In the wake of American International Group, Inc.’s (“AIG”) request for a $40 billion bridge loan from the Federal Reserve, New York Governor David Patterson has announced that AIG has been granted “special permission to access $20 billion of capital in its subsidiaries to free up liquidity.”  This will enable, in essence, AIG to make a bridge loan to itself. 

…
Read More BREAKING NEWS: AIG Receives Special Permission to Access $20 Billion of Subsidiaries’ Capital

On 12 September 2008, Helen Clark attended the British Insurance Law Association (BILA) Annual Conference. The opening session was lead by the Law Commissioner, Mr David Hertzell, who is heading up the Law Commission’s wide scale review of Insurance Contract Law Reform. …
Read More UK Insurance Contract Law Reform: BILA Annual Conference at Lloyd’s

On September 9, 2008, Florida Insurance Commissioner Kevin McCarty ordered State Farm Florida to issue $120 million in credits or refunds to approximately 98,000 current or former policyholders who did not receive, or who did not apply for, Windstorm Loss Reduction Rating Plan discounts that were available to Windstorm policy holders who made their homes more windstorm resistant. 

…
Read More Florida Insurance Commissioner Orders State Farm to Refund $120 Million for Unpaid Windstorm Mitigation Discounts

As an update to our previous post, Betty C. Baker has been named the acting commissioner of the Nevada Division of Insurance (the “Division”) following the retirement of Alice Molasky-Arman.  Prior to this appointment, Baker served as the Division’s chief insurance counsel since 1999. 

…
Read More Betty C. Baker to Serve as Acting Nevada Insurance Commissioner

Connecticut Insurance Commissioner Thomas Sullivan recently endorsed proposed federal legislation to streamline the insurance producer licensing process and establish uniformity in the qualifications that need to be met in order to conduct business in multiple states.  According to Sullivan, producer regulation is an area where there is a need for federal legislation.
Read More The National Association of Registered Agents and Brokers Reform Act of 2008 (H.R. 5611) receives support from the Connecticut Insurance Commissioner

An advisory opinion handed down  4 September in the European Court of Justice (ECJ) may have signalled an end to the English court’s ability to issue anti-suit injunctions against parties who commence parallel litigation in other EC Member State countries. …
Read More UK: Blow to Anti-Suit Injunctions

Five motor dealers have been fined more than £175,000 by the FSA for breaches relating to the sale of PPI alongside motor finance (See: FSA fines five motor dealers for PPI failings). A total of 2175 customers were subsequently put at risk as a result of these breaches. 

…
Read More UK: The Financial Service Authority (FSA) has Fined Five Motor Dealers for Breaches Relating to the Sale of Payment Protection Insurance (PPI)

Hawaii Insurance Commissioner L.P. Schmidt issued a memorandum to reinsurance intermediaries on September 3, 2008, regarding the licensing requirements for all reinsurance intermediaries.  All reinsurance intermediaries, including nonresident reinsurance intermediary-brokers and nonresident intermediary-managers, must be licensed under Hawaii Insurance Law. …
Read More Hawaii Issues Memorandum to Reinsurance Intermediaries

As we reported here, Alabama Governor Bob Riley announced that Walter A. Bell will be resigning as Alabama’s Insurance Commissioner at the end of August.  On September 2, 2008, Governor Riley issued a press release to announce the appointment of Jim L. Ridling as the new Insurance Commissioner. …
Read More Jim L. Ridling Appointed New Alabama Insurance Commissioner