In addition to its core principles and rules, which require insurers to treat their customers fairly, the FSA has powers under the UK’s Unfair Terms in Consumer Contracts Regulations 1999 (Regulations) to challenge firms that use unfair terms in their standard consumer contracts and to require firms to change those terms where necessary.
Regulatory
Connecticut Adopts Captive Legislation
By Troutman Pepper Locke on
On June 2, 2008, Connecticut Governor Jodi Rell signed S.B. 281 into law making Connecticut the latest state to permit the formation of captive insurance companies. S.B. 281 is very similar to the captive insurer statutes of Vermont, currently the largest U.S. domicile for captive insurance companies.
NAIC Considers Proposal to Centralize Insurance Market Conduct Reporting
By Troutman Pepper Locke on
Posted in Regulatory, United States
A proposal to centralize the filing and storage of annual market conduct reports has been approved by the National Association of Insurance Commissioners’ (the “NAIC”) Market Regulation and Consumer Affairs (D) Committee, and is headed to the Executive Committee for consideration. …
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NAIC Adopts a Model Bulletin and Consumer Alert Regarding the use of Senior Designations
By Troutman Pepper Locke on
On June 2, 2008, the National Association of Insurance Commissioners (the “NAIC”) issued a release announcing adoption of a model bulletin (the “Bulletin”) and Consumer Alert (the “Alert”) to help protect seniors from certain abusive sales practices.
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House Subcommittee to Consider Legislation for Formation of Federal Office of Insurance Information
By Troutman Pepper Locke on
On June 10, 2008, the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises (the “Subcommittee”) will hold a hearing on H.R. 5840, the Insurance Information Act of 2008, regarding the creation of a federal Office of Insurance Information (the “OII”). …
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Florida’s Insurance Commissioner Approves Transfer of 100,000 Citizens Policies to Private Market
By Troutman Pepper Locke on
Florida Insurance Commissioner Kevin McCarty announced last week that the Office of Insurance Regulation (OIR) has approved plans for six insurance companies to remove 100,000 policies from Citizens Property Insurance Corporation, Florida’s state created insurer of last resort. Some of the companies have already begun the take out process, which is scheduled for completion in June. …
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Three Florida Agencies Announce Insurance Settlement with Aon Corp
By Troutman Pepper Locke on
Florida’s Attorney General Bill McCollum, Chief Financial Officer Alex Sink and Insurance Commissioner Kevin McCarty announced on May 23, 2008 that the state reached a settlement with insurance brokerage firm Aon Corp. According to the Florida agencies, Aon had received, and failed to disclose, compensation for placing insurance coverage for Florida policyholders.
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UK: Law Commission Publishes Summary of Responses to Consultation in Relation to Reform of Consumer Insurance
By Troutman Pepper Locke on
In July 2007 the Law Commission and Scottish Law Commission (the Commissions) published a joint consultation regarding misrepresentation, non-disclosure and breach of warranty by the insured. A summary of the 105 responses received in relation to consumer insurance has now been published and can be found by clicking here.
UK: Regulatory Enforcement – FSA Issues a Consultation Paper Regarding Proposals to Amend the Decision Procedure and Penalties Manual and the Enforcement Guide
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
On 27 May, the FSA published a consultation paper on proposed changes to its Decision Procedure and Penalties (DEPP) manual and Enforcement Guide (EG) (the Consultation Paper), which includes proposals that are relevant to its discussion paper on transparency as a regulatory tool: see our blog here. The Consultation Paper fulfils the FSA’s public commitment to review the DEPP and EG annually. …
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UK: The Financial Services Authority (FSA) Launches Discussion Paper (DP) on Increasing Transparency
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
After some delay, the FSA has published a DP which explores the creation of a framework for determining what further information the regulator might publish about firms and industry sectors in order to aid transparency. (See: Discussion paper) This DP reflects the FSA’s strategic priorities for 2008 and 2009 (See: UK: New Business Plan for FSA)