We cordially invite you to join insurance industry attendees to the AIRROC Boston Regional Education Day on April 9th. The full day program and post-session reception will be held in the offices of Edwards Wildman Palmer LLP, 111 Huntington Avenue, Boston, MA.
Read More Please Join Us – AIRROC Boston Regional Education Day – April 9, 2014
Reinsurance
Validus District Court Decision: Retrocessions Not Taxable as Reinsurance Under Section 4371 of the Code
As previously discussed in our Insurance and Reinsurance Blog (the relevant post can be found here), the United States District Court for the District of Columbia recently ruled that the excise tax imposed on the foreign insurance/reinsurance of U.S. risks by Section 4371 of the Internal Revenue Code does not apply to retrocessions. Validus, a Bermuda reinsurer, filed the refund suit in this case with respect to excise taxes it had paid on nine retrocession policies. …
Read More Validus District Court Decision: Retrocessions Not Taxable as Reinsurance Under Section 4371 of the Code
Massachusetts Legislative Committee Favorably Reports Reinsurance Credit Bill
By Troutman Pepper Locke on
Last week, we wrote about pending legislation in Massachusetts that would realign the state’s reinsurance regulations to make them more consistent with the increasingly global nature of insurance and reinsurance markets. …
Read More Massachusetts Legislative Committee Favorably Reports Reinsurance Credit Bill
Massachusetts Legislative Committee Considers Reinsurance Credit Requirements
By Troutman Pepper Locke on
The Massachusetts Legislature’s Joint Committee on Financial Services is due to report next week on HB 881, An Act Relative to Reinsurance Requirements. Sponsored by Representative Michael Costello of Newburyport, the bill closely tracks the NAIC’s Revised Credit for Reinsurance Model Law, which has already been adopted in eighteen states, including New York, Connecticut, Rhode Island, and New Hampshire. …
Read More Massachusetts Legislative Committee Considers Reinsurance Credit Requirements
Vermont Enacts “Legacy Insurance Management Act” for Commercial Run-Off Business
By Troutman Pepper Locke on
Posted in Regulatory, Reinsurance
Vermont Governor Peter Shumlin has signed H. 198, titled the Legacy Insurance Management Act (“LIMA”), in an effort to attract new domestic insurance companies dedicated to run-off business in Vermont. LIMA allows for the formation of Vermont-domiciled insurance companies whose sole purpose is to acquire closed blocks of P&C commercial insurance and reinsurance business from non-admitted companies. …
Read More Vermont Enacts “Legacy Insurance Management Act” for Commercial Run-Off Business
Validus Wins Round One: Retrocessions Not Taxable Under 26 USC § 4371(3)
By Troutman Pepper Locke on
A federal district court in Washington handed Validus Reinsurance a major win on Wednesday, declaring that the IRS has no authority to assess excise tax on retrocessions. The decision in Validus Reinsurance, Ltd. v. United States of America, No. 13-0109 (D.D.C. Feb. 5, 2014), is available here. …
Read More Validus Wins Round One: Retrocessions Not Taxable Under 26 USC § 4371(3)
NAIC: Bermuda, Germany, Switzerland and UK Now Qualified for Reduced Collateral Requirements
By Troutman Pepper Locke on
Posted in Reinsurance, United States
On December 18, 2013, the National Association of Insurance Commissioners (NAIC) approved four jurisdictions as “Conditional Qualified Jurisdictions,” meeting its year-end goal for expedited review of certain jurisdictions. The four jurisdictions are Bermuda, Germany, Switzerland and the United Kingdom.
Read More NAIC: Bermuda, Germany, Switzerland and UK Now Qualified for Reduced Collateral Requirements
NAIC: Edwards Wildman Roundtable with Richard Schlesinger, Chief of Reinsurance and Surplus Lines New Jersey Department of Banking and Insurance
By John Emmanuel & Troutman Pepper Locke on
Edwards Wildman hosted a roundtable at the 2013 NAIC Fall National Meeting in Washington, DC with Richard Schlesinger, Chief of Reinsurance and Surplus Lines, from the New Jersey Department of Banking and Insurance for a discussion about the New Jersey Reinsurance Certification Program. …
Read More NAIC: Edwards Wildman Roundtable with Richard Schlesinger, Chief of Reinsurance and Surplus Lines New Jersey Department of Banking and Insurance
UK: Commercial Court Considers Brokers’ Duties, Limitation and Recoverability of Funds and Investment Return
By Troutman Pepper Locke on
Posted in Reinsurance, United Kingdom
In Equitas Limited v Walsham Brothers & Company Limited [2013] EWHC 3264 (Comm), Equitas claimed that the defendant broker, Walsham, received substantial sums (claims on outwards policies and premiums on inwards policies) which it should have remitted to the syndicates (or, after an assignment to Equitas in 1996, to Equitas). …
Read More UK: Commercial Court Considers Brokers’ Duties, Limitation and Recoverability of Funds and Investment Return
UK: English High Court Rules on the Application of a Follow the Settlements Clause
By Troutman Pepper Locke on
Posted in Reinsurance, United Kingdom
The case of Tokio Marine Europe Insurance Ltd v Novae Corporate Underwriting Ltd [2013] EWHC 3362 (Comm) concerned losses suffered by a Thai subsidiary of Tesco plc arising out of severe floods in Thailand in 2011. The Tesco subsidiary claimed for losses of approximately £125m under various insurance policies underwritten by certain ACE group companies (referred to collectively as ACE). …
Read More UK: English High Court Rules on the Application of a Follow the Settlements Clause