On August 2, 2016, the Office of Foreign Assets Control (“OFAC”) issued Findings of Violations of the Foreign Narcotics Kingpin Sanctions Regulations against AXA Equitable Life Insurance Company and Humana Inc. In both cases, OFAC found that the companies did not screen their policyholders and beneficiaries against the OFAC Specially…

Read More OFAC Issues Findings of Violations of the Foreign Narcotics Kingpin Sanctions Regulations against a Health Insurer and Third Party Administrator

“Retrocessionaire” noun/retro-cession-air

A reinsurance company or insurance company that assumes reinsurance risk ceded by another reinsurance company or insurance company acting as a primary reinsurer of an insurance company.Read More InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “Retrocessionaire”

Earlier this week, European Union (“E.U.”) and U.S. representatives met in Brussels to continue to discuss a potential agreement concerning insurance and reinsurance matters. This is the third such meeting since the U.S. Department of the Treasury and the Office of the U.S. Trade Representative announced last November their intent…
Read More U.S., E.U. Representatives Continue to Work on Covered Agreement for Insurance and Reinsurance Measures

As we recently reported in Law360, the surplus lines industry is increasingly serving as a mechanism to provide evolving and complex coverage to new ideas and products throughout the world. This week, Insurance Business America (“IBA”) explored other innovations and legislative changes that may provide opportunities for surplus lines…

Read More Surplus Lines Expansion: Industry Comments on New Opportunities

The Texas Department of Insurance (“TDI”) has posted a 48-page working draft of new surplus lines rules. Specifically, TDI issued an informal notice on July 22, 2016 reflecting several modifications to Title 28, Texas Administrative Code Chapter 15—the regulations which implement Texas’s surplus lines insurance laws found in Texas Insurance…

Read More New Texas Surplus Lines Rules Drafted by Texas Department of Insurance

This week, the National Association of Insurance Commissioners (“NAIC”) provided an update on its TRIA data call initiative (the “Data Call”). As we previously reported here, the NAIC has been in discussions, separate and apart from the Federal Insurance Office, to initiate its own Data Call to better understand…
Read More TRIA Update: NAIC Data Call Imminent

Based on the policy language before it, the U.S. Court of Appeals for the Seventh Circuit recently found that an insurer has a duty to defend a pharmaceutical distributor in a lawsuit brought by West Virginia’s attorney general alleging that drug distributors contributed to the rise of so-called “pill mills”…
Read More Seventh Circuit: Insurer Has Duty To Defend West Virginia’s Suit Against Drug Distributor Seeking To Recover Amounts Expended By The State Caring For Drug-Addicted Citizens

The Texas Department of Insurance (TDI) recently adopted amendments to 28 TAC §7.209 (Rule 7.209) relating to the requirements for Form A filings in connection with the acquisition or change of control of Texas domestic insurers. These amendments became effective July 18, 2016, and are the first significant revisions to…

Read More New Texas Form A Requirements and Confidentiality Provisions Adopted by Texas Department of Insurance

The Illinois Department of Insurance recently issued a bulletin requiring all companies to obtain independent third party background investigation/verification reports from nationally recognized vendors. The reports must be submitted with any required filing of biographical affidavits of officers and directors including in acquisitions. The vendor should submit the background investigation/verification…

Read More Illinois Department of Insurance Requires Independent Third Party Background Investigation Reports

This year the CEA will buy more reinsurance than in prior years, but the CEA may be casting an eye towards revenue bonds as part of its overall claims-paying resources, believing that a bond program could be more effective than reinsurance.

The CEA was formed as the result of the…

Read More The California Earthquake Authority (CEA) is Considering Purchasing Cat Bonds over Reinsurance