At the Future of General Insurance conference on 5 November 2008, Sarah Wilson, the FSA’s insurance sector leader, warned that the insurance industry might find itself under pressure if it fails to reform its practices regarding contract fairness and customer relations. She added that the FSA will be taking a keen look at the sector, particularly in light of the added risks it faces in the current economic climate. …
Read More UK: FSA’s Message to the Industry at the Future of General Insurance Conference

The Eleventh Circuit recently held that an excess Directors and Officers (“D&O”) insurance policy did not cover its insured’s attorney’s fees after the primary policy’s limits were depleted. …
Read More Eleventh Circuit Finds that Excess D&O Policy Did Not Cover Attorney’s Fees After Exhaustion of Primary Policy’s Limits

In the case of HLB Kidsons v Lloyd’s Underwriters subscribing to Lloyd’s policy No 621/PK1D000101 & Others [2008] EWCA Civ 1206, the Court of Appeal has given useful guidance on when notification of circumstances which may give rise to a claim is effective. Kidsons was a firm of chartered accountants who sold tax avoidance products through its subsidiary Solutions @ Fiscal Innovation Limited (S@FI). …
Read More UK: Court of Appeal Gives Guidance on When Notification of Circumstances is Enough

In Markel Capital Limited v (1) Gothaer Allgemeine Versicherung AG (2) Continentale Sachversicherung AG and Bloemers & Partners Limited [2008] EWHC 2517 (Comm), the Court was asked to consider a summary judgment application by Markel in respect of its claim for a declaration of non-liability on the ground that a condition precedent to its liability had not been satisfied. The Court also heard an application by the Defendant reinsureds against the broker, Bloemers & Partners, who broked the reinsurance contract to Markel on their behalf. 

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Read More UK: English High Court Examines Whether a Claims Co-Operation Clause had been Agreed as a Term of a Reinsurance Contract

On October 21, 2008, Argentina’s president, Cristina Fernandez de Kirchner, announced a plan to nationalize the country’s 30 billion dollars in private pension funds, ostensibly in a effort to protect retirees’ savings during the current global economic turmoil.  The announcement, however, rather than stabilizing Argentina’s economy, has thus far resulted in greater uncertainty and tremendous economic and social turmoil. 

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Read More Argentina: Ramifications of the Nationalization of Private Pension Funds

Massachusetts already has one of the most aggressive data security regulations in the country, and robust new guidelines were just issued to implement this regulation, effective January 1, 2009. 

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Read More New Massachusetts Guidelines for Mandatory Computer Security Policies

La Nacion of Costa Rica reports that the new Superintendencia General de Seguros (Sugese) is investigating 15 persons concerning allegations of illegal sales of foreign insurance policies.  Complaints were filed with Sugese against the 15 persons by the Instituto Nacional de Seguros (INS), which until recently held a government-imposed monopoly on insurance sales and remains the only entity currently authorized to sell insurance in Costa Rica. 

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Read More New Costa Rican Insurance Superintendency Investigating “Illegal” Sale of Foreign Insurance

As previously discussed here, here, here, and here, in enacting the Emergency Economic Stabilization Act (“EESA”), Congress authorized the United States Treasury to establish the Troubled Asset Relief Program (“TARP”).  As part of the Treasury’s effort to inject capital into the credit markets, the Treasury initiated the Capital Purchase Program (“CPP”) as part of the TARP. …
Read More Insurance Company Participation in the Troubled Asset Relief Program

Since January 2008, Merck and Co., Inc. (“Merck”) and its joint venture partner, Schering-Plough, Corp. (“Schering-Plough”) have been under investigation for their marketing of the cholesterol lowering drug Vytorin.  Last week, Merck announced in its third quarter Form 10-Q that it received notice of further investigations and additional lawsuits, including an investigation by the U.S. Department of Justice (“DOJ”). 

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Read More Merck Discloses Additional Vytorin Investigations and Lawsuits

On 5 November, Lloyd’s issued Market Bulletin Y4202, entitled Principles of Enforcement Action (the Bulletin). The Bulletin, prepared by the Market Supervision and Review Committee (the body responsible for investigating matters of potential misconduct) sets out non-exhaustive list of the types of conduct that may result in enforcement action being taken. 

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Read More UK: Lloyd’s Issues Guidance on When it Will Take Enforcement Action