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On 11 July 2010 the China Regulatory Commission (the CIRC) stated that it proposed to remove restrictions on insurance companies in China in deciding the assumed (or guaranteed) interest rates for “conventional” (non-participating) life insurance policies in order to protect consumers’ interests and encourage innovation in the sector. …
Read More China: The China Insurance Regulatory Commission Proposes to Lift Interest Rate Cap

This updates our July 23, 2010 posting.  Rep. Gene Taylor’s (D.-Miss.) Multiple Peril Insurance Act (H.R. 1264) failed to reach a floor vote prior to U.S. House of Representatives’ month-long recess that began this week.  H.R. 1264 would expand the National Flood Insurance Program (“NFIP”) to cover windstorm insurance.  The measure will not be picked up again until the House reconvenes in September. …
Read More Multiple Peril Insurance Act Stalls In House While Compromise Bill Introduced In Senate

On 29 July 2010, the Competition Commission published for consultation its provisional decision on remedies in relation to retail payment protection insurance (PPI). Please click here to view the decision. This follows the Competition Commission’s reconsideration of its decision to impose a prohibition on selling PPI at the credit point of sale (the point of sale prohibition (POSP)) following remittal of certain issues by the Competition Appeal Tribunal. …
Read More UK: Competition Commission Consults on Changes to the Way Retail Payment Protection Insurance is Sold

Spurred by media reports alleging deception by some life insurers in their use of retained asset accounts[1] for disbursing death benefits to the beneficiaries of fallen United States military personnel and the apparent lack of oversight by federal and state regulators, New York Attorney General, and gubernatorial hopeful, Andrew Cuomo has issued subpoenas to leading life insurers regarding their alleged “reaping [of] hundreds of millions in secret profits while misleading families into putting benefits into insurer controlled, low yield, potentially risky accounts.” …
Read More Life Insurer Use of Retained Asset Accounts Under Fire by State Attorneys General

In July, the Michigan Supreme Court ruled that a five-year-old set of regulations promulgated by the Michigan Office of Insurance and Financial Regulation (the “OIFR”) banning the use of credit scores in setting personal insurance premiums was an over extension of the insurance regulator’s statutory authority. …
Read More Michigan Supreme Court Upholds Credit Scoring for Personal Lines Insurance

The NAIC is seeking proposals for a vendor to model expected losses on approximately 7,500 commercial mortgage-backed securities (CMBS) as of December 31, 2010, according to a news release issued by the NAIC July 28, 2010.  The expected losses will determine NAIC designations used by insurers to calculate the solvency reserves needed to cover their CMBS holdings. …
Read More NAIC Releases RFP to Produce Designations for Commercial Mortgage-Backed Securities

The enactment of the Comprehensive Iran Sanctions, Accountability and Divestment Act of 2009 (the “Iran Sanctions Act”), signed by President Obama in the first week of July, threatened the status quo regarding the insurance and reinsurance by international insurance firms of risks relating to the Iranian petroleum industry, including cargos of oil and petrochemical equipment. …
Read More A Consensus Emerges on Iranian Sanctions: Compliance May be Easier for Global Insurers

We have previously reported here and here on the long-running saga following the demise of Equitable Life. The latest chapter is the Equitable Life (Payments) Bill which received its first reading in the House of Commons on 22 July 2010.  The Bill is intended to allow the Treasury to provide finance for payments to be made in cases where persons have been adversely affected by the Government’s maladministration in the regulation of Equitable Life Assurance Society (Equitable Life) in the period before 1 December 2001. …
Read More UK: Equitable Life (Payments) Bill Receives First Reading in House of Commons

The UK Ministry of Justice has announced that the Bribery Act will be implemented in April 2011, six months later than originally anticipated.  The Bribery Act will introduce a comprehensive scheme of bribery offences in the private and public sectors, including the offences of bribery of a foreign public official and, in relation to commercial organisations, failing to prevent bribery. …
Read More UK: Bribery Act 2010

On 19 July 2010, the FSA sent a letter to UK insurance firms reminding them of the requirement that terms in legal expenses insurance must not detract from, or qualify in any way, an insured’s freedom to choose a lawyer. …
Read More UK/EU: Legal Expenses Insurance Must Comply with Insured’s Freedom to Choose Lawyer Under EU Directive