New risks surface from policy sales among insurers

Article Abstract:

Courts are calling into question the practice of assumption reinsurance and in Security Benefit Life Insurance Co v Federal Deposit Insurance Corp an insurance company was held liable for this practice. The court held that a transfer of annuities constituted a contract novation due to the substitution of the party obligated under the contract and that this could not occur without shareholder consent to release the company from liability. The Financial Accounting Standards Board has also required that insurance companies deem transfers to be liabilities even in the absence of novation.

Author: Donovan, Karen
Publisher: ALM Media, Inc.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
Interpretation and construction, Laws, regulations and rules, Reinsurance, Insurance law

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Roundtable chafes at ALI's view on shareholder suits

Article Abstract:

The Business Roundtable is dissatisfied with the American Law Institute's (ALI) views on stockholder derivative suits as expressed in the ALI's soon-to-be-issued Principles of Corporate Governance. The ALI plan to mandate the demand requirement when some jurisdictions have excused it as futile has caused the dissatisfaction.

Author: Donovan, Karen
Publisher: ALM Media, Inc.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
Standards, Management, Corporations, Stockholders' derivative actions, Shareholder lawsuits, American Law Institute

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