Better late than never, the Third Party (Rights Against Insurers) Act of 2010 finally came into force in an amended form on 1 August 2016. It applies across the UK, with minor variances between Scotland and England and Wales. The Act updates third party creditors’ rights against insurers under the 1930 Act of the same name, permitting a streamlined and more cost-efficient procedure for creditors’ claims against insurers in circumstances where the insured company/ individual which took out the liability insurance has suffered an insolvency event.

Historic Position

On April 30th, the FDIC issued a final rule that treats a mutual insurance holding company as an insurance company for purposes of Section 203(e) of the Dodd-Frank Act. The new rule clarifies that the liquidation and rehabilitation of a covered financial company that is a mutual insurance holding company will be conducted in the same manner as an insurance company.

On November 1st, the Treasury Department provided an update regarding the federal government's involvement with AIG. AIG will use the proceeds from its sale of one unit and the IPO from a second to repay the loan extended to AIG by the Federal Reserve Bank of New York and to repurchase a substantial amount of the FRBNY's preferred interests in certain AIG subsidiaries. AIG will then draw up to $22 billion in remaining Troubled Asset Relief Program funds from the Treasury Department to restructure its governmental obligations.

On December 2nd, the House Financial Services Committee approved the Financial Stability Improvement Act, H.R. 3996, which creates a financial risk oversight council and provides for a mechanism for winding down a systemically important non-bank financial institution facing collapse. Committee Press Release. See also Bill Summary.