This updates our June 30, 2010 blog posting. The New York Insurance Department (“NYID”) issued a draft circular letter last year regarding the implications of excess withdrawals from annuities with guaranteed minimum withdrawal benefits (“GMWB”). On February 7, 2011, the NYID finalized and issued the circular letter as Circular Letter No. 5 (“Circular Letter”).
Read More New York issues Circular Letter requiring Consumer Disclosures Explaining Excess Withdrawals from Annuities
New York Developments
New York Federal Court Rules That No Contractual Privity Exists Between Third Party Claimant and Reinsurer
By Troutman Pepper Locke on
In 2009, we reported on an action brought by Callon Petroleum Company (“Callon”) against National Indemnity Company (“NICO”) to recover for a judgment Callon obtained against NICO’s cedent, Frontier Insurance Company (“Frontier”). …
Read More New York Federal Court Rules That No Contractual Privity Exists Between Third Party Claimant and Reinsurer
New York Appeals Court Dismisses Suit Against MBIA Inc. Over Bond Insurer’s Financial Restructuring
A New York appeals court recently dismissed one of two lawsuits filed against MBIA Inc. (“MBIA”) by more than a dozen major financial institutions concerning the bond insurer’s financial restructuring. The plaintiffs – owners of insurance policies issued by MBIA for structured finance products, including residential mortgage-backed securities – claimed that the bond insurer’s split into two units was intended to defraud policyholders. …
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Second Circuit Denies Cedent’s Motion for a Rehearing in Follow the Fortunes Case
By Troutman Pepper Locke on
We recently blogged about the Second Circuit’s decision in Arrowood Surplus Lines Ins. Co. v. Westport Ins. Corp., No. 10-cv-0397 (2d Cir. 2010), in which an appellate panel held that a reinsurer had no obligation to indemnify its cedent for losses outside the scope of the treaty at issue. Click here to review a copy of that blog post.
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New York Federal Judge Provides Interesting Insights Regarding Arbitration and “Manifest Disregard of the Law”
By Troutman Pepper Locke on
In Goldman Sachs Execution & Clearing, L.P. v. The Official Unsecured Creditors’ Committee of Bayou Group, LLC, et al., Slip Copy, 2010 WL 4877847 (S.D.N.Y. 2010), the court denied petitioner’s motion to vacate a $20.580 million award obtained in a FINRA arbitration by The Official Unsecured Creditors’ Committee of Bayou Group (“OUCCBG”). …
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Federal Court Orders Insurer to Produce Reinsurance Information, Despite Acknowledging Split Among Courts on the Issue
By Troutman Pepper Locke on
Suffolk Federal Credit Union (“SFCU”) brought an action against Cumis Insurance Society to recover certain losses arising under a fidelity bond. During discovery, SFCU served interrogatories, that included a request that Cumis disclose the identity of any reinsurance agreement that might indemnify Cumis for the losses at issue. …
Read More Federal Court Orders Insurer to Produce Reinsurance Information, Despite Acknowledging Split Among Courts on the Issue
UPDATE: New York Governor Formally Announces Plan To Merge Insurance Department with Banking Department
By Troutman Pepper Locke on
As expected, New York Governor Andrew Cuomo announced during his State of the State address plans to merge the Insurance Department with the Banking Department and Consumer Protection Board in order to create a new Department of Financial Regulation. Governor Cuomo stated that the merger is necessary to properly regulate modern financial services organizations and the “primary mission of this new agency will be to stand up for consumers, protect them against predatory lending and unlawful foreclosure practices, and provide access to good, honest and capable financial services at competitive rates.” …
Read More UPDATE: New York Governor Formally Announces Plan To Merge Insurance Department with Banking Department
BREAKING NEWS: New York Governor To Propose Merger of Banking and Insurance Departments
By Troutman Pepper Locke on
Posted in New York Developments, Regulatory
According to reports, it is anticipated that incoming New York Governor Andrew Cuomo will announce during his State of the State Address tomorrow, January 5, 2011, plans to merge the Insurance Department and Banking Department into a single agency in an effort to reduce costs and improve efficiency. Such a merger would require approval from the New York State Legislature before it would become effective. …
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Second Circuit Finds That Service of Suit Provision in Treaties Unambiguously Waived Reinsurer’s Right of Removal
By Troutman Pepper Locke on
The U.S. Court of Appeals for the Second Circuit recently affirmed a district court decision that remanded to state court a lawsuit asserted by the Liquidator of Midland Insurance Company against its reinsurer, Dunav Re, finding that the Service of Suit clause in the reinsurance treaties at issue unambiguously waived Dunav Re’s right to remove the dispute to federal court. …
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Second Circuit Determines Party Waived its Right to Arbitrate
By Troutman Pepper Locke on
Recently, the U.S. Court of Appeals for the Second Circuit affirmed a district court’s ruling denying the motion of plaintiffs-appellants (collectively “LSED”) to compel arbitration of a dispute with Merrill Lynch, Pierce, Fenner & Smith Inc. (“MLPFS”), finding that LSED waived its right to arbitrate by litigating the case for nearly a year before filing its motion. …
Read More Second Circuit Determines Party Waived its Right to Arbitrate