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Expect Focus - Volume I, January 2024

Funds Not Caged by SEC Names Rule Amendments: Roaming Room Remains - The SEC recently adopted amendments to its investment company “names” rule that apply to most SEC-registered funds, including underlying funds in which...more

Expect Focus - Volume II, May 2023

For broker-dealers distributing and selling variable annuities, examinations will test for compliance with Reg BI and FINRA Rule 2330 because both standards apply to variable annuity sales. Firms distributing and selling...more

Expect Focus - Volume I, January 2023

More than 25 years have elapsed since the SEC adopted Exchange Act Rule 17a-4(f) governing electronic recordkeeping by broker-dealers. In an effort to update the rule to reflect “technology neutral” concepts, the SEC adopted...more

Florida Federal Court Dismisses Reinsurer’s Agent From Breach Of Contract Lawsuit

In this case, the ceding company, VIP Universal Medical Insurance Group Ltd. (“VIP”), brought an action in Florida federal court against its reinsurer, BF&M Life Insurance Company Ltd. (“BF&M”), and International Reinsurance...more

U.S. Tax Court Finds Captive Insurer Is Not an “Insurance Company” Under the Internal Revenue Code

In this case, Reserve Mechanical Corp. (“Reserve”), a captive insurer incorporated under the laws of Anguilla, sued the Commissioner of Internal Revenue in the U.S. Tax Court regarding the Commissioner’s findings of $477,261...more

California Federal Court Remands Fraud Claims In Workers’ Compensation Reinsurance Action To State Court

In a March 15, 2018 order, noting that only state law claims remained in the case, a California federal court remanded to state court a lawsuit against an insurance company and its affiliates, which alleged that they...more

Connecticut Insurance Department Issues Two Bulletins

The Connecticut Insurance Department recently issued two bulletins, both of which mandate financial reporting by insurers to the Department....more

National Flood Insurance Program Is Relieved Of $16 Billion Debt

On October 26, 2017, President Donald Trump signed H.R. 2266, a disaster relief bill. Pursuant to section 308 of the bill, the Department of the Treasury will forgive $16 billion in debt owed by FEMA under the National Flood...more

Court Rules Again On Motion To Dismiss In Matter Involving Unfiled Rates Charged Under Reinsurance Agreement

On July 21, 2016, we reported on a putative class action filed in a California U.S. district court by Shasta Linen Company against Applied Underwriters, Inc. and its affiliated entities, alleging that the “EquityComp”...more

Alabama Federal Court Finds Cedent Did Not Waive Arbitration, And Orders Reinsurance Dispute To Be Arbitrated

Alabama Municipal Insurance Corp. (“AMIC”), an Alabama non-profit public insurer, brought suit in Alabama federal court against Munich Reinsurance America Inc. (“Munich Re”), alleging breach of a reinsurance contract for...more

Hurricane Harvey: Insurance Statutes and Regulations

Because Hurricane Harvey claims may be taking you and your colleagues to different states, we thought it might be helpful to bear in mind the claims adjusting standards and regulations in those states that will likely be...more

Pennsylvania Federal Court Grants Motion To Dismiss Based On Lack Of Subject Matter Jurisdiction

Plaintiff RAD Manufacturing, LLC (“RAD”), a Delaware corporation with its principal place of business in Pennsylvania, and its insurer and reinsurer (as subrogees) brought an action in federal court in Pennsylvania against...more

Illinois Court Holds That Reinsurers And Insurer Need To File Complaint In Legal Malpractice Lawsuit In Their Own Names Pursuant...

In this case, an Illinois appellate court held that Section 2-403 of the Illinois Code of Civil Procedure, 735 ILCS 5/2-403, required the reinsurers and insurer of Developers Surety and Indemnity Co. (“DSI”) a surety, to file...more

Louisiana Federal Court Finds Removal Proper As Dispute Could Relate To An Underlying Arbitration Clause In Insurance Policy

In this case, a Louisiana federal court denied a motion for remand of a former machinist’s asbestos-related claim, finding that an English insurer’s removal from state court was appropriate and that the dispute could relate...more

Kentucky Federal Court Orders Further Briefing On Whether The Federal Arbitration Act Or Kentucky Law Applies In Dispute Involving...

The background of this case is as follows. State Insurance Commissioner Brian Maynard, acting as liquidator of the failed Kentucky Health Cooperative (“KYHC”), filed suit in Kentucky state court against CGI Technologies and...more

New York Appellate Court Affirms Denial Of Motion For Change Of Venue

In this reinsurance coverage case in a New York court, certain defendant reinsurers made a motion for a change of venue under NY CPLR 510 (2) on the ground that “an impartial trial could not be had” based on the fact that...more

South Carolina Federal Court Makes Two Rulings On Motions To Dismiss In Dispute Involving Reinsurance Trust Agreements

This case was previously reported by us on our blog on January 5, 2016, June 28, 2016 and July 20, 2016. For the full procedural background, we refer to the recent November 3, 2016 and November 16, 2016 decisions. In sum,...more

Oklahoma District Court Denies Motion To Stay Action During Defendant’s Insurer’s California Conservation Proceedings

This case involved a personal injury negligence action brought by plaintiffs Cameron David and Shelby Gladd against defendants Satnam Singh and his employer Landmark Logistics, Inc. (“Landmark”) in Oklahoma federal court....more

Structure Of CFPB Found To Be Unconstitutional But Agency Survives With Cut To Director’s Power

The DC Circuit Court of Appeals recently held that the single-director structure of the Consumer Financial Protection Bureau (“CFPB”) was unconstitutional, and gave the President the authority to fire the director at will in...more

Post-Hurricane Matthew: Insurance Statutes and Regulations

Because Hurricane Matthew claims may be taking you and your colleagues to several different states, we thought it might be helpful to bear in mind the different claims adjusting standards and regulations in those states that...more

Texas Appeals Court Denies Petition For A Writ Of Mandamus That Trial Court Erred In Denying Motion To Vacate Arbitration Panel’s...

A Texas appeals court denied a petition for a writ of mandamus filed by Irving Drobny, on behalf of National Accident Insurance Group (“NAIG”) and National Accident Insurance Underwriters (“NAIU”) (collectively, “NAIU”),...more

California Federal Court Dismisses Claims In Class Action To The Extent Plaintiff’s Claims Are Based On The Theory That Rates Were...

In this class action lawsuit in a California federal court, Shasta Linen Company and all those similarly situated brought an action against Applied Underwriters, Inc. and its affiliate entities. Shasta Linen alleges that the...more

Pennsylvania Insurance Department Amends Requirements For Qualified And Certified Reinsurers To Conform With NAIC’s Model Law And...

On May 14, 2016, Pennsylvania issued Bulletin No. 16-819, advising that the Pennsylvania Insurance Department amended Chapter 161 of the Pennsylvania Insurance Code related to the requirements for qualified and certified...more

Nebraska Department Of Insurance Issued Notice Of Adoption Of Amendments To Credit For Reinsurance Rules

On February 25, 2016, the Nebraska Department of Insurance issued a notice to all insurers that amendments to Chapter 65, “Credit for Reinsurance”, of the Insurance Department Rules, have been filed with the Secretary of...more

Pennsylvania Federal Court Remands Litigation Against Broker Back To State Court, Finding That Party Was Not Fraudulently Joined

The background of this case is that Boomerang Recoveries LLC, a reinsurance program review company, investigated Farmers Insurance Company’s reinsurance contracts to identify any premiums Farmers had been overcharged in...more

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