The Massachusetts Commissioner of Insurance Nonnie S. Burnes released a Division of Insurance Bulletin on December 20, 2007, which requires that any licensed insurer must, upon the payment of $5,000 or more in the settlement of a third-party liability claim that is delivered to the claimant’s attorney, provide a concurrent written notice to the claimant. 

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Read More Massachusetts Insurance Regulations Now Require Written Notice to Third-Party Liability Claimants of Settlement Payments Sent to Claimant’s Counsel

In Midwest Employers Cas. Co. v. Legion Ins. Co. (In Liquidation), No. 4:07CV870 CDP (E.D. Mo. Nov. 7, 2007), Midwest Employers Casualty Company (“MECC”) sought a declaration that the demand for arbitration from Legion Insurance Company under forty-three reinsurance contracts that did not contain arbitration clauses was null and void. …
Read More Missouri District Court Rules That Suit Against Insurer in Liquidation Can Proceed in Federal Court

A Massachusetts trial court recently ordered a defendant insurer to produce reinsurance agreements during discovery in a coverage dispute.  Neles-Jamesbury, Inc. v. Liberty Mutual Ins. Co., C.A. No. 02-0982A (October 11, 2007). …
Read More Massachusetts Court Orders Discovery of Reinsurance Agreements

A Massachusetts Special Commission recently recommended that Massachusetts create a catastrophe fund to reduce the cost of coastal insurance within the Commonwealth.  Click here to review the Special Commission’s Report. 

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Read More Massachusetts Considering Creation of Catastrophe Fund and Other Reforms to Address Coastal Insurance Problems

Lloyd’s recently issued a press release that it has begun offering a new type of cover – an event cancellation policy that will indemnify insureds for their losses if Christmas is cancelled, postponed, interrupted, curtailed or relocated due to the Grinch’s actions. 

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Read More Lloyd’s Insures Against Grinch

In a matter of first impression under New Jersey law that potentially impacts both the reinsurance and insurance industry and policyholders of insolvent insurance companies, the New Jersey Supreme Court affirmed the appellate division’s ruling that the Fourth Amended Final Dividend Plan (the “FDP”) proposed by the Liquidator for Integrity Insurance Company (“Integrity”) should not be approved because it unlawfully allowed incurred but not reported (“IBNR”) claims to share in the insolvent insurer’s estate. …
Read More Landmark Victory For Reinsurers of Insolvent Integrity Insurance Company

A Pennsylvania appellate court recently reversed a trial court’s ruling that denied a cedent’s motion to compel arbitration, finding that the existence of a service of suit clause in the reinsurance agreement did not render the arbitration clause meaningless. 

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Read More Pennsylvania Appellate Panel Enforces Arbitration Clause in Reinsurance Agreement

Earlier today, President Bush signed into law the Terrorism Risk Insurance Program Reauthorization Act of 2007 (“TRIPRA”), which provides a seven-year extension of the Terrorism Risk Insurance Program, originally created in the wake of September 11 by Terrorism Risk Insurance Act of 2002 (“TRIA”) and extended by the Terrorism Risk Insurance Extension Act of 2005 (“TRIEA”). 

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Read More BREAKING NEWS — President Bush Extends Terrorism Risk Insurance Program

Last week, the South Carolina Insurance Department issued a press release (which you can review by clicking here) announcing a proposed Bulletin that will provide guidelines for captive management companies. …
Read More South Carolina Insurance Department Proposes Bulletin regarding Captive Management Companies

The EC has adopted proposals for a directive and a regulation aimed at modernising and simplifying the VAT rules for financial and insurance services. The proposals contain an updated definition of the exempt financial and insurance services. 

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Read More Value Added Tax (VAT): The European Commission (EC) proposals to modernise the current legislation for financial services and insurance