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As previously reported here, the National Flood Insurance Program (“NFIP”) is due to expire at the end of this month.  With the House of Representatives and Senate still at odds over key provisions, Rep. Barney Frank (D-MA) has introduced a bill, H.R. 6965, which would temporarily extend the NFIP for an additional seven months. …
Read More Congress Still Unable to Agree on NFIP, Considers Short-Term Extension

The FSMT has handed down its decision in the case of Asgar Ali Ravjani (trading as Astrad Finance) v Financial Services Authority, which involved the failure to disclose a discharged bankruptcy to the FSA. …
Read More UK: Decision of the Financial Services and Markets Tribunal (FSMT) Emphasises the Importance of Disclosing All Relevant Information to the FSA

In the wake of American International Group, Inc.’s (“AIG”) request for a $40 billion bridge loan from the Federal Reserve, New York Governor David Patterson has announced that AIG has been granted “special permission to access $20 billion of capital in its subsidiaries to free up liquidity.”  This will enable, in essence, AIG to make a bridge loan to itself. 

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Read More BREAKING NEWS: AIG Receives Special Permission to Access $20 Billion of Subsidiaries’ Capital

On 12 September 2008, Helen Clark attended the British Insurance Law Association (BILA) Annual Conference. The opening session was lead by the Law Commissioner, Mr David Hertzell, who is heading up the Law Commission’s wide scale review of Insurance Contract Law Reform. …
Read More UK Insurance Contract Law Reform: BILA Annual Conference at Lloyd’s

On September 9, 2008, Florida Insurance Commissioner Kevin McCarty ordered State Farm Florida to issue $120 million in credits or refunds to approximately 98,000 current or former policyholders who did not receive, or who did not apply for, Windstorm Loss Reduction Rating Plan discounts that were available to Windstorm policy holders who made their homes more windstorm resistant. 

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Read More Florida Insurance Commissioner Orders State Farm to Refund $120 Million for Unpaid Windstorm Mitigation Discounts

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

Five motor dealers have been fined more than £175,000 by the FSA for breaches relating to the sale of PPI alongside motor finance (See: FSA fines five motor dealers for PPI failings). A total of 2175 customers were subsequently put at risk as a result of these breaches. 

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Read More UK: The Financial Service Authority (FSA) has Fined Five Motor Dealers for Breaches Relating to the Sale of Payment Protection Insurance (PPI)

Hawaii Insurance Commissioner L.P. Schmidt issued a memorandum to reinsurance intermediaries on September 3, 2008, regarding the licensing requirements for all reinsurance intermediaries.  All reinsurance intermediaries, including nonresident reinsurance intermediary-brokers and nonresident intermediary-managers, must be licensed under Hawaii Insurance Law. …
Read More Hawaii Issues Memorandum to Reinsurance Intermediaries