Last month, the Senate began debate on the first comprehensive climate change bill, known as the Lieberman-Warner Climate Security Act (the “Bill”).  The Bill would rely on a “cap and trade” program (the “Program”) to give power plants, factories and refineries financial incentive to reduce their greenhouse gas emissions.  Under the Bill, the Program would first set a cap on the total carbon dioxide emissions allowed in the United States. 

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Read More Senate Debates Global Warming Bill

Last month, New Jersey Senate Majority Leader Stephen Sweeney reintroduced the New Jersey Consumer Catastrophe Preparedness and Protection Bill, S.2089 (the “Bill”), which, if enacted, would create the New Jersey Catastrophe Fund (the “Fund”). 

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Read More New Jersey Considers Catastrophe Fund

Plaintiffs in a mutual fund class action have sought rehearing en banc after a ruling by the United States Court of Appeals for the Seventh Circuit rejected the so-called Gartenberg test, which looks to the “reasonableness” of advisory fees charged by investment advisors. …
Read More Plaintiffs Petition Seventh Circuit For Rehearing on Ruling Rejecting Gartenberg Test

The Enforcement Section of the Massachusetts Securities Division recently filed an administrative complaint against UBS Securities, LLC and UBS Financial Services, Inc. alleging conflicts of interest and use of misleading sales practices in the marketing of auction rate securities (“ARS”). 

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Read More Massachusetts Files Securities Fraud Suit Against UBS Regarding Auction Rate Securities

The issues of contingent commissions and producer compensation disclosure has reached the forefront of New York regulatory law, as the Supreme Court of New York, Appellate Division, First Department recently ruled in favor of the insurance industry in the matter of People v. Liberty Mut. Ins. Co. 

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Read More The New York State Insurance Department and New York Attorney General to Hold Public Hearings Regarding Producer Compensation

According to the Insurance Information Institute, the cost of homeowners insurance along the East and Gulf coasts has increased by as much as 100% since 2004.  The Wall Street Journal (WSJ) recently reported that regulators and other critics contend that this increase in premiums is due in part to insurers’ use of a “computerized catastrophe model” that assumes climate change resulting in more frequent and more severe hurricanes. 

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Read More Insurers Questioned On Use Of Rate Model Assuming Increase in Weather Related Catastrophes

On June 26, 2008, the Securities and Exchange Commission (“SEC”) published proposed Rules 151A and 12h-7 (“Proposed Rules”).  The Proposed Rules, if adopted, would clarify the status of indexed annuities (i.e. annuities for which payments to the purchaser are dependent on performance of a securities index) under the federal securities laws, and would provide insurance companies an exemption from reporting requirements under the Securities Exchange Act of 1934 (“Exchange Act”) with respect to such annuities and certain other securities issued by insurance companies that are registered under the Securities Act of 1933 (“Securities Act”) and regulated as insurance under state law. 

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Read More SEC Proposes a New Rule to Regulate Indexed Annuities

Twenty one years after the New York Insurance Exchange Commission (the “Exchange”) closed its doors for trading, New York State officials have begun to consider reviving this unique market.  The Exchange was created in 1979 with the enactment of Regulations 89, 89-A and 89-B. …
Read More New York State Considering Resurrection of the Insurance Exchange

In October, www.insurereinsure.com reported on a regulation being proposed by New York Superintendent of Insurance Eric Dinallo that would eliminate the existing collateral requirements imposed on foreign and alien reinsurers operating in New York (click here to view prior post). 

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Read More Update on New York’s Proposed Change in Collateral Requirements on Foreign and Alien Reinsurers

The Code requires ABIR’s and BIRBA’s members to provide certainty in coverage terms and conditions to both policyholders and ceding insurers. 

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Read More Bermuda: The Association of Bermuda Insurers and Reinsurers (ABIR) and the Bermuda Insurance and Reinsurance Brokers Association (BIRBA) Announce the Adoption of a Contract Certainty Code (the Code)