The Louisiana Supreme Court has endorsed pro rata allocation of defense costs associated with hearing loss cases across triggered policy periods. The decision reversed a 2015 appellate ruling that pro rata allocation applied to the costs associated with the duty to indemnify but not the duty to defend, making a…
Read More Louisiana Extends Pro Rata Allocation to Defense Costs

“Quota Share Reinsurance”

A form of reinsurance whereby the reinsurer accepts a stated percentage of each and every risk underwritten by the reinsured company within a defined category of business and within the underlying insurance contract parameters on a pro rata basis and is usually paid a pro rata portion…

Read More InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “Quota Share Reinsurance”

“SAP”

Insurance statutory accounting principles which are codified in the National Association of Insurance Commissioners’ Accounting Practices & Procedures Manual, and sometimes by “permitted practices” of the state insurance department; the term is oftentimes used as an accounting reference for insurance company financial matters in a stock purchase agreement and…

Read More InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “SAP”

During last few years, approximately 23 states passed seemingly favorable, pro ecommerce insurance laws, primarily at the behest of the personal lines property and casualty insurance industry, namely new state insurance code statutes that allow an insurer to deliver an insurance policy to a policyholder simply by posting an electronic…
Read More Locke Lord’s Brian Casey, Partner in the Atlanta office, Authors “Where’s The E-Sign? A Primer On Electronic Signature Laws” for Law360 on August 30, 2016

The Illinois Department of Insurance (“DOI”) has issued a notice of proposed rules to create 50 Ill. Adm. Code 941 regarding misrepresentations and false warranties. A previous version of the proposed rule was proposed in December of 2014 and withdrawn in October 2015. The DOI reason for the withdrawal was…
Read More Illinois Department of Insurance Proposes Rule on Misrepresentations and False Warranties

The Wyoming Supreme Court ruled on August 17, 2016 that an insurer “must be prejudiced before being entitled to deny coverage when the insured has failed to give notice ‘as soon as practicable.’” In addressing a certified question from the 8th Circuit Court of Appeals, the Wyoming opinion said it…

Read More Wyoming Requires Insurer Prejudice for Late Notice

Illinois State Treasurer Michael Frerichs has called for statewide hearings to educate the public on how life insurance companies avoid paying death benefits. The first hearing is scheduled for August 17th in Normal, Illinois. According to Frerichs, since 2011, the Illinois State Treasurer’s office has identified more than $550 million…
Read More Illinois Treasurer Holds Statewide Hearings on Life Insurers that Do Not Pay Death Benefits

“Audit Premium”

Any premium that is determined to be payable from (Audit Additional Premium) or to (Audit Return Premium) a policyholder as a result of a policy provision that permits the insurance company to base the ultimate premium to be charged for the policy on auditable criteria at the end…

Read More InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “Audit Premium”

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”