Last week, an NAIC task force moved forward in recommending a cybersecurity “bill of rights” that insurance regulators could provide consumers, essentially creating an expectation of notice of a breach “never more than 60 days” after a breach, and the right to one year of free credit monitoring. Insurance industry…

Read More NAIC Cybersecurity “Bill of Rights” Wrong to Many Insurers

In its commitment to address risks of Global Systemically Important Insurers (“G-SIIs”) on the global financial system, the International Association of Insurance Supervisors (“IAIS”) recently announced completion of its development of the Higher Loss Absorbency (“HLA”) requirement for G-SIIs. The HLA was established to help reduce the impact of the…
Read More International Association of Insurance Supervisors Completes Higher Loss Absorbency Requirement for Global Systemically Important Insurers

An Illinois trial court recently addressed the issue of whether an insurer exhausted its limits of liability in paying nearly $90 million for an insured’s defense and indemnity associated with asbestos bodily injury claims.  CNA issued umbrella and excess insurance to Borg-Warner Corporation and contended that the occurrence limits of…
Read More Illinois Court: Multi-year Policy Limits Applied To Entire Policy Period, Not Annually, And Payments For Potentially Covered Claims Established Exhaustion

The majority of states have now adopted the ORSA Model Law and the first filings are officially due by the end of 2015.  The NAIC has been conducting an ORSA pilot project for the last 3 years and many companies participated.  The participating companies received valuable input regarding their ORSA …
Read More Many Insurers to be Filing ORSA’s for the First Time in the 4th Quarter

This month, the NAIC set forth a variety of proposals relating to changes risk-based capital (“RBC”) requirements, as well as treatment of investment affiliates.  In particular, the NAIC seeks to require life insurers to actively disclosure how the use of captives to manage their A-XXX risks would impact the insurer’s…
Read More NAIC Proposes Changes to Life Insurer Disclosure Requirements and Treatment of Investment Affiliates

On October 6, 2015 California’s Governor Jerry Brown signed into law Senate Bill 575, requiring annual notifications of certain nonforfeiture benefits under long-term care insurance contracts. Under current law, an insurer is required to offer, at the time of application for a long-term care insurance contract, an option to purchase…

Read More California Governor Signs Long-term Care Insurance Bill

In Boyle v. Zurich American Insurance Company, 472 Mass. 649 (2015), decided on September 14, 2015, the Massachusetts Supreme Judicial Court (the “SJC”) indicated, to the dismay of the insurance defense bar, that the right to a defense under a liability insurance policy is not merely contractual, but rather…
Read More Massachusetts Highest Court Issues Important Decision On Insurers’ Duty to Defend and Liability for Multiple Damages

On September 29, 2015, the Bank of England’s Prudential Regulation Authority (“PRA”) issued a report analyzing the impact of climate change on the UK’s insurance sector. The report was based on survey responses from thirty PRA regulated insurance companies, four roundtable discussions with representatives from the insurance industry and discussions…

Read More The UK’s PRA Assesses Climate Change Risks to the Insurance Industry

The U.S. Court of Appeals for the Third Circuit has found that post-award objections to an arbitrator were waived because the party had constructive knowledge of the arbitrator’s insufficient disclosure. The court held that a party should be precluded from challenging an award where malfeasance, ranging from conflicts-of-interest to non-disclosures…
Read More Third Circuit Applies Constructive Knowledge Standard And Finds Waiver Of Arbitration Panel Challenge

The Nevada Supreme Court has found that an insurer must provide independent counsel for its insured when a conflict of interest arises between the insurer and the insured, adopting California’s “Cumis Counsel” rule. While Nevada law allows “dual representation” such that insurer-appointed counsel represents both the insurer and the insured,…
Read More Independent Counsel Required: Nevada Supreme Court Follows California’s “Cumis Counsel Rule”