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In the 2009 Budget, on 22 April 2009, the Chancellor announced the introduction of a Government-backed  ‘top-up’ trade credit insurance scheme aimed at addressing the challenges that UK businesses were facing as a result of the reduction in availability of trade credit insurance (the Scheme). 

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Read More UK: Changes to UK Trade Credit Insurance Top Up Scheme

On 26 June 2009, a solicitor and a recovery agent were found guilty by the District Court for offering a “no win, no fee” deal to a mother seeking compensation for her son, who was severely injured in a road traffic accident. The recovery agent was also found guilty of champerty, that is, negotiating to receive a share of  the proceeds of litigation in which he had no interest. …
Read More HK: Prohibition Against Contingent Fee Arrangement Re-Affirmed

This updates our July 31, 2009 posting.  On August 19, 2009, Michigan’s House Insurance Committee advanced the package of “bad faith” bills (House bills 4244, 4844, 4858, 5020, 5144-5151) by voting to toughen penalties for insurance companies that deny or delay valid claims. 

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Read More Michigan’s House Insurance Committee Advances “Bad Faith” Legislation

The New York Insurance Department issued proposed Regulation No. 192 (11 NYCRR) (the “Proposed Regulation”) establishing minimum reserve and nonforfeiture standards for preneed life insurance policies (i.e. policies that provide a prearrangement agreement for goods and services to be provided upon the death of the insured). …
Read More New York Issues Proposed Regulation to establish Minimum Standards for Determining Reserve Liabilities and Nonforfeiture Values for Preneed Life Insurance

On August 4, 2009, Delaware Insurance Commissioner Karen Weldin Stewart announced that the Department of Insurance (the “Department”) has established the new Bureau of Captive and Financial Insurance Products (the “Bureau”) to dedicate more resources to the regulation of captives and make the regulatory process more efficient. 

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Read More Delaware Department of Insurance Establishes Captive Bureau

This updates our March 30, 2009 posting.  On July 27, 2009, the National Association of Insurance Commissioners (“NAIC”) released a revised draft of the Reinsurance Regulatory Modernization Act of 2009 (the “Act”), which was the result of a proposal adopted at its 2008 Winter Meeting to modernize reinsurance regulation. 

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Read More NAIC Releases Second Draft of Federal Legislation for Implementation of Reinsurance Regulatory Modernization Framework

On August 10, 2009, New York Governor David Patterson signed legislation continuing the freeze on medical malpractice rates.  In addition to the premium rate freeze, the legislation also suspended an anticipated surcharge.  The Legislature projected that without the freeze, medical malpractice rates would have increased by as much as 30% for some physicians. 

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Read More New York Freezes Medical Malpractice Rates For Additional Year

As the House of Representatives prepared to leave for its month-long August recess last week, Rep. Richard Neal (D-MA) introduced legislation to repeal a controversial tax deduction used by foreign reinsurers.  The bill, H.R. 3424, would disallow the deduction for excess non-taxed reinsurance premiums with respect to United States risks paid to affiliates. 

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Read More Insurance and Financial Regulatory Reform Update

On 27 July 2009,  the Financial Services Authority (the FSA) issued PS09/14: “The approved persons regime – significant influence function review” (the Policy Statement) confirming that it will extend the approved persons regime for those that perform a ‘significant influence’ function at firms. The changes are aimed at better reflecting the corporate governance structures that exist within firms. 

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Read More Financial Services Authority Confirms Changes to the Rules for Approved Persons