This updates our January 28, 2009 and December 22, 2008 blog postings.  On February 10, 2009, the National Association of Insurance Commissioners (“NAIC”) and the National Conference of Insurance Legislators (“NCOIL”) filed suit in the U.S. Court of Appeals for the District of Columbia Circuit seeking to overturn Rule 151A adopted by the Securities and Exchange Commission (“SEC”) which classifies certain indexed annuities, previously regulated as insurance, as securities, and thus subjects them to federal, rather than state, regulation. …
Read More NAIC and NCOIL File Suit to Overturn SEC Rule Classifying Indexed Annuities as Securities

The New York Insurance Department issued OGC Opinion No. 09-01-05 addressing several questions posed with respect to Chapter 388 of the Laws of 2008 (generally referred in this blog as the late notice Legislation), and the discussion of the Legislation in the Insurance Department’s Circular Letter 26 (Nov. 18 2008),

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Read More NY Insurance Department Issues OGC Opinion Answering Questions Regarding NY’s Late Notice Statute

Boeing Company has announced in its recent 10-K filing (9 February 2009) that it has prevailed in an arbitration brought by insurers in respect of a defective model 702 satellite.   Insurers of Thuraya Satellite Telecommunications (Thuraya) commenced arbitration in 2004 alleging that Boeing Satellite Systems International, Inc. (BSSI) breached its contract with Thuraya for the sale of a satellite that experienced power loss issues. 

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Read More Boeing Prevails in Satellite Arbitration

Plaintiff Jurupa Valley Spectrum, LLC (“Jurupa”) is a beneficiary of certain surety bonds issued by Frontier Insurance Company, which were reinsured by National Indemnity Company (“NICO”).  See Jurupa Valley Spectrum, LLC v. National Indemnity Co. and National Liability & Fire Ins. Co., No. 07-cv-3211 (2d Cir. Feb. 4, 2009). 

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Read More U.S. Court of Appeals for the Second Circuit Finds that Insured Cannot Assert a Direct Action Against its Reinsurer

In Laker Vent Engineering Ltd v Templeton Insurance Ltd [2009] EWCA Civ 62  Templeton Insurance Ltd (Templeton) appealed against a decision that it was bound to indemnify Laker Vent Engineering Ltd (Laker) under a legal expenses policy in respect of the costs arising out of an arbitration between Laker and a German company, Gas Wesser Umwelt Gommen GmbH (GWUG). …
Read More UK: Court of Appeal Considers Non-Disclosure and Notification in the Context of Legal Expenses Insurance

On February 11, 2009, Representatives Melissa Bean (D-IL) and Ed Royce, (R-CA) announced that they plan to introduce the National Insurance Consumer Protection and Regulatory Modernization Act (the “Act”).  The Act would create a federal charter for insurance regulation and would create, according to Rep. Bean, a “streamlined and uniform regulatory process that enhances competition and reduces the multi-state regulation barriers.” …
Read More Lawmakers to Introduce the National Insurance Consumer Protection and Regulatory Modernization Act

In response to the Competition Commission’s (the Commission) final report into the PPI market which was published on 29 January 2009 (see our previous blog here), the Financial Services Authority (FSA) has considered the measures proposed by the Commission and as a result has clarified its own handbook rules for a firm selling PPI contained in the Insurance Conduct of Business sourcebook (ICOBS). 

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Read More UK: FSA Clarifies ICOBS Rules in Response to Competition Commission’s Final Report into Payment Protection Insurance (PPI) Market

The CC’s Final Report (the Report) was published on 29 January 2009 and sets out the measures it feels are necessary to enhance the competitiveness of the PPI market. 

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Read More UK: Competition Commission (CC) Publishes Final Report into Payment Protection Insurance (PPI) Market

Reps. Dennis Moore (D-Kan.) and Scott Garrett (R-N.J.) recently announced their intention to reintroduce the Nonadmitted and Reinsurance Reform Act (the “NRRA”).  As we previously reported here and here, the NRRA would establish national standards on how states may regulate and tax surplus lines insurers and also sets national standards concerning the regulation of reinsurance. …
Read More House of Representatives to Reintroduce the Nonadmitted and Reinsurance Reform Act

In a recent interview with National Underwriter magazine, New York Superintendent of Insurance Eric Dinallo stated that there are “major top-end brokers” interested in doing business on the potentially-resurrected New York Insurance Exchange (the “Exchange”) if it can help increase market capacity. 

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Read More Superintendent Dinallo Discusses More on the Revival of the New York Insurance Exchange