Cozen O’Connor: Insurance Corporate & Regulatory

Insurance Corporate & Regulatory

Cozen O’Connor has been a powerful advocate on behalf of the industry for more than 40 years. Our attorneys represent all segments of the industry, including property and casualty, life, health, surety, title, and financial guaranty companies, HMOs and health plan corporations, excess and surplus lines insurers, reinsurers, life settlement companies, agents and brokers, adjusters, and various regulatory agencies.

We provide practical strategic advice concerning regulatory compliance, corporate governance, major corporate transactions and the launch of new business organizations. We do not simply provide a technical review of initiatives and transactions. We act as trusted partners to our insurance industry clients, helping them implement efficient compliance solutions, create new products and programs, grow their businesses, complete major financings and acquisitions, and provide faster and more streamlined service to policyholders.

Cozen O’Connor’s Corporate & Regulatory Practice consists of attorneys who have been advising the insurance industry for decades. It includes a former senior insurance department official and attorneys who have worked in-house for insurance companies. Our attorneys currently serve, or have previously served, on the boards of insurance companies and insurance industry organizations, and regularly present and publish articles on emerging issues in order to keep clients abreast of new developments.

One of the benefits of having such veteran insurance corporate and regulatory practitioners is that Cozen O’Connor is able to represent insurance organizations at every stage in the business life cycle. We have extensive experience guiding insurers through formation, corporate organization, capital raising, reinsurance, product development and the creation of distribution strategies. For established businesses, we provide counsel on mergers and acquisitions, broker and agent relations, compliance, and product and service innovation. We also offer a steady hand when insurers face potentially destabilizing challenges in the form of government investigations or insolvency. From start to finish, our team finds innovative business solutions for the insurance industry.

SERVICE AREAS

  • Advise on corporate reorganization, including acquisitions, divestitures and mergers, domestications and redomestications, demutualizations, purchases/sales of assets and books of business, restructurings and withdrawals from lines of business, and creation of new entities, including holding company structures
  • Counsel clients about regulatory compliance, market surveillance, advertising, statutory reporting, investment restrictions, holding company requirements, premium tax, surplus notes, premium financing, statutory deposits, and antitrust/McCarran-Ferguson matters
  • Handle corporate financial transactions, including initial and subsequent public offerings, private placements, credit facilities and conversions
  • Assist financially distressed insurers in matters involving releases of collateral, cut-through and set-off provisions, and acquisitions/divestitures
  • Represent clients before insurance regulators in examinations, licensing inquiries, investigations, and administrative hearings, including with respect to product or rate disapprovals
  • Advise clients on alternative risk mechanisms, including offshore and domestic captives, risk retention groups and self-insurance plans
  • Draft corporate governance policies, registrations, insurance contracts, collateral agreements, reinsurance agreements, and assumption agreements
  • Assist clients in responding to data calls and regulatory inquiries and filings under the Insurance Holding Company Act
  • Conduct internal investigations and due diligence

Experience

Publications

In the Public's Interest [Best's Review]

December 20, 2016

Kenneth Levine, co-chair of the Insurance Corporate & Regulatory Group, discusses the misuse of assignment of benefit provisions in connection with homeowners policies and its potential to create a rise in fraudulent claims and rate increases.

Assignment of Homeowners Policy Benefits In Florida [FORC Quarterly Journal of Insurance Law and Regulation]

May 12, 2016

Ken Levine authored the lead article in the Federation of Regulatory Counsel’s FORC Quarterly Journal of Insurance Law and Regulation

Recent Amendments to the Pennsylvania Insurance Holding Company Act: New Enterprise Risk Report [Insurance Corporate and Regulatory Alert]

August 29, 2012

Recent Amendments to the Pennsylvania Insurance Holding Company Act: New Enterprise Risk Report - Insurance Corporate and Regulatory Alert - Pennsylvania’s Insurance Holding Company Act (IHCA) was recently amended by Act 136, signed into law on July 5, 2012. Act 136 made a number of changes to the IHCA.

Recent Amendments to the Pennsylvania Insurance Holding Company Act: Changes Affecting Corporate Governance and Intercompany Transactions and Agreements [Insurance Corporate and Regulatory Alert]

August 27, 2012

Recent Amendments to the Pennsylvania Insurance Holding Company Act: Changes Affecting Corporate Governance and Intercompany Transactions and Agreements - Insurance Corporate and Regulatory Alert - Pennsylvania’s Insurance Holding Company Act (IHCA) was recently amended by Act 136, which was signed into law on July 5, 2012. Act 136 makes a number of changes to the IHCA, including imposing new corporate governance requirements and processes and expanding the Pennsylvania Insurance Department’s authority to examine affiliates of an insurer.

Recent Amendments to the Pennsylvania Insurance Holding Company Act Changes Affecting Controlling Persons [Insurance Corporate and Regulatory Alert]

August 09, 2012

Recent Amendments to the Pennsylvania Insurance Holding Company Act Changes Affecting Controlling Persons - Insurance Corporate and Regulatory Alert - Pennsylvania’s Insurance Holding Company Act (IHCA) was recently amended by Act 136, which was signed into law on July 5, 2012. Act 136 makes a number of changes to the IHCA, including requiring new filings, mandating prior notice and/or approval for certain transactions, and expanding the Insurance Department’s regulatory authority.

State of Connecticut and Guy Carpenter Settle Landmark Antitrust Case for $4.25M: What's Next for the Reinsurance Industry? [Antitrust Alert!]

February 25, 2011

On January 31, 2011, one of the world’s largest reinsurance brokers, Guy Carpenter & Co. LLC, and its former affiliated reinsurer agreed to pay $4.25 million to settle a lawsuit brought by the Connecticut attorney general alleging these companies engaged in a series of conspiracies to create closed reinsurance markets and drive up reinsurance costs. This settlement, which concludes an investigation and landmark litigation that spanned more than three years,

Recent Developments in Excess Insurance, Surplus Lines Insurance and Reinsurance Law [Tort Trial & Insurance Practice Law Journal, Winter 2010]

November 01, 2010

The Nonadmitted and Reinsurance Reform Act of 2009 would reduce the complexity of complying with state insurance regulations and tax regimes applicable to policies issued by nonadmitted insurers that cover risk exposures in more than one state.

Pennsylvania Insurance Department Issues Exemption from Filing/Prior Approval Requirements for Policy Forms Revised Only to Comply with PPACA Immediate Market Reform Requirements [Insurance Corporate and Regulatory Alert!]

August 05, 2010

Pennsylvania Insurance Department Issues Exemption from Filing/Prior Approval Requirements for Policy Forms Revised Only to Comply with PPACA Immediate Market Reform Requirements - Insurance Corporate and Regulatory Alert! - The Pennsylvania Insurance Department (the “Department”) recently issued Notice 2010-07 (Patient Protection and Affordable Care Act – Guidance for Compliance Filings). Notice 2010-07 provides an exemption from the forms filing/prior approval requirements under Pennsylvania’s Accident and Health Filing Reform Act for insurers that issue health insurance coverage subject to the PPACA immediate market reform requirements (i.e. health reform requirements that must be implemented

Strings Attached [BEST'S REVIEW]

June 01, 2010

Strings Attached - BEST'S REVIEW - The difficulties that many insurers
continue to face make
this a good time to remind
risk managers and reinsureds of one
of the dangers of transacting business
with a financially weak insurer.

New York Insurance Department Issues Draft Regulation Requiring Disclosure of Producer Compensation [Insurance Corporate and Regulatory Alert!]

February 09, 2009

New York Insurance Department Issues Draft Regulation Requiring Disclosure of Producer Compensation - Insurance Corporate and Regulatory Alert! - With the release of a proposed regulation entitled
“Producer Compensation Transparency”, the New York Insurance Department (the “Department”) has
taken a step toward requiring insurers to notify their insureds of the compensation paid to brokers and agents (‘producers”). Among the purposes of the proposed New York Insurance Regulation (the “Regulation”), issued as a discussion draft, is “to
protect the interests of the public by establishing minimum

Amendment to New York Reinsurance Regulation May Prevent Arbitration Between Ceding Companies and Their Unauthorized Reinsurers [Insurance Corporate and Regulatory Alert!]

February 03, 2009

Amendment to New York Reinsurance Regulation May Prevent Arbitration Between Ceding Companies and Their Unauthorized Reinsurers - Insurance Corporate and Regulatory Alert! - Interested parties are urged to submit comments to the New York Insurance Department on a proposed
amendment to the regulation that governs credit for reinsurance from unauthorized reinsurers. The amendment appears to preclude arbitration of disputes rising from reinsurance agreements with unauthorized reinsurers. The deadline for submitting comments is February 7, 2009. A
public hearing on the proposed rule is not scheduled.

New York Insurance Department Issues Opinion On Treatment Of Collateral Held By An Insurer In Liquidation Or Rehabilitation [Insurance Corporate and Regulatory Alert!]

February 02, 2009

New York Insurance Department Issues Opinion On Treatment Of Collateral Held By An Insurer In Liquidation Or Rehabilitation - Insurance Corporate and Regulatory Alert! - Certain insurance programs, particularly workers’
compensation programs with large deductibles,
require the insured to deposit collateral with the
insurer as security for performance by the insured of its payment obligations. The liquidation of Reliance Insurance Company in Pennsylvania brought collateral deposits into the spotlight and led Pennsylvania and Illinois to enact legislation addressing the right to such collateral in the event of the liquidation or insolvency of an

Eye on Regulation [BEST'S REVIEW]

February 01, 2009

Eye on Regulation - BEST'S REVIEW -

Congressman Ask Geithner For Insurance Oversight [Law 360]

January 23, 2009

Congressman Ask Geithner For Insurance Oversight - Law 360 -

New York Insurance Department Regulatory Actions [Insurance Corporate and Regulatory Alert!]

November 24, 2008

New York Insurance Department Regulatory Actions - Insurance Corporate and Regulatory Alert! - PARTIAL REGULATION OF CREDIT DEFAULT SWAPS SUSPENDED IN LIGHT OF FEDERAL PROGRESS ON COMPREHENSIVE APPROACH As previously reported in our Fall 2008 Insurance Regulatory Observer, the New York Insurance Department (the “Department”) announced that it intended to regulate certain types of credit default swap (“CDS”) contracts beginning January 1, 2009.1 In light of the
progress being made on the federal level to create central counterparties and oversight for

Fall 2008 [Insurance Corporate and Regulatory Observer]

November 01, 2008

Fall 2008 - Insurance Corporate and Regulatory Observer -

In A Major Policy Shift, New York Places The Burden On Insurers To Prove Prejudice When A Claim Notice By An Insured Is Late [Insurance Corporate & Regulatory Alert !]

July 28, 2008

In A Major Policy Shift, New York Places The Burden On Insurers To Prove Prejudice When A Claim Notice By An Insured Is Late - Insurance Corporate & Regulatory Alert ! - New York Governor David A. Paterson signed legislation (the “Bill”) on July 23, 2008 that mandates a major change with respect to the issue of proving prejudice caused by a late notice of a claim by an insured. The Bill introduces a material prejudice standard and applies to insurance policies issued or delivered in New York on or
after January 19, 2009.

Insurance Department Issues Advice on Cancellation of Municipal Bond Insurance Policies [Insurance Corporate & Regulatory Alert!]

May 20, 2008

Insurance Department Issues Advice on Cancellation of Municipal Bond Insurance Policies - Insurance Corporate & Regulatory Alert! - The New York Insurance Department (the “Insurance Department “) has issued
a circular letter advising financial guaranty insurers (“FGIs”) that in light of the recent and potential downgrades in the ratings of FGIs, the Insurance Department will not object to the cancellation or termination of in-force bond insurance policies on the basis that such termination or cancellation conflicts with non-cancellation provisions in these filed policies.

U.S. Treasury Department Calls For Overhaul of Insurance Regulation [Insurance Corporate & Regulatory Alert!]

April 15, 2008

U.S. Treasury Department Calls For Overhaul of Insurance Regulation - Insurance Corporate & Regulatory Alert! - The U.S. Treasury Department’s Blueprint for a Stronger Regulatory Structure (the “Blueprint”), released on March 31, 2008, includes many recommendations for changes to the regulation of financial services, including sweeping recommendations calling for the federal regulation of insurance.

State and Federal Developments in the Regulation of Bond Insurers [Insurance Corporate & Regulatory Alert!]

January 29, 2008

State and Federal Developments in the Regulation of Bond Insurers - Insurance Corporate & Regulatory Alert! - At year-end 2007, the New York Insurance Department (“Department”) created headlines
by expediting the licensing of Berkshire Hathaway Assurance, an insurer formed
by Warren Buffet to write financial guaranty insurance for municipal bond offerings.
Now, as problems spawned by the subprime mortgage market are threatening the
financial stability of major bond insurers, the Department has continued its proactive

New York’s High Court Decides That Liquidation Bureau Is Not a State Agency [Insurance Corporate & Regulatory Alert!]

October 18, 2007

New York’s High Court Decides That Liquidation Bureau Is Not a State Agency - Insurance Corporate & Regulatory Alert! - The New York State Court of Appeals, New York’s highest court, has unanimously
held that the New York Liquidation Bureau (the “Bureau”) is not a state agency under
the State Finance Law, and that the New York State Comptroller (the “Comptroller”)
does not have the constitutional or statutory authority to conduct a pre-audit of
Bureau expenditures, post-audit of the financial management and operating practices

Appellate Court Rules Contingent Commissions Are Legal in New York [Insurance Corporate & Regulatory Alert]

September 26, 2007

Appellate Court Rules Contingent Commissions Are Legal in New York - Insurance Corporate & Regulatory Alert - The payment of contingent commissions to insurance brokers and agents has received
a substantial amount of attention since 2004. Probes initiated by New York Attorney
General Elliot Spitzer (now Governor) into both bid-rigging practices and the
payment of contingent fees to brokers who steer business to particular insurance
companies have resulted in lawsuits and

New York Insurance Department Proposes Legislation to Bar Denial of Claims on the Ground of Late Notice. [Insurance Corporate & Regulatory Alert - 8/13/2007]

August 13, 2007

New York Insurance Department Proposes Legislation to Bar Denial of Claims on the Ground of Late Notice. - Insurance Corporate & Regulatory Alert - 8/13/2007 - Within two days after New York Governor Eliot Spitzer vetoed legislation that would have prevented a property/casualty insurer from denying a claim on the ground of late notice without a showing of material prejudice, the New York Insurance Department(the “Department”) proposed amendments to the New York Insurance Law to accomplish that objective.

New York Governor Vetoes Major Insurance Legislation [Insurance Corporate & Regulatory Alert - 8/08/2007]

August 08, 2007

New York Governor Vetoes Major Insurance Legislation - Insurance Corporate & Regulatory Alert - 8/08/2007 - In an August 1, 2007 veto message, New York Governor Eliot Spitzer rejected legislation amending the New York Civil Practice Law and Rules to permit a declaratory judgment action to determine the extent of insurance coverage available to a party to a lawsuit. The vetoed legislation also added a provision to the New York Insurance Law to prevent an insurer from denying coverage on the basis of late notice
unless material prejudice could be shown.

Summer 2007 [Business Law Observer]

July 10, 2007

Summer 2007 - Business Law Observer -

Events & Seminars

Past Events

Cybersecurity: Protecting Sensitive Information

October 23, 2012 - Philadelphia, PA

"A Vew From All Sides"

September 20, 2012 - Philadelphia, PA

Reinsurance Agreements

April 28, 2008 - New York, NY

In The News

F. Warren Jacoby Discusses Captive Insurance Benefits in Law360

January 13, 2016

F. Warren Jacoby, a member of Cozen O'Connor's Litigation department, discusses wealth transfer benefits of captive insurance.

Ken Levine Quoted in Business Insurance Regarding The National Association of Insurance Commissioners

April 28, 2014

Ken Levine, of the Insurance Corporate & Regulatory Group, was recently quoted in a Business Insurance article titled, "NAIC Urges More Reform on its Model Act Regulating Insurers." The article examines the praise and apprehension that The National Association of Insurance Commissioners is receiving for its decision to open its model act on regulating insurers. Ken offered his thoughts by stating, "It does need to be made more consistent among the states, but it needs to be flexible enough to fit the concentration of business within the holding company."