On February 14, 2008, a divided New York Court of Appeals held that a member of a New York limited liability corporation (often referred to simply as a “LLC”) could bring a derivative lawsuit on behalf of the LLC against the entity’s managers. …
Read More NY Court of Appeals Introduces Derivative Liability Exposure to LLC Managers

The Internal Revenue Service announced on February 20, 2008 that it is withdrawing the proposed IRS Regulation §1.1502-13(e)(2)(ii)(C).  The withdrawn regulation would have disallowed as a current deduction for federal income tax purposes any premium payments to an affiliate captive insurer if the captive received as little as 5% of its total premiums from affiliates on the same consolidated tax return. …
Read More Proposed Captive Tax Deduction Rule Withdrawn by IRS

In Gater Assets Ltd v Nak Naftogaz Ukrainiy [2008] EWHC 237 (Comm), the applicant company, Nak Naftogaz Ukrainiy (NNU), applied to set aside an order permitting Gater Assets Ltd (Gater) to enforce as a judgment a New York Convention arbitration award issued by the International Commercial Arbitration Court of Moscow. 

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Read More UK High Court Dismisses Application to Set Aside Order in Favour of Monegasque Reinsurer Enforcing New York Convention Arbitration Award

Last week, the Supreme Court upheld a Second Circuit decision finding that the Food and Drug Administration’s extensive pre-market approval process for Class III medical devices preempts state law causes of action for injuries allegedly caused by those devices. …
Read More Update: Supreme Court Rules That FDA Pre-Market Approval Preempts State Law Torts

In an important recent decision of the United States Court of Appeals for the Second Circuit, testing the outer reaches of a bankruptcy court’s jurisdiction, In re Johns Manville Corp., 06-2099 (2d Cir. Feb. 15, 2008), the court considered whether claims that are not derivative of a debtor’s liability, but rather seek to recover directly from an insurer for its own alleged misconduct, can be enjoined by the “channeling” mechanism developed by the bankruptcy court. 

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Read More Second Circuit Rules Bankruptcy Court Cannot Enjoin All Claims Against Insurer

As reported here – CEIOPS Meeting Discusses Draft Advice to European Commission on Key Solvency II Issues], the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has now released it’s Consultation Papers of Draft Advice on Aspects of the Framework Directive Proposal related to Proportionality and on Insurance Groups. …
Read More EU: CEIOPS Releases Two Solvency II Consultation Papers

The National Association of Insurance Commissioners (NAIC) issued a press release last week announcing completion of its membership-wide producer licensing assessment.  This assessment, conducted by a group of volunteer regulators, examined and verified compliance with the NAIC’s 2002 reciprocity standards, state adoption of the Producer Licensing Model Act, and adoption of the Uniform Resident Licensing Standards. 

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Read More NAIC Producer Licensing Assessment

Recently, in Nationwide Mutual Ins. Co. v. Randall & Quilter Reinsurance Co., No. C2-07-120 (S.D. Ohio, Jan. 24, 2008), the U.S. District Court for the Southern District of Ohio examined the scope of a court’s authority to confirm arbitration awards and orders under Section 9 of the Federal Arbitration Act (“FAA”). 

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Read More Federal Court Denies Reinsurer’s Motion to Enforce Confidentiality Order, Vacate Arbitration Award

Earlier this month, Rhode Island’s Lt. Governor, Elizabeth Roberts, proposed the Healthy Rhode Island Reform Act of 2008.  Among other things, Part V of the proposed act, commonly known as the “play or pay” proposal, requires employers in Rhode Island to either provide employee health benefits or to contribute to a state fund that will cover the uninsured up to a certain level. …
Read More Rhode Island’s Play or Pay Proposal