Vermont Governor Peter Shumlin has signed H. 198, titled the Legacy Insurance Management Act (“LIMA”), in an effort to attract new domestic insurance companies dedicated to run-off business in Vermont. LIMA allows for the formation of Vermont-domiciled insurance companies whose sole purpose is to acquire closed blocks of P&C commercial insurance and reinsurance business from non-admitted companies.
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Regulatory
Validus Wins Round One: Retrocessions Not Taxable Under 26 USC § 4371(3)
By Troutman Pepper Locke on
A federal district court in Washington handed Validus Reinsurance a major win on Wednesday, declaring that the IRS has no authority to assess excise tax on retrocessions. The decision in Validus Reinsurance, Ltd. v. United States of America, No. 13-0109 (D.D.C. Feb. 5, 2014), is available here. …
Read More Validus Wins Round One: Retrocessions Not Taxable Under 26 USC § 4371(3)
UK: Law Commissions Publish Draft Clauses to the Insurance Contracts Bill
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
As part of their ongoing law reform project, the Law Commission and Scottish Law Commission (the Commissions) have published a number of draft clauses relating to the Insurance Contracts Bill as part of a limited consultation. …
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UK: BIBA Manifesto 2014 Highlights Cost of Brokers’ Regulation in the UK
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The British Insurance Brokers’ Association (BIBA) has launched its 2014 Manifesto (available here) in UK Parliament. BIBA addresses its campaigning issues in three ways: delivering for consumers; businesses; and the insurance industry. …
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Colombia: New Rules Applicable to Foreign Insurers
By Troutman Pepper Locke on
Posted in Regulatory
On 6 December 2013, the Colombian Ministry of Finance and Public Credit issued Decree No. 2838 of 2013 (the “Decree”), amending Decree No. 2555 of 2010, regarding the rules applicable to foreign banks and insurance companies in Colombia. …
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EU: EIOPA publishes second Half-Yearly Financial Stability Report for 2013; comprehensive stress tests on the way
By Troutman Pepper Locke on
On 12 December 2013, the European Insurance and Occupational Pensions Authority (EIOPA) published its second Half-Year Financial Stability Report for 2013 (available here). The risk environment described in the second Half-Year report is broadly the same as the environment described in the first Half-Year report, published in July.
Read More EU: EIOPA publishes second Half-Yearly Financial Stability Report for 2013; comprehensive stress tests on the way
FCA fines Porta Verde £25,000, reminding firms to keep a close watch on their appointed representatives
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Financial Conduct Authority (FCA) has fined Porta Verde Financial Services Limited (Porta Verde) £25,000 for the serious mis-selling of insurance products by two of its appointed representatives (ARs).
Read More FCA fines Porta Verde £25,000, reminding firms to keep a close watch on their appointed representatives
FIO Weighs in on Financial Captive Reinsurers and the Use of PBR
By Zachary Lerner & Troutman Pepper Locke on
On December 12, 2013, the Federal Insurance Office (the “FIO”) published its long-delayed report entitled “How to Modernize and Improve the System of Insurance Regulation in the United States” (the “Report”). The FIO was required under Title V of the Dodd-Frank Wall Street Reform and Consumer Protection Act to issue the Report almost two years ago. …
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NAIC Disputes Need for Global Capital Standards
By Troutman Pepper Locke on
At the International Insurance Relations (G) Committee meeting on Sunday, December 15, there were presentations by Gordon Brady, Deputy Secretary General of the International Association of Insurance Supervisors (IAIS) and Gabriel Bernadino, Chairman of the European Insurance and Occupational Pension Authority (EIOPA) on the development of international standards for insurance company solvency by the IAIS. …
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Suspension of U.S. and E.U. Sanctions on Insurance Related to Iran’s Petrochemical Exports
On November 24, Iran entered into a Joint Plan of Actionwith the United States, China, the Russian Federation, France, Germany, and the United Kingdom (the “E3/EU+3”), whereby in exchange halting to certain uranium enrichment activities and agreeing to be monitored by the International Atomic Energy Agency, the E3/EU+3 agreed to, among other things, suspend U.S. and E.U. sanctions on Iran’s petrochemical exports and associated services (“Joint Plan”). …
Read More Suspension of U.S. and E.U. Sanctions on Insurance Related to Iran’s Petrochemical Exports