Last month, the New York Insurance Department’s Office of General Counsel issued Opinion No. 09-06-11 (the “Opinion”) which prohibits contingent annuity contracts on the grounds that such contracts constitute an impermissible form of financial guaranty insurance.
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First Circuit: No Coverage Under Claims Made and Reported Policy If Insured Fails to Report Claim within Policy Period
By Troutman Pepper Locke on
The First Circuit recently held that an insured was not entitled to coverage under a Professional Liability claims made and reported policy where the claim is not both made against the insured and reported to the insurer within the policy period. …
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D.C. Circuit Remands Rule 151A Back to the SEC
By Troutman Pepper Locke on
This updates our January 28, 2009 posting. Earlier this year, American Equity Investment Life Holding Company (“American Equity”), together with a coalition of insurance companies and independent marketing organizations, filed suit in the U.S. Court of Appeals for the District of Columbia Circuit (the “Court”) seeking to overturn Securities and Exchange Commission (“SEC”) Rule 151A which classified certain indexed annuities, previously regulated as insurance, as securities, thus subjecting them to federal, rather than state, regulation.
Sixth Circuit: Insurer That Defended Insured in State Court Action Need Not Defend Insured in Subsequent Related Arbitration; Wording of Arbitration Claim Precludes Coverage
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
Earlier this month, the Sixth Circuit affirmed a district court decision granting summary judgment to a professional liability insurer where it provided a defense in a state court action but denied coverage in a subsequent related arbitration.
Colombia Revamps Cross-Border Insurance Regulations to Comply with Free Trade Agreement with the United States
By Troutman Pepper Locke on
Posted in Latin American Developments, Regulatory
In order to comply with its free trade agreement with the United States, the Colombian legislature recently passed legislation revising various provisions of the nation’s insurance laws so as to allow certain cross-border insurance activities. As of the date of this post, the legislation still awaits the President’s signature, at which point it will immediately enter into effect. …
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UK: Financial Services Authority Announces Changes to With-Profits Rules
By Troutman Pepper Locke on
The UK Financial Services Authority published Policy Statement PS09/13 on 24 July 2009 confirming that proprietary life insurance companies will no longer be able to use their with-profit funds to meet future compensation and redress payments. …
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Delaware Court: Right to Advancement of Defense Costs for Defamation Suit can be Modified Based on Changes in Factual Circumstances
By Troutman Pepper Locke on
In a short letter-to-counsel opinion, Vice Chancellor John Noble of the Delaware Chancery Court held that a prior order granting advancement to two officers and directors can be modified based on changes in factual circumstances. …
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UK: High Court Rules Insured’s Sale of a Wrecked Vessel was a Transaction at an Undervalue Under s423 Insolvency Act 1986
By Troutman Pepper Locke on
In Dornoch Ltd & Ors v Westminster International & Ors [2009] EWHC 1782 (Admiralty) Mr Justice Tomlinson held that the sale by Westminster International (Westminster) of the wreck of a vessel, the Fariway for the sum of 1000 Euros to a related company was a transaction at an undervalue under s423 of the Insolvency Act 1986 (which, in basic terms, provides that certain disposals made to connected persons for a value less than a fair value may be set aside by the court).
UK: New Regulations Relating to Calculation of General Insurance Technical Provisions for Tax Purposes
By Troutman Pepper Locke on
The UK’s tax authority, Her Majesty’s Revenue and Customs (HMRC), has introduced new regulations relating to technical provisions made by general insurers, including members underwriting general insurance business at Lloyd’s.
New York State Insurance Department Reminds Licensees of Compliance Obligations under Federal Laws
By Troutman Pepper Locke on
The New York State Insurance Department (the “Department”) recently issued Circular Letter No. 11 to remind licensees of their obligations to comply with three federal laws: (i) the Bank Secrecy Act set forth in 31 U.S.C. §§ 5311-5330 (“BSA”); (ii) the Foreign Corrupt Practices Act set forth in 15 U.S.C. § 78dd-1-78dd-3 (“FCPA”); and (iii) requirements issued by the Office of Foreign Assets Control set forth in 31 U.S.C. § 313(a)(6)(c) (“OFAC”, collectively with BSA and FCPA, the “Federal Laws”).