Can a company indemnify a director against liability for insolvent trading...
A director of failed reinsurer New Cap has failed to get an indemnity for a potential insolvent trading liability. The Court held that the company's standard director indemnity clause did not - and...
View ArticleAPRA eases up on recognition of reinsurance recoverables
Insurers should welcome the latest changes to APRA's package of refinements to the general insurance prudential framework, as they will allow unsecured reinsurance recoverables from non-APRA authorised...
View ArticleDOFIs exemptions finalised
Exemptions for direct offshore foreign insurers ("DOFIs") from the requirement to be authorised by APRA have been finalised by the Australian Treasury. Although the details have slightly changed, the...
View ArticlePraise the Lords: HIH reinsurance money coming home
After a legal battle lasting almost three years, HIH's UK reinsurance money is coming to Australia. On Wednesday night (Australian time), the House of Lords reversed two earlier decisions and held that...
View ArticleFinal piece of DOFIs reforms falls into place
The final tranche of DOFIs reform has just been released by the Australian Treasury - draft regulations establishing reporting requirements for AFSL holders who place business with DOFIs and the...
View ArticleBusinesses interrupted: have you checked your cover?
The Varanus Island gas plant explosion in WA is a timely reminder to check what risks businesses are insured against - or risk being out of pocket unnecessarily, national law firm Clayton Utz warns.
View ArticleWhat do you know - and should you have known it? Exclusion clauses and PI...
Prospective insureds under professional indemnity policies are often asked about "known circumstances" when applying for cover - but what is a "known circumstance"? This can be a crucial question when...
View ArticleThe rights of third party beneficiaries under contracts of insurance - A time...
This paper addresses some of the efforts to make third party beneficiaries under a contract of insurance less vulnerable, and whether there is a need for change.
View ArticleClayton Utz continues legal education at UNSW
For the fifth year Clayton Utz is hosting a four-day intensive financial services program at the University of New South Wales. This course is postgraduate accredited and qualifies for MCLE points, and...
View ArticleIndemnity insurance liabilities can make insurer insolvent
An insurer who provides indemnities against paid losses may be legally insolvent if it is unable to pay liabilities which have been incurred but which are not yet payable.
View ArticleNew prudential framework for general insurance groups finalised by APRA
The Australian Prudential Regulation Authority has released the latest tranche of prudential reforms, this time affecting Level 2 insurers, which are general insurance groups that have either an...
View ArticleOne insured + one loss + two insurers = section 45 Insurance Contracts Act
A party in a contract might be required to indemnify the other party. While this seems straightforward, it can lead to double insurance and some complex problems. The WA Court of Appeal's decision in...
View ArticleMaking your mind up: how long does an insurer need to decide to pay out on a...
A recent decision sheds some light on how long an insurer has to make its decision on whether a policy responds without being liable to pay interest (McConnell Dowell Middle East LLC v Royal & Sun...
View ArticleShareholders get to inspect Directors and Officers' liability insurance policies
A court has ordered a company to allow a shareholder to inspect its D&O policies. Inspection was to help the shareholder decide whether it was worthwhile suing the company's directors. This does...
View ArticleWhat's covered, and what's excluded? Contracts of reinsurance and section 18B
The NSW Supreme Court has confirmed that contracts of reinsurance are subject to the beneficial operation of section 18B of the NSW Insurance Act 1902 - and that exclusions and limitations have a...
View ArticleLife insurers' prudential regulation to change
APRA's regulation of life insurers is undergoing change, with the release of a discussion paper and draft prudential standards on audit and actuarial requirements, governance requirements and fit and...
View ArticleAccess to insurance policies: the new battleground
Recent months have seen three major attempts by plaintiffs to get access to the insurance policies of companies and their directors targeted for litigation, and more are expected.
View Article"Back-to-back" contracts of reinsurance can lead to face-off in court if not...
Do "back-to-back" reinsurance contracts provide cover co-extensive with the insurance, particularly where similar terminology is used, particularly where insurance and reinsurance are subject to...
View ArticleNo need for automatic run-off cover for AFS licensees from 1 January 2010
The Australian Securities and Investments Commission has relieved holders of an Australian Financial Services Licence from the need to hold 12 months of automatic run-off cover as part of their...
View ArticleDouble insurance, double the fun? Double insurance and section 45 ICA
The High Court's decision in Zurich Australian Insurance Ltd v Metals & Minerals Insurance Pte Ltd [2009] HCA 50 gives valuable guidance to the operation of section 45 of the Insurance Contracts Act.
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