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

In Washington, DC, two new laws were enacted this month that will impact insurance coverage eligibility in same-sex marriages performed out-of-state.  The Jury and Marriage Amendment Act of 2009, effective July 6, 2009, provides that “marriages legally entered into in another jurisdiction between two persons of the same sex shall be recognized as a marriage in the District.” 

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Read More New District of Columbia Laws to Impact Insurance Coverage Eligibility for Same-Sex Marriages Performed Out of State

On Wednesday, July 22, 2009, the Obama Administration sent draft legislation to Capitol Hill that would create an Office of National Insurance within the Treasury Department.  This proposal is just one in a series of legislative drafts being sent to Congress as part of the Administration’s large scale financial regulatory reform efforts (previous proposals discussed here). …
Read More Treasury Department Releases Proposal to Create Office of National Insurance

According to a recent Accenture study, cross-border expansion into emerging markets is a major short-term priority for insurance companies based in both developed and developing nations. …
Read More Latin American Insurance Update: Expansion into Emerging Markets a Priority for Insurance Companies Despite Economic Crisis; Grupo Mundial Lays Out Plans for Costa Rica; Chilean Insurer Expands into Peru; Premium Growth in Guatemala and Venezuela