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Last month the NAIC Capital Markets Bureau issued a Special Report finding that despite an in increase in the number of private equity (“PE”) owned U.S. insurers, investment volume held by PE-owned insurers declined as of year-end 2021.  The NAIC Special Report is timely coming off a Senate Banking Committee hearing earlier in the month in which some members expressed concern at the rapid expansion of PE firms into the insurance space, particularly through M&A activity.  Some members have expressed concern that PE firms are less risk-averse than traditional insurance companies.
Read More NAIC Examines Investment Holdings of Private-Equity Owned Insurers

Issues to Watch

  1. Causation—What is an insured’s burden when the claimed loss involves a mix of covered and non-covered causes? Overstreet v. Allstate Vehicle & Prop. Ins. Co., No. 21-10462, 2022 WL 1579278 (5th Cir. May 19, 2022). This case involves a claim to replace a leaky roof. The insured claimed that the roof leaks were caused by a hailstorm, but the insurer determined that the leaks were due to uncovered causes, including wear and tear along with damage from prior hailstorms.

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Read More May 2022 Property Insurance Law Updates

Michael Humphreys, the Pennsylvania Insurance Department’s Chief of Staff, has been named the acting Pennsylvania Insurance Commissioner following the departure of Insurance Commissioner Jessica Altman on February 25th.  Mr. Humphreys was previously the Assistant Commissioner of Tennessee Department of Commerce and Insurance.  He has also held various positions within the insurance industry.

https://www.governor.pa.gov/newsroom/insurance-commissioner-jessica-altman-to-depart-wolf-administration/…
Read More Pennsylvania Governor Names Acting Insurance Commissioner

The National Association of Insurance Commissioners’ (“NAIC”) Macroprudential Working Group (“MWG”) is reviewing the influence that private equity firms have over the insurance industry. The MWG has recently  approved a list of “regulatory considerations” that the MWG will be reviewing and considering.  The list can be found here, and the MWG’s comments can be found here.
Read More NAIC Assessing Private Equity Involvement in Insurance Industry

In 1990, the Second Circuit in Bellefonte Reinsurance Co. v. Aetna Casualty & Surety Co., 903 F.2d ‎‎910 (2d Cir. 1990), affirmed a District Court judgment that reinsurers were not obligated to pay ‎additional sums for defense costs over and above the limits of liability specified in a facultative ‎reinsurance certificate. Since then, the Bellefonte rule acted as a de facto cap for both indemnity and ‎expense under a facultative certificate. This issue of ‘limits’ had been hotly contested, and Bellefonte ‎seemed to put it to rest. ‎…
Read More Locke Lord QuickStudy: What Goes Around Comes Around

The global reinsurance landscape is an interconnected, intertwined marketplace that continues to grow and evolve. As insurance companies, agencies, program administrators and other industry actors continue to expand their creative horizons and develop innovative insurance products, the need for reinsurance coverage has accelerated as well.
Read More 10 Things to Consider When Buying, Selling or Operating a Reinsurance Intermediary

On April 14, 2021, the Maine’s Bureau of Insurance issued Bulletin 457 to explain the general ‎conditions and requirements for surplus lines placements, and to reaffirm to producers their ‎obligations and responsibilities under Maine law.
Read More LL Surplus Lines Series (Entry 30): Maine Issues Bulletin Explaining the Conditions for Surplus Lines Placement

Locke Lord’s Privacy & Cybersecurity Newsletter provides topical snapshots of recent developments in the fast-changing world of privacy, data protection, and cyber risk management. For further information on any of the subjects covered in the newsletter, please contact one of the members of our privacy and cybersecurity team.
Read More Privacy & Cybersecurity Newsletter – Winter 2021