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New York’s highest court recently ruled insurance brokers do not have a common law duty to disclose to their customers the fact that they may have received incentive payments received from insurance companies.  The practice of non-disclosure, however, is now prohibited by an Insurance Department regulation, which did not exist at the time of the conduct at issue in the lawsuit. …
Read More New York Court of Appeals: Brokers Have No Common-Law Duty to Disclose Incentives, But Are Required To Do So by New Regulation

The National Association of Insurance Commissioners (“NAIC”) recently sent a letter to U.S. Treasury Secretary, Timothy Geithner, declaring that state regulators are being denied an opportunity to weigh in on decisions made by the Financial Stability Oversight Council (the “Council”) created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) that will likely affect large insurers. …
Read More NAIC Expresses Concern Regarding Decisions Affecting Insurers Made By Financial Stability Oversight Council

On February 17, 2011, the U.S. Senate approved legislation that would repeal the expanded IRS Form 1099 information-reporting requirements imposed by healthcare reform law.  Section 9006 of the Patient Protection and Affordable Care Act (“PPACA”) currently requires that certain payments of $600 or more to corporations be disclosed on the IRS Form 1099 starting in 2012. …
Read More U.S. Senate Approves Repeal of 1099 Reporting Requirement

Connecticut lawmakers are considering plans to require public hearings when health insurers raise rates.  Under the current law, the Connecticut Insurance Commissioner may hold hearings at his discretion.  The new law, if adopted, however, will require public hearings in certain cases to give the state Attorney General and consumer advocates the opportunity to be heard and call witnesses. …
Read More Connecticut Legislation Would Require Public Hearings for Rate Increases

In November, we reported on the New York Court of Appeals’ decision in Kramer v. Phoenix Life Insurance Company, 15 N.Y.3d 539 (2010), in which the Court determined that a person may purchase a life insurance policy and then immediately transfer it to someone who lacks an insurance interest in that life, even if the policy were purchased with the intent of selling it. …
Read More Update: District Judge May Toss N.Y. STOLI Suit After Court of Appeals Ruling

Last week, U.S. Representatives and a group of large insurance companies sent letters to U.S. Treasury Secretary, Timothy Geithner, and other key lawmakers requesting that decisions affecting insurers under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) be postponed until all appointments are made to the newly created Financial Stability Oversight Council (the “Council”). …
Read More U.S. Representatives and Insurers Request Delay of Decisions Affecting Insurers Under Dodd-Frank Act

President Barack Obama’s recently released Budget of the U.S. Government for the Fiscal Year 2012 (the “Proposed 2012 Budget”) would disallow the deduction U.S. cedents are currently permitted to take for “excess non-taxed” reinsurance premiums paid to their foreign affiliates.  The Proposed 2012 Budget provides no further detail regarding the proposed disallowance, but projects that the disallowance would reduce the U.S. deficit by over $2.6 billion by 2021. …
Read More Obama Proposes Tax on Excess Reinsurance Premiums paid by Cedents to Offshore Affiliates

This updates our June 30, 2010 blog posting.  The New York Insurance Department (“NYID”) issued a draft circular letter last year regarding the implications of excess withdrawals from annuities with guaranteed minimum withdrawal benefits (“GMWB”).  On February 7, 2011, the NYID finalized and issued the circular letter as Circular Letter No. 5 (“Circular Letter”). …
Read More New York issues Circular Letter requiring Consumer Disclosures Explaining Excess Withdrawals from Annuities

In a “Dear CEO” letter dated 8 February 2011, Hector Sants announced that the FSA would adopt a new management structure on 4 April 2011, designed to reflect the “twin peaks” regulatory structure which the UK government intends to implement in 2013 (click here to see our most recent post on this subject). …
Read More UK’s FSA will reorganise business units on 4 April 2011