Reps. Dennis Moore (D-Kan.) and Scott Garrett (R-N.J.) recently announced their intention to reintroduce the Nonadmitted and Reinsurance Reform Act (the “NRRA”). As we previously reported here and here, the NRRA would establish national standards on how states may regulate and tax surplus lines insurers and also sets national standards concerning the regulation of reinsurance.
Read More House of Representatives to Reintroduce the Nonadmitted and Reinsurance Reform Act
Excess and Surplus Lines
NJ Supreme Court Finds Umbrella Policy Issued by Excess/Surplus Lines Carrier Not Subject to Automatic Renewal Statute
By Troutman Pepper Locke on
The New Jersey Supreme Court has held that an umbrella policy issued by an excess/surplus lines insurer was not subject to the state’s automatic renewal statute. New Jersey has a statute which provides that no policy shall be “nonrenewed” on its expiration date unless a valid written notice of nonrenewal has been sent to the insured.
New York Insurance Department Issues Circular Letter Regarding Late Notice Legislation, Which Takes Effect on January 17, 2009
“[A]ll liability policies” issued or delivered in New York on or after January 17, 2009 will be subject to the recent Legislation promulgated under Chapter 388 of the Laws of 2008 (the “Legislation”). The New York Insurance Department (“Department”) has issued Circular Letter No. 26 (2008), dated November 18, 2008, to remind liability insurers writing property/casualty policies of the changes resulting from the new law, and also to clarify certain aspects of the Legislation.
New York Insurance Department Issues Circular Letter Summarizing Late Notice Legislation and Advising Insurers to Promptly Revise and File Policy Forms Conforming With New Requirements
The New York Insurance Department has now issued Circular Letter No. 26 (2008) dated November 18, 2008 to remind liability insurers writing property/casualty policies of the changes resulting from the new law, which takes effect on January 17, 2009, and also to clarify certain aspects of the Legislation.
Fifth Circuit Rejects Excess Insurer’s Temporal and Subject Matter Stacking Arguments
By Troutman Pepper Locke on
The United States Court of Appeals for the Fifth Circuit recently rejected an excess insurer’s arguments in favor of temporal and subject matter stacking and affirmed summary judgment dismissing its subrogation claims against certain primary insurers.
Read More Fifth Circuit Rejects Excess Insurer’s Temporal and Subject Matter Stacking Arguments
Third Circuit Upholds Liability of PricewaterhouseCoopers in Ambassador Insolvency
The United States Court of Appeals for the Third Circuit recently upheld a $182.9 million judgment against PricewaterhouseCoopers, LLP (“PWC”) for allegedly contributing to the failure of Ambassador Insurance Company (“Ambassador”) through negligent auditing.
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Read More Third Circuit Upholds Liability of PricewaterhouseCoopers in Ambassador Insolvency
NAIC Surplus Lines Task Force Makes Progress Despite Likelihood that the Bill will not Pass this Year
During the National Association of Insurance Commissioners (“NAIC”) Fall Meeting in National Harbor, Maryland, the Surplus Lines Task Force (“Task Force”) chaired by Commissioner James Donelon (LA) received a report on the status of the proposed 2007 Nonadmitted and Reinsurance Reform Act (H.R. 1065/ S. 929) (the “Bill”).
Federal Appeals Court Vacates Summary Judgment Decision Where Conflicting Evidence Regarding Principal Place Business of Insured Precluded Determinative Choice of Law Decision
The United States Court of Appeals for the Seventh Circuit recently remanded a choice-of-law determination to the district court for further proceedings because there was conflicting evidence about the principal place of business of one insured and the conflict could not be resolved on the paper record.
Read More Federal Appeals Court Vacates Summary Judgment Decision Where Conflicting Evidence Regarding Principal Place Business of Insured Precluded Determinative Choice of Law Decision
The National Association of Registered Agents and Brokers Reform Act of 2008 (H.R. 5611) receives support from the Connecticut Insurance Commissioner
Connecticut Insurance Commissioner Thomas Sullivan recently endorsed proposed federal legislation to streamline the insurance producer licensing process and establish uniformity in the qualifications that need to be met in order to conduct business in multiple states. According to Sullivan, producer regulation is an area where there is a need for federal legislation.
Read More The National Association of Registered Agents and Brokers Reform Act of 2008 (H.R. 5611) receives support from the Connecticut Insurance Commissioner
NAIC Comments On Proposed Reforms Of Liability Risk Retention Act
Nancy Praeger, President of the National Association of Insurance Commissioners (“NAIC”), sent a letter last month to the U.S. House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (the “Subcommittee”) and the co-sponsors of H.R. 5792, Increasing Insurance Coverage Option for Consumers Act of 2008 (the “Bill”).
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Read More NAIC Comments On Proposed Reforms Of Liability Risk Retention Act