed to be a nuclear-weapons program. …
Read More Canada Set to Impose New Unilateral Sanctions Against Iran

On 12 July 2010 the Secretary for Financial Services and the Treasury, Professor K C Chan, released a consultation paper entitled “Proposed Establishment of an Independent Insurance Authority”. The insurance sector and the public have a 3 month consultation period (which ends on 11 October 2010) in which to provide their views. …
Read More Hong Kong: Government Proposes to Establish Independent Insurance Authority

Plaintiff moved to compel production of defendant American Red Cross’ reinsurance agreements.  Defendant objected on the grounds that it was self-insured up to $1 million, and, in its counsel’s opinion, any judgment in the action would not exceed that amount. …
Read More Federal Court Orders Party to Produce Copies of its Reinsurance Agreements Under Fed. R. Civ. P. 26