Brazil’s insurance regulator, the Superintendency of Private Insurance (SUSEP), recently issued regulations establishing that cessions to occasional reinsurers (see definition below) by Brazilian insurers may not exceed 10% of the total premiums ceded to reinsurers.  The new regulations further establish that no Brazilian insurer may cede more than 50% of the risk it underwrites to occasional reinsurers.  The moves were not unexpected, having been foreshadowed in SUSEP’s discussions with the industry. …
Read More Brazil Issues New Regulations Governing Maximum Cession Levels To Occasional Reinsurers

On July 14th, industry representatives presented their viewpoints on the need to reform the current New York regulations regarding producer compensation standards and disclosure to a panel consisting of officials from the New York Insurance Department and the Office of the Attorney General. 

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Read More The New York Insurance Department and New York Attorney General Held the First of Three Joint-Hearings Regarding Insurance Producer Compensation

In the June issue of Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Review, we reported on the the key amendments proposed by the UK Treasury in its draft Lloyd’s Legislative Reform Order (LRO) (the article can be found here). We have also blogged previously the overwhelming support of Lloyd’s members for the proposals (the post can be found here). 

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Read More Lloyd’s Legislative Reform Order Laid Before Parliament

Following a meeting between BIBA and IIB, the two broker bodies have confirmed that they are working together to address concerns raised by the FSA’s discussion paper entitled ‘Transparency, disclosure and conflicts of interest in the commercial insurance market’ (the DP) (See: BIBA press release). 

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Read More UK: British Insurance Brokers’ Association (BIBA) and the Institute of Insurance Brokers (IIB) Liaise on Transparency Issues

The Supreme Court of Connecticut recently affirmed a 2006 Superior Court decision that a liability insurer for a subcontractor was required to provide a defense for the general contractor in connection with a lawsuit alleging workplace injuries to employees of the subcontractor allegedly injured on the job. …
Read More Connecticut Supreme Court Upholds Decision Requiring Insurer for Subcontractor to Defend Contractor

The federal district court for the Eastern District of Pennsylvania recently denied an insurer’s request to bifurcate its insured’s bad faith claim from the breach of duty to defend claim for purposes of discovery and trial. …
Read More Federal Court Denied Insurer’s Request to Bifurcate Insured’s Bad Faith Claim from Breach of Contract Claims

On July 2, 2008, United Health Group announced that it has reached a tentative agreement to settle a federal securities class action lawsuit relating to its historical stock options practices.  The $895 million settlement is the largest settlement of any stock option backdating securities class action to date. …
Read More United Health Group Announces $895 Million Securities Class Action Settlement

The Mayor’s Office of Film, Theatre and Broadcasting has amended Title 43 of the Official Compilation of Rules of the City of New York, by adding a new Chapter 9, which will regulate the permit and insurance requirements for filmmakers and photographers shooting in New York City. 

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Read More New York Film Shoots Require Permits & Insurance

On July 1, 2008, the Rhode Island Supreme Court ruled that the public nuisance suit filed by the state’s attorney general against various former lead pigment manufacturers, that resulted in a jury verdict against the manufacturers, should have been dismissed by the trial justice. …
Read More Rhode Island Supreme Court Rejects Public Nuisance Theory For Lead Paint Poisoning

According to press reports, Tammy Andreycak, a former director of accounting at Le-Nature’s Inc., recently pleaded guilty to multiple fraud charges in the United States District Court for the Western District of Pennsylvania. The charges included bank fraud, wire fraud, conspiracy and filing false income-tax returns, all allegedly taking place between 2003 and 2006. 

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Read More Financial Executive Becomes First Le-Nature’s Employee to Face Criminal Prosecution for Fraud