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. 

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Read More Sixth Circuit: Insurer That Defended Insured in State Court Action Need Not Defend Insured in Subsequent Related Arbitration; Wording of Arbitration Claim Precludes Coverage

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. …
Read More Colombia Revamps Cross-Border Insurance Regulations to Comply with Free Trade Agreement with the United States

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. …
Read More UK: Financial Services Authority Announces Changes to With-Profits Rules

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. …
Read More Delaware Court: Right to Advancement of Defense Costs for Defamation Suit can be Modified Based on Changes in Factual Circumstances

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). 

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Read More UK: High Court Rules Insured’s Sale of a Wrecked Vessel was a Transaction at an Undervalue Under s423 Insolvency Act 1986

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. 

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Read More UK: New Regulations Relating to Calculation of General Insurance Technical Provisions for Tax Purposes

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”). 

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Read More New York State Insurance Department Reminds Licensees of Compliance Obligations under Federal Laws

Fitch Ratings recently issued its annual report on the Argentinean insurance market entitled “El mercado asegurador argentino: Resultados y perspectivas 2009.”  The report reflects significant turmoil in the market given the fluid political, economic and regulatory situation in Argentina. 

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Read More Argentina: Fitch Issues Mixed Annual Report on Insurance Market

Mapfre’s Latin American operation, Mapfre America, recently announced that its net profits increased 25.0% and its total premiums 20.3% when comparing the first half of 2009 to the first half of 2008.  Mapfre America’s net profits for the period totaled 64.4 million euros (US$ 91.9 million), while its premiums for Latin America totaled 2.03 billion euros (US$ 2.88 billion).  Mapfre America’s total premiums increased by 40.4% in the life sector (453 million euros/US$ 643 million) and 15.5% in the non-life sector (1.58 billion euros/US$ 2.24 billion). 

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Read More Latin American Insurance and Reinsurance Update: Premium Growth Results and Forecasts

On 22 July 2009 three HSBC companies: HSBC Life UK Ltd; HSBC Actuaries and Consultants Ltd; and HSBC Insurance Brokers Ltd, were fined £1.6m, £875,000, and £700,000 respectively by the UK Financial Services Authority (FSA). The fines are in response to those companies failing to have in place adequate systems and controls to protect customers’ confidential information from being lost or stolen. …
Read More UK: Financial Services Authority Punishes Failure to Protect Confidential Customer Information with Hefty Fines