Regulatory

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U.S. Senator Susan Collins (R-Maine) has introduced a bill, S.2012, in an effort to clarify the application of Section 171 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) to insurance companies. Section 171 (codified at 12 U.S.C. 5371) requires insured depository institutions, depository institution holding companies, and nonbank financial companies to maintain certain capital levels on a consolidated basis (i.e., Basel III global capital standards). …
Read More Senate Bill Would Allow Federal Reserve to Exclude Insurers From Dodd-Frank Consolidated Capital Requirements

In a letter dated November 10, 2013 (the “Letter”) to the United States Senate Banking Committee (the “Committee”), the National Association of Insurance Commissioners (“NAIC”) showed support for Committee members seeking to address the potential confusion regarding capital and leverage requirements for insurers regulated by the Federal Reserve due to being either considered (1) a thrift holding company, or (2) a systemically important financial institution as designated by the Financial Stability Oversight Council. …
Read More Insurance Regulators Make a Plea to the United States Senate Banking Committee Regarding Capital Regulations for Insurers

Storm Shutters

Pursuant to the Connecticut Insurance Code, “[n]o insurer that delivers, issues for delivery, renews, amends or endorses a homeowners insurance policy in this state shall refuse to renew or issue such a policy solely on the basis that the insured or prospective insured has failed to install permanent storm shutters on his or her residential dwelling as a means of mitigating loss from hurricanes or other severe storms.” …
Read More Connecticut Lawmakers Consider Bill that Would Mandate Coverage by Insurers for Homes that Lack Permanent Storm Shutters; Provides Authority for Private Insurers to Offer Flood Insurance Coverage

Earlier in 2014, Governor Andrew Cuomo introduced a series of tax reforms in his budget bill (the “Bill”) which is currently being addressed by the state legislature. …
Read More Potential New York Legislation to Introduce Tax Changes With Respect To Captive Insurers

In Impact Funding Solutions Limited (Impact) v. Barrington Support Services Limited (Barrington) v. AIG Europe Limited (AIG) (third party) [2013] EWHC 4005 (QB), the Court had previously ordered that Barrington (a company providing legal services) pay Impact (a third party litigation funder) £581,353.80 in damages for Barrington’s breaches of a Funding Agreement between Barrington and Impact. Under the Funding Agreement, Impact would provide a loan to Barrington’s clients to fund personal injury claims. …
Read More UK: Case Illustrates Need for Third Party (Rights Against Insurers) Act 2010 to be Enacted

The Financial Conduct Authority (FCA) has fined HomeServe Membership Limited (HomeServe) £30,647,400 for breaching several of the FCA’s Principles of Business. The FCA states its final notice that HomeServe’s failings were “serious, systemic and long running”. …
Read More FCA Imposes Record Fine for HomeServe’s Widespread Breaches of FCA’s Principles of Business