Lloyd’s has finalised the rules and guidance for the 2009 capacity transfer season. Capacity transfers enable members to surrender or acquire the right to underwrite a specific amount of premium on Lloyd’s syndicates. The rules and guidance contains the Auction Rules, the Bilateral Arrangements Rules, the Conversion Rules, the Capacity Offer Rules and the explanatory guide to the Capacity Auctions and Bilateral Arrangements. No substantive amendments have been made to the 2008 rules and guidance. …
Read More UK: Lloyd’s Announces Capacity Market Rules for 2009

On May 4, 2009, New Jersey State Senator Nia H. Gill introduced Senate Bill 2766 into the New Jersey State Senate to temporarily prohibit the use of credit-based insurance scoring by property-casualty insurers in rate-making for personal lines insurance coverage.  The bill, as currently drafted, would suspend such use of credit-based insurance scoring until June 30, 2011. …
Read More New Jersey Senate Considering Ban on Credit-Based Insurance Scoring

The Government Accountability Office (the “GAO”) recently issued a report regarding its review of the steps made by the National Association of Insurance Commissioners (the “NAIC”) and state regulators to make rules regarding producer licensing, product approval, and market conduct regulation more uniform and reciprocal.  While the report notes that progress in these three areas has been made, the GAO believes that several challenges still remain. 

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Read More The Government Accountability Office Releases a Report on Insurance Regulation Uniformity and Reciprocity

According to industry reports, the U.S. Treasury Department is willing to inject up to $22 billion into the life insurance industry and has given preliminary approval to six life insurers to participate in the Troubled Asset Relief Program (“TARP”).  TARP is only available to life insurers with federally chartered banks, or savings-and-loan institutions. 

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Read More Treasury Opens TARP Funds to Certain Life Insurers

Utopia Studios, Ltd., a New York corporation, retained Earth Tech, Inc., a California corporation with offices worldwide, to provide engineering and consulting services in connection with the development of a property.  The parties’ relationship was governed by a Master Services Consulting Agreement (“MSA”) that included, among other terms, a broad arbitration provision. 

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Read More New York Federal Court Compels Party to Arbitrate, Despite the Fact that Party Claimed to be a Nonsignatory to the Relevant Arbitration Agreement

Late last month, the National Association of Insurance Commissioners (the “NAIC”) held a public hearing regarding the use of credit-based insurance scores by insurers.  The hearing served as a fact-finding session where opposing viewpoints were heard and discussed.  The topics covered included:  (1) what constitutes a credit-based insurance score; (2) an explanation of how insurers use credit-based insurance scores; and (3) how the current economic conditions are affecting policyholder premiums related to credit-based insurance scores. 

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Read More The National Association of Insurance Commissioners Holds Hearing Regarding Use of Credit-Based Insurance Scoring

On 7 May 2009, the Financial Services Global Competitiveness Group (FSGCG), which is co-chaired by the Chancellor, Alistair Darling, and former Citi Chairman, Sir Win Bischoff, produced a report on the future of the UK’s financial services sector. As the FSGCG consists of a number of members representing key stakeholders in the sector, this report reflects the view of the UK’s financial services leaders. …
Read More UK: Report on the Future of the UK Financial Services Sector

On Thursday, May 14, 2009, the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises (the “Subcommittee”) held a hearing titled, “How Should the Federal Government Oversee Insurance?” 

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Read More Hearing on Capitol Hill Asks Not Whether There Should be Federal Oversight of Insurance, but Rather How the Federal Government Should Oversee Insurance

Last month, the Obama Administration stated its position on the reauthorization of the National Flood Insurance Program (“NFIP”).  In a letter from Department of Homeland Security Secretary Janet Napolitano to Representative Barney Frank, chairman of the House Committee on Financial Services, the Obama Administration announced that it “supports meaningful reforms to the NFIP and reauthorization of the NFIP through Fiscal Year 2014.” 

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Read More Obama Administration Announces Position on the National Flood Insurance Program

On May 7, 2009, a jury in the Northern District of Illinois reached a mixed verdict finding in plaintiffs’ favor on several counts in the Household International securities fraud class action.  The trial will now move on to the damages phase.  Prior to this verdict, only six other securities class actions that involve conduct after the passage of the PSLRA in 1995, have been tried to a verdict. …
Read More Plaintiffs Prevail in Rare Securities Class Action Verdict