Citing the need for additional capacity in the bond insurance market and the desire to move away from the rating system currently used for municipal bonds, California Treasurer Bill Lockyer has proposed using state pension funds to form a state-owned bond insurer. 

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Read More California Contemplating Formation of Bond Insurer

A Massachusetts Superior Court recently ruled that embattled lender Fremont Investment & Loan (“Fremont”) must obtain written consent from the Massachusetts Attorney General’s office before foreclosing on loans in the state. 

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Read More Fremont Must Get Attorney General’s Permission Before Foreclosing Loans In Massachusetts

The Financial Services Authority (FSA) has published a consultation paper (CP 08/6**) in respect of a review of the provisions of the Client Assets Sourcebook (CASS). Following implementation of the Markets in Financial Instruments Directive (MiFID) on 1 November 2007, CASS was expanded from five to eight chapters and two separate regimes apply depending on whether firms conduct MiFID and/or non-MiFID business. …
Read More FSA Consultation: The Client Assets Sourcebook

In this space approximately six weeks ago (click here), we reported on the failure of over $100 million in auctions concerning auction rate securities and cautioned that, “[r]egardless of the cause, the continued blossoming of the credit crisis should be of significant interest to insurers and reinsurers because failures in other areas of the debt markets could potentially lead to D&O and E&O claims similar to those seen in connection with the subprime mortgage crisis.” 

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Read More Auction Rate Securities Issues Proliferate

Last week, Ohio Governor Ted Strickland signed into law House Bill 125, dubbed by supporters the Healthcare Simplification Act, which sets restrictions on the contracting rights between physicians and health insurers when negotiating reimbursement arrangements. …
Read More Ohio Reforms Rules for Healthcare Provider Reimbursement Contracts

Former New York Governor Eliot Spitzer signed legislation this past month that requires annual mailings to New York State homeowners on how to obtain flood insurance coverage with the National Flood Insurance Program (“NFIP”). 

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Read More New Yorkers To Receive Annual Flood Notices

Jeanne Kohler (New York) and Antony Woodhouse (London) of Edwards Angell Palmer & Dodge are attending the Brokers and Reinsurance Markets Association Committee Rendezvous in Naples, Florida to deliver presentations on US and UK legal developments, respectively. …
Read More Report from Brokers and Reinsurance Markets Association Committee Rendezvous in Naples, Florida

On March 26, 2008, New Jersey Governor, Jon Corzine, signed into law Assembly Bill 1586, sponsored by Assemblyman Neil Cohen.  The new legislation prohibits unfair discrimination by life insurance companies against individuals based on their travel plans by expanding the definition of unfair discrimination to include “failing to issue, extend, or renew a life insurance policy, or fixing the rates, terms, or conditions of the policy based on an individual’s intent to travel abroad, unless the decision is based on sound actuarial principles.” …
Read More New Jersey Prohibits Travel Discrimination in Life Insurance Policies

The Middle East’s “retakaful” market–reinsurance covering takaful insurance (direct insurance that complies with Islamic law)–continues to expand dramatically.  Takaful insurers are required to purchase reinsurance from companies that comply with Islamic law, unless such coverage is unavailable from those companies. …
Read More Retakaful Market Expanding By Leaps and Bounds

An Illinois federal court recently granted an insurer’s motion for judgment on the pleadings based on an insured v. insured exclusion, which the court found was triggered by a claim brought “on behalf of” the insured by the insured’s receiver. 

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Read More Illinois Federal Court: Insured v. Insured Exclusion Precludes Coverage For Action Brought By Receiver