IVASS Clears The Way For Warranty And Indemnity Insurance

Author:Mr Bruno Giuffré and Angelo Borselli
Profession:DLA Piper
 
FREE EXCERPT

The Italian Insurance Supervisory Authority (the IVASS) has cleared the way for W&I insurance in Italy with its recent FAQ.

Article 4 of Regulation 29 of 16 March 2009 from the previous insurance authority (the ISVAP), entitled “Uninsurable risks,” precludes insurance undertakings from providing coverage for the “reimbursement of contingent liabilities or losses on assets due to assessments resulting from [extraordinary corporate transactions].”

The new FAQ states that this prohibition does not apply to W&I insurance, subject to certain requirements.

In particular, there are no specific restrictions for seller-side policies, as the FAQ simply says that they must insure the risk resulting from the indemnity obligations of the seller in the event of a breach of its representations and warranties ‒ in practice, what they are typically intended to insure.

As for buyer-side polices, the FAQ requires that their scope should be limited to...

To continue reading

REQUEST YOUR TRIAL