Reinsurance Focus

In another of a series of cases involving Lloyd's enforcing UK judgments against Names for Equitas reinsurance premium, after losing on a summary judgment motion that enforced the UK judgment, a Name moved to set aside the judgment based upon an exchange rate provision. Finding the District Court did not err by applying the Utah Uniform Foreign-Money Claims Act, the Tenth Circuit affirmed the denial of the motion. Society of Lloyd's v. Bennett, Case No. 05-4069 (10th Cir. June 2, 2006). This appears to be one of those cases in which a party simply will not give up. Having lost in the English Courts and in the US District Court, while an appeal was pending to the Tenth Circuit, the Names sought to vacate or modify the District Court's Order by filing a Rule 60 motion. Even this case appears to be near an end.

In another of a series of cases involving Lloyd's enforcing UK judgments against Names for Equitas reinsurance premium, after losing on a summary judgment motion that enforced the UK judgment, a Name moved to set aside the judgment based upon an exchange rate provision. Finding the District Court did not err by applying the Utah Uniform Foreign-Money Claims Act, the Tenth Circuit affirmed the denial of the motion. Society of Lloyd's v. Bennett, Case No. 05-4069 (10th Cir. June 2, 2006). This appears to be one of those cases in which a party simply will not give up. Having lost in the English Courts and in the US District Court, while an appeal was pending to the Tenth Circuit, the Names sought to vacate or modify the District Court's Order by filing a Rule 60 motion. Even this case appears to be near an end.

The United States Court of Appeals for the Fourth Circuit affirmed a District Court decision granting summary judgment to a reinsurer, finding the negotiated contractual allocation of responsibility for complying the South Carolina's requirements for active life reserves for long term care policies was valid and enforceable, and not in violation of South Carolina law or public policy. Kanawha Insurance Corp. v. Employers Reinsurance Corp., Case No. 05-2206 (July 12, 2006).

Brief article from the Insurance Journal on operational trends in the reinsurance industry.

The Financial Accounting Standard Board has issued an invitation to comment on a proposal to require policyholders to treat a portion of many types of policies as deposits, recording premiums for risk transfers as expenses and insurance recoveries as gains in income. This proposal was prompted, at least in part, due to perceptions that companies have used finite reinsurance arrangements with little risk transfer to “improve” their financial statements.