Reinsurance

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On December 24, 2008, the New York State Insurance Department (“NYSID”) released Proposed Tenth Amendment to Regulation No. 20 (11 NYCRR 125) Credit for Reinsurance from Unauthorized Reinsurers (the “Proposal”). The Proposal, if adopted, would significantly liberalize existing reinsurance regulation by allowing ceding insurers to take statutory credit for reinsurance assumed by unauthorized, unaccredited reinsurers without requiring as much, or in some cases, any collateral if certain conditions are satisfied. …
Read More CLIENT ADVISORY: New York Releases Proposed Amendment to Regulation No. 20 Relaxing Collateral Requirements for Unauthorized Reinsurers and Prohibiting Arbitration

This past year we’ve followed the U.S. Supreme Court’s decision in Hall Street Associates, L.L.C. v. Mattel, Inc., No. 06-989 (U.S. Mar. 25, 2008), and whether courts have interpreted it as eliminating the doctrine of manifest disregard of the law, a judicially-created concept that provides parties with a basis for challenging an arbitration award beyond those grounds enumerated in the Federal Arbitration Act (“FAA”). …
Read More Did Hall Street Eliminate Manifest Disregard of the Law as a Valid Basis for Vacating or Modifying Arbitration Awards? A 2008 Summary of Conflicting Decisions

Insurance Company of North America and INA Reinsurance Company (“INA”) reinsured Public Service Mutual Insurance Company (“PSMIC”) pursuant to a series of excess of loss reinsurance contracts, effective from 1971 to 1986 (the “Reinsurance Contracts”).  In 2005, PSMIC settled a claim against its insured, Deleet Merchandising Corporation, at a site in Newark, New Jersey (the “Deleet claim”) and allocated the loss pro-rata over fifteen insurance policies PSMIC had issued to Deleet between 1971 and 1986.  PSMIC then billed its reinsurers, including INA, for the Deleet claim based upon this allocation. 

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Read More New York Federal Court Finds that Arbitrator’s Resignation Due to Illness Means that Arbitration Must Start Over From the Beginning

In a recent decision of the United States Court of Appeals for the Fifth  Circuit, Safety National Cas. Corp. v. Certain Underwriters at Lloyd’s of London, No. 06-30262 (5th Cir. Sept. 29, 2008), the court held that the McCarran-Ferguson Act (“McCarran-Ferguson”) does not cause a state law regulating the business of insurance to “reverse preempt” the provisions of a United States treaty. 

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Read More Fifth Circuit Rules New York Convention Not “Reverse Preempted” By Louisiana Statute

On December 24, 2008, the New York State Insurance Department (“NYSID”) released a draft of its proposed amendments (the “Proposal”) to New York’s insurance regulations that authorize admitted insurers to receive credit for reinsurance ceded to unauthorized insurers. 

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Read More Update: New York Releases Draft Proposal Of Amendments To Credit For Reinsurance From Unauthorized Insurers Regulations

This blog updates our September 29, 2008 and December 8, 2008 postings.

A number of industry groups and interested parties have issued statements responding to the adoption of the Reinsurance Regulatory Modernization Framework Proposal (“Proposal”) at the NAIC Winter National Meeting, the adoption. …
Read More Industry Responds to Adoption of NAIC Reinsurance Modernization Proposal

On December 10, 2008, the Senate Finance Committee (the “Committee”) held a meeting to discuss proposed legislation (the “Proposal”) that would reduce the purported competitive advantage in tax treatment received by affiliated foreign reinsurers by altering the tax code to disallow deductions for a portion of reinsurance premiums ceded by insurance companies to affiliated foreign reinsurers who are not subject to U.S. taxation. …
Read More Senate Finance Committee Discusses Reinsurance Tax Legislation

Plaintiffs Matria Healthcare LLC f/k/a Matria Healthcare, Inc. (“Matria”) moved to compel the depositions of Angus M. Duthie and Thomas Hannon, non-parties in an arbitration that was pending before the American Arbitration Association. 

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Read More Illinois Federal Court Finds That Arbitrator Cannot Compel Prehearing Depositions of Non-Parties Under the Federal Arbitration Act