New York Developments

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As we last discussed here, the Independent Insurance Agents and Brokers of New York (“IIABNY”) and the Council of Insurance Brokers of Greater New York (“CIBGNY”) jointly filed an Article 78 proceeding to block the implementation of Insurance Regulation 194, which requires insurance producers to disclose certain information regarding their compensation to their clients.  Regulation 194 is scheduled to take effect on January 1, 2011. …
Read More New York Court Rules in Favor of Producer Compensation Disclosure Regulation

As we first covered here, Ambac Financial Group Inc., the parent of the ailing Wisconsin-domiciled bond insurer Ambac Assurance Corp., filed for Chapter 11 bankruptcy relief with United States Bankruptcy Court for the Southern District of New York on November 8, 2010.  Ambac’s troubles began when the mortgage-backed securities market collapsed in late 2008, causing a cascade of claims on policies issued by the bond insurer to protect creditors in the event of a default by borrowers. …
Read More During Hearing to Consider Ambac’s Rehabilitation Plan, Insurance Regulator Reveals that Liquidation of the Bond Insurer was Considered

A five-judge majority of the New York Court of Appeals has declared that a person may procure an insurance policy on his or her own life and immediately transfer that policy to one without an insurable interest, regardless of the purchaser’s intent. …
Read More New York Court of Appeals Approves of Stranger-Owned Life Insurance Contracts, For Now

On November 5, 2010, the New York Insurance Department (the “Department”) issued Circular Letter No. 18 (2010) (the “Circular Letter”) setting forth clarification on the implementation of and compliance of insurance producers and authorized insurers with 11 NYCRR 30 (Regulation 194). …
Read More Industry Group “Underwhelmed” by New York Insurance Department Circular Letter Clarifying the Producer Compensation Transparency Rule

Effective October 1, 2010, the New York Insurance Department (the “Department”) has authority to review health insurance rate requests before they go into effect.   Before this “prior approval” authority went into effect, health insurers could simply increase their rates by filing with the Department and notifying customers of the change under a system known as “file and use.” …
Read More NYID Implements “Prior Approval” of Health Insurance Rates

EAPD is hosting a complimentary webinar on Thursday, October 28, 2010 on the government investigations of lenders’ foreclosure practices.  Please click here to register for this one hour program to learn more about what the exposure implications are for financial institutions. …
Read More The Brewing Foreclosure Crisis – An EAPD Complimentary Webinar

The U.S. District Court in Manhattan recently dismissed a securities class action brought by a proposed class of investors, alleging that the company and two of its senior officers violated Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and SEC Rule 10b-5 by making false or materially misleading disclosures about the company’s risk management and exposure to mortgage-related securities. …
Read More District Court Dismisses Subprime Class Action Case With Prejudice

NGC Network Asia, LLC (“NGC”) and Pacific Group International, Inc. (“PAC”) were parties to an arbitration held in New York.  After an award was rendered in NGC’s favor, it commenced an action in the U.S. District Court for the Southern District of New York and moved to confirm.  PAC opposed the motion and cross moved to transfer, stay or dismiss the action. …
Read More Federal Court Finds That the Proper Venue for a Motion to Confirm an Arbitration Award is the District in Which the Hearing Was Held, Not Where the Award was Signed