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. 

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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. 

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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. 

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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. 

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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

On May 13, 2008, the Senate passed its version of the Flood Insurance Reform and Modernization Act of 2007 (the “Act”) that would extend the National Flood Insurance Program (“NFIP”) through 2013.  The NFIP is set to expire in September unless renewed. 

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Read More Senate Extends NFIP Without Windstorm Coverage

On 12 May 2008 the Comité Européen des Assurances (CEA) and the American Council of Life Insurers (ACLI) issued a joint statement calling for the formation of an E.U.-U.S. bilateral forum on insurance and reinsurance issues. 

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Read More EU/US: European and US Insurance Bodies Call for Bilateral Forum

As the general insurance comparison website industry has expanded in recent years, the FSA has carried out a fresh review into general insurance comparison websites (the review). This fresh review comes in light of a study, commissioned by the British Insurance Brokers’ Association (BIBA), which showed potential for serious consumer detriment across insurance comparison websites. 

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Read More UK: Regulatory: The Financial Services Authority (FSA) Calls for Fairness in Insurance Comparison Websites