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At the recently concluded NAIC Fall National Meeting, the Reinsurance Task Force of the Financial Condition (E) Committee, released for public comment the highly anticipated draft of the NAIC Process for Developing and Maintaining the List of Qualified Jurisdictions (“Process”). The stated purpose of the Process is to establish a method for evaluating the reinsurance supervisory systems of non-U.S. jurisdictions. …
Read More NAIC Proposes Reinsurance Credit “Qualified Jurisdictions” Standard and Process

The Senior Issues Task Force (“Task Force”) of the National Association of Insurance Commissioners (“NAIC”) held a public hearing on long-term care insurance (“LTCI”) at the NAIC Fall National Meeting in Washington, DC.  During the hearing, a panel of experts discussed issues impacting the LTCI industry, including the impact of the economy on LTCI sales, increases in rates by private insurers, and the exit by a number of carriers from the market. …
Read More NAIC Senior Issues Task Force Held Public Hearing on Long-term Care Insurance

The National Association of Insurance Commissioners (“NAIC”) voted to adopt a Valuation Manual (the “Manual”) at its National Meeting on December 2, 2012 in Washington D.C., setting forth a principles-based approach to life insurance company reserves (known as principles-based reserving or “PBR”).  Currently, insurance company reserves are calculated using formulas prescribed by state insurance laws and regulations. …
Read More NAIC Adopts Valuation Manual and Establishes Working Group

In Christopher Simmons v Derek Castle [2012] EWCA Civ 1288, the Court of Appeal amended the guidance given in the earlier judgment of Simmons v Castle [2012] EWCA Civ 1039 by stating that, with effect from 1 April 2013, the proper level of general damages in all civil claims for six specified heads of loss will be 10% higher than previously, unless the claimant falls within section 44(6) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (the Act). …
Read More UK: Court of Appeal Revises Guidance Regarding Level of General Damages in Civil Claims

In the Australian case of Bathurst Regional Council v Local Government Financial Services Pty Ltd (No 5) [2012] FCA 1200, the Australian Federal Court held Standard & Poor’s (S&P) to be jointly liable with ABN Amro Bank NV and Local Government Financial Services for losses suffered by 13 local councils, who had invested in complex credit derivatives that had been rated ‘AAA’ (the highest possible rating) by S&P. …
Read More Australian Court Rules Agencies Should be Held Accountable for Inaccurate Credit Ratings

The case involved a class action filed by an annuity beneficiary alleging that the insurer sold his mother and similarly situated plaintiffs a deferred annuity that did not comply with disclosure requirements of individual annuity contracts pursuant to California Insurance Code (“CIC”) §§ 10127.10(c) and 10127.13.   …
Read More US District Court in California Holds That an Out-of-State Group Annuity is Not Subject to California’s Individual Annuity Disclosure Requirements

According to industry press, insurance linked security and catastrophe funds are reporting varying performance results stemming from Super Storm Sandy (the “Storm” or “Sandy”), with some funds reporting greater mark-to-market losses than others. …
Read More Insurance Linked Securities Industry Reports Varied Effects of Sandy on Fund Performance in October

Effective January 1, 2013, Massachusetts long-term care insurance (“LTCi”) policies must comply with Senate Bill 2359, legislation that establishes a new chapter 176S in the General Laws that sets forth statutory standards specifically for LTCi.  Previously, LTCi statutory standards were set by reference to the accident and health provisions of Chapter 175 of the General Laws of the Commonwealth. …
Read More Long-term Care Insurance Act Passed in Massachusetts

In response to the extensive damage suffered throughout the northeastern corridor during October, 2012 as a result of Superstorm Sandy, multiple state insurance agencies are intervening on behalf of homeowners by announcing that they will not be required to pay hurricane deductibles on their insurance policies. …
Read More “Sandy” Brings Costs to Homeowners, but not Hurricane Deductibles