Mr. Matthew Elderfield, CEO of the Bermuda Monetary Authority (BMA), issued a press statement on 7 October 2008 to alleviate concern and uncertainty in Bermuda arising from the widespread instability within the global financial sector.
Read More BMA Says Bermuda is Well Placed for the Current Challenging Environment in the Financial Markets
UK: Financial Services Authority (FSA) Provides an Update on the Third Phase of its Thematic Review of the Sale of Payment Protection Insurance (PPI)
By Troutman Pepper Locke on
Since 2005, the FSA has been carrying out a thematic review of the sale of PPI, the principal aim of which is for firms to improve their sales standards. The third phase of the FSA’s thematic review on PPI involved a mystery shopping exercise in respect of face to face sales of PPI alongside unsecured personal loans.
Treasury Secretary Paulson Selects Interim Head of Financial Rescue Program
By Troutman Pepper Locke on
Neel Kashkari has been named the interim head of the new Office of Financial Stability within the United States Department of Treasury. The Office of Financial Stability was created under the Emergency Economic Stabilization Act of 2008, previously discussed here. …
Read More Treasury Secretary Paulson Selects Interim Head of Financial Rescue Program
Third Circuit Upholds Liability of PricewaterhouseCoopers in Ambassador Insolvency
The United States Court of Appeals for the Third Circuit recently upheld a $182.9 million judgment against PricewaterhouseCoopers, LLP (“PWC”) for allegedly contributing to the failure of Ambassador Insurance Company (“Ambassador”) through negligent auditing.
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Read More Third Circuit Upholds Liability of PricewaterhouseCoopers in Ambassador Insolvency
UPDATE: House Passes Revised Bailout Bill
Last Friday, the House of Representatives passed the Senate’s revised version of the $700 billion bailout bill, H.R. 1424, by a vote of 263-171. This was a significant turnaround from last Monday’s House vote of 205-228, which rejected the first version of the bailout bill. H.R. 1424 was signed into law by President Bush the same day. …
Read More UPDATE: House Passes Revised Bailout Bill
Wisconsin Supreme Court Awards Nearly $1 Million Default Judgment Against Insurer That Failed to Timely Answer
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
In Otto v. Physicians Ins. Co. of Wisconsin Inc., 751 N.W.2d 805 (Wisc. 2008), a sharply divided Wisconsin Supreme Court affirmed a default judgment entered against an insurer for damages allegedly caused by its co-defendant insureds’ negligence, even though no finding had been made as to the insureds’ liability for the damages at issue. …
Read More Wisconsin Supreme Court Awards Nearly $1 Million Default Judgment Against Insurer That Failed to Timely Answer
Insane Act Can Be “Intentional” for Insurance Coverage Purposes
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The Ninth Circuit federal court of appeals recently held that a person can commit an “intentional act” for insurance purposes even if he was criminally insane at the time of the act. …
Read More Insane Act Can Be “Intentional” for Insurance Coverage Purposes
Pennsylvania Federal Court Bars As Untimely Insurers’ Attempt to Join Additional Insurers in Asbestos Coverage Case
By Troutman Pepper Locke on
A Pennsylvania federal court recently ruled that a group of defendant insurers in an asbestos coverage case would not be permitted to join a number of additional insurers as defendants in the action as their request for joinder was untimely.
UK: FSA Publishes CP 08/15 Reviewing Financial Services Compensation Scheme Maximum Limits
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Financial Services Authority (FSA) has published a consultation paper discussing revisions to the maximum limits of compensation payable by the Financial Services Compensation Scheme (FSCS). The FSCS covers deposits, life and general insurance, investment business, and home finance mediation. …
Read More UK: FSA Publishes CP 08/15 Reviewing Financial Services Compensation Scheme Maximum Limits
Ratings Downgrades Can Result in Regulatory Non-Compliance in Many Countries
By Troutman Pepper Locke on
With stock market turbulence and industry consolidation in 2008 have come financial strength ratings downgrades for more than 100 insurers and reinsurers. While such downgrades can result in numerous consequences, one potentially unrecognized consequence is non-compliance with regulatory reporting guidelines in numerous jurisdictions in Latin America and other parts of the world. …
Read More Ratings Downgrades Can Result in Regulatory Non-Compliance in Many Countries