Hastings Insurance Services Ltd (Hastings) (a subsidiary of Insurance Australia Group) has been fined £735,000 by the FSA for not treating customers fairly. The fine is the largest ever imposed on an insurance broking firm. 

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Read More UK: The Financial Service Authority (FSA) is Taking Action on Treating Customers Fairly (TCF) Failings

On 7 July 2008, the Comité Européen des Assurances (CEA) published a response to the European Commission’s consultation paper on Insurance Guarantee Schemes (IGS) (see our previous blog here). 

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Read More EU: CEA Publishes Response to Consultation on Insurance Guarantee Schemes

New Jersey has become the latest state to allow pay-as-you-drive auto insurance plans, which are also permitted in Alabama, Michigan, Minnesota and Oregon.  A pay-as-you-drive auto insurance plan is one that charges a driver based on the numbers of miles driven and how abruptly drivers brake and accelerate.  Two large insurers, GMAC Insurance and Progressive, currently offer such plans. 

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Read More Pay-as-You-Drive Auto Insurance in New Jersey

The Chilean legislature was recently presented with a draft law designed to modernize the insurance and reinsurance provisions contained within Chile’s Code of Commerce.  If enacted, the legislation would replace Chile’s current laws concerning private insurance and reinsurance in their entirety. 

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Read More Chile Considers Legislation To Modernize Its Insurance and Reinsurance Laws

On July 23, 2008, the California Insurance Department announced that it had recovered $56.25 million from Continental Casualty Co. (“Continental”) in connection with a surety bond issued by Continental that guaranteed the obligations of Superior National Insurance Company (“Superior”), a workers’ compensation insurer that was liquidated in 2000. …
Read More Continental Casualty Co. Pays California Guarantee Association $56 Million

The Military Personnel Financial Services Protection Act, passed by Congress in 2006, prohibits insurers from entering into or renewing a contractual relationship with an agent or other person who sells life insurance on a military installation unless the insurer has implemented a system to report disciplinary actions taken by (1)  the insurer or (2) any Federal or State government entity against its agents for conduct occurring on a military installation. 

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Read More Kentucky Department Clarifies Regulation of Life Insurance Sales to Military Personnel

Last month, Ohio residents filed a class action complaint against five of the largest baby bottle and “sippy cup” makers:  Avent, Dr. Brown’s, Evenflo, Gerber, and Playtex.  The lawsuit alleges that the bottle makers were aware of the dangers of Bisphenol-A (commonly referred to as “BPA”) but misrepresented, both intentionally and negligently, their products’ safety.  BPA, a component of clear polycarbonate, is commonly used in baby bottles, pacifiers and other baby and adult products. …
Read More Ohio Residents File Class Action Complaint Against Makers of Baby Bottles with BPA

On 23 May 2008, the European Commission issued a consultation paper (CP) on amendments to the decisions establishing the three Lamfalussy Level Three committees (See: Consultation Paper). HM Treasury and the FSA have now jointly responded to the CP. The response was also agreed with the Bank of England and the Pensions Regulator (Response). (See: Joint FSA and HMT response and Joint letter to Commissioner). …
Read More UK: Response to European Commission consultation on the responsibilities of the European insurance supervisors’ committee (CEIOPS)

Last month, the New York State Insurance Department (the “Department”) held a public hearing in New York City to explore the possibility of expanding the Excess Lines Export List (the “Export List”).  The Export List is a compilation of risks or coverages that may be placed by surplus lines brokers without compliance with the three declinations rule. …
Read More Agents and Brokers Urge Expansion of New York Excess Lines Export List

On 17 July in Equitas Limited v Allstate Insurance Company [2008] EWHC 1671 Mr Justice Beatson handed down his decision on whether Allstate was entitled to a stay of the instant proceedings initiated by Equitas in March 2008. 

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Read More UK: Court Considers Application for Stay in Favour of Texas Arbitration