Last month, Colorado Governor Bill Ritter signed a bill that will permit the Department of Regulatory Agencies and the Division of Insurance (the “Division”) to compel payment to consumers who have been wronged by the unlawful business practices of insurance companies and their agents.   House Bill 08-1228 (the “Bill”) holds insurers financially accountable for the unfair business acts of an insurance agent authorized to sell a product or plan of the insurer, if the insurer knew or should have known about the unfair business practice. …
Read More Colorado Governor Signs Insurance Consumer Protection Bill

Before closing its legislative session on May 2nd, the Florida House and Senate unanimously approved Senate Bill 648 (“SB 648” or the “Bill”) addressing insurable interest requirements with respect to life insurance policies.  The Bill is different from the NAIC and NCOIL Viatical Settlement Models, but addresses many of the same issues surrounding stranger owned life insurance arrangements (“STOLI”). 

…
Read More Florida Insurable Interest Bill Passes the House and Senate

Before closing its legislative session on May 2nd, both of Florida’s legislative chambers unanimously approved Senate Bill 2082 (“SB 2082” or the “Bill”) addressing suitability in annuity sales.  The Bill is based on the NAIC Suitability in Annuity Transactions Model Regulation, as amended in 2006, which requires that life insurance companies ensure that their annuity products are marketed and sold to suitable parties. 

…
Read More Florida Approves Annuity Suitability Bill

The Second Circuit Court of Appeals recently ruled that a putative securities class action brought under New York’s state consumer fraud law should be removed to federal court under the Class Action Fairness Act of 2005 (CAFA). 

…
Read More Issue of First Impression: Second Circuit Holds That Federal Court Has Jurisdiction Over New York State Consumer Fraud Law Claim Under CAFA

On May 9, the New York Insurance Department (the “Department”) issued Circular Letter No. 12 (2008), entitled “Cancellation of Municipal Bond Insurance Policies,” (the “Circular Letter”) in which the Department states that U.S. municipal bond issuers (the “Issuers”) may cancel bond insurance policies under certain conditions. 

…
Read More New York Insurance Department Approves Cancellation of Bond Insurance Policies

On May 8, the Alabama Legislature passed a bill that will open the residential homeowners’ insurance market along the Alabama coast to captive insurance companies by allowing them to write direct business in certain areas.  The move is intended to increase capacity in that market by allowing coastal cities or other groups to form their own insurance companies. 

…
Read More Alabama Passes Captive Bill

The FSA has delayed, for a second time, a planned DP on regulatory transparency. The DP, originally due out in April, was planned for publication this week but will not be available until “mid-year”. This was revealed in a speech entitled ‘Principles-Based Regulation – Lessons from the Sub-Prime Crisis’ by Hector Sants, at a FSA Securities and Investments Institute Annual Conference on 15 May 2008. 

…
Read More UK: Financial Services Authority (FSA) has Postponed Discussion Paper (DP) on Regulatory Transparency

On 13 May 2008 the European Commission and the United States issued a joint statement through the Transatlantic Economic Council (TEC), committing themselves to reaching the shared objective of economic integration. This followed a TEC forum on insurance issues such as US reinsurance collateral requirements, the EU’s Solvency II directive and the US Treasury Department’s recent recommendation of an optional federal charter system for the insurance industry. 

…
Read More EU and US Officials Pledge Level Insurance Playing-Field

On 30th April 2008, the Treasury Committee of the House of Commons announced (press notice no. 42) that it is to undertake an inquiry into OFCs as part of its ongoing review of  financial stability and transparency. …
Read More UK: Treasury Committee Announces New Inquiry into Offshore Financial Centres (“OFCs”)

The Delaware Chancery Court recently held that a corporation could unilaterally amend its by-laws to limit or repeal a director’s advancement right, provided that the director’s advancement right had not already vested prior to such amendment. …
Read More Delaware Chancery Court: Corporation May Unilaterally Limit or Repeal Director’s Right to Advancement