The Massachusetts Appeals Court recently affirmed the Superior Court’s granting of an insurer’s motion to dismiss after finding that the standard mortgage clause in a business owner’s policy did not confer coverage on a mortgagee for loss of rent where the mortgagor had executed an assignment of rent in the event of default. read more
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In a case of first impression, the Massachusetts Appeals Court has ruled that an insured’s waiver of its carrier’s subrogation rights can survive the completion of a construction project. Middleoak Ins. Co. v. Tri-State Sprinkler Corp., No. 09-P-1265 (Mass. App. Ct. Aug. 5, 2010). The court’s decision puts Massachusetts in the majority of jurisdictions to have considered the issue. read more
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Earlier this month, the Massachusetts Division of Insurance (the “Division”) struck a deal with Health New England to settle a dispute over rate increases. In the winter of 2009, Health New England, a Springfield, Massachusetts health insurer, attempted to increase its health insurance premiums by a range of 11.5% to 21.3% for about 21,000 customers. The Division denied this increase on April 1, 2010, along with other insurers who sought double-digit increases. read more
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As mentioned in our prior post, New York Attorney General Andrew Cuomo has begun an investigation into the alleged misuse of retained asset accounts by life insurance companies. This probe started with two of the largest life insurers and has now been widened to include six more. The latest subpoenas were sent on Friday, July 30th. read more
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Last week, the Massachusetts legislature passed House Bill No. 4935, An Act relative to insurance coverage for autism ("H. 4935"), which requires that benefits be provided on a nondiscriminatory basis for the diagnosis and treatment of Autism Spectrum Disorders. H. 4935 prohibits dollar or unit of service limitations on coverage for the diagnosis and treatment of autism that are lower than dollar or unit of service limitations applicable to the diagnosis and treatment of physical conditions. read more
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The U.S. District Court for the District of Minnesota recently dismissed a directors and officers liability coverage suit, rejecting plaintiffs' argument that an underlying suit had to be brought by the insured in his capacity as an insured in order to implicate the policy's insured vs. insured exclusion. read more
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The Massachusetts Appeals Court recently reaffirmed that jurisdiction’s broad understanding of a general liability carrier’s duty to defend, holding that an insurer had a duty to defend against a claim of trespass first asserted after the expiration of its policy period. read more
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According to an estimate provided by Lloyd’s of London, over £6.2 billion worth of insurance coverage has been purchased by individuals and entities in connection with the 2010 FIFA World Cup, which begins today. Over half of that amount is for coverage for stadiums and training facilities, which reflects the vast amount of money that has been spent constructing and upgrading stadiums ($5.5 billion, according to the New York Times). read more
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The Massachusetts Supreme Judicial Court recently held that G.L. c. 186 §15, which makes void any indemnification agreement or provision whereby a tenant is obligated to indemnify a landlord, in whole or in part, for the landlord’s own negligence, does not apply to insurance provisions in the lease agreement. read more
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Recently, the Supreme Judicial Court of Massachusetts upheld two lower court decisions dismissing, on separate motions to dismiss and for summary judgment, a number of claims brought by credit unions against a retailer in connection with a breach of debit and credit card data. read more
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The Massachusetts Division of Insurance has announced that it is relocating its offices to 1000 Washington Street, 8th floor, Boston MA 02118-2218 effective March 22, 2010. read more
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Joseph G. Murphy, the acting Massachusetts Insurance Commissioner, has been named the new Massachusetts Insurance Commissioner. Murphy temporarily took over the duties of insurance commissioner after Nonnie Burns stepped down in September 2009. read more
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At the end of December 2009, Massachusetts Attorney General Martha Coakley released a comprehensive report criticizing Massachusetts managed competition system for the deregulation of auto insurance. Prior to the managed competition system being introduced in 2007, auto insurance rates were set by the Massachusetts Division of Insurance for all insurers. read more
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Privacy and data breaches are part of every company's nightmare of what can go wrong. There is no company in any industry that is not exposed to risks and liabilities related to unauthorized access to personal information of individuals. The risk of data breaches, and the regulations governing company obligations to secure data, and to provide notification in the event of a breach, are increasing dramatically. read more
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The Insurance and Reinsurance Department of Edwards Angell Palmer & Dodge invite you to join them for the following complimentary webinar: "The Continuing Nightmare of Data Breach and Privacy Risks and Regulations: Increasing Risks, New Regulations, and Changing Deadlines." read more
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October 30, 2009 brought several noteworthy developments to the enforcement of the Red Flags Rule and finalization of the Massachusetts security regulation, all of which may affect what you must do to comply. read more
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The Massachusetts Joint Committee on Financial Services recently held a hearing regarding H.B. 960 (the “Bill”), which would permit commercial fire policyholders to exclude terrorism from their coverage. read more
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The Massachusetts Secretary of the Commonwealth, William Galvin, recently announced an investigation into how credit rating agencies evaluate and rate the securitization of life settlements (i.e. life insurance policies sold by the insured to a third party).
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On September 22, 2009, Socheth Sor of Edwards Angell Palmer & Dodge LLP testified at a public hearing before the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) in Boston regarding 201 CMR 17.00, Standards for the Protection of Personal Information of Residents of the Commonwealth (the “Regulations”). read more
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According to industry reports, Massachusetts Insurance Commissioner, Nonnie S. Burnes, recently announced her plan to resign from the Insurance Department to become a senior university fellow at Northeastern University, where she earned her law degree. read more
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In a case concerning an IRS audit -- but having potentially far-reaching implications for all manner of litigation and discovery -- United States v. Textron, Inc., No. 07-2631 (1st Cir. Aug. 13, 2009), the First Circuit en banc recently held that the “attorney work product” doctrine protects only documents prepared for use in litigation. read more
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On August 17, 2009, the Massachusetts Office of Consumer Affairs and Business Regulation (the “OCABR”) issued a press release announcing important amendments to 201 CMR 17.00: Standards for the Protection of Personal Information of Residents of the Commonwealth (the “Regulations”), and a third extension of its effective date from January 1, 2010 to March 1, 2010. The OCABR also called a public hearing scheduled for September 22, 2009 in connection with the Regulations. read more
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The Massachusetts Supreme Judicial Court recently held that where an insured “incurs covered costs as a result of ongoing environmental contamination occurring over more than one year and the insurer provided coverage for less than the full period of years in which contamination occurred,” the loss should be pro rated among all the insurers on the risk during the relevant period. read more
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Late last month, the New Jersey legislature passed A2238/S1651 (the “NJ Act”), which requires group health insurers to provide coverage for the diagnosis and treatment of autism spectrum disorders. Specifically, policies must provide coverage for treatments that are deemed medically necessary by the autistic person’s physician including behavioral therapy, physical therapy, speech therapy, and occupational therapy. read more
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Massachusetts has adopted final data security regulations that are now fully effective Jan. 1, 2010, and will affect almost every business in the state (and others outside Massachusetts), large and small, including law firms. read more
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In a recent decision, the Supreme Judicial Court of Massachusetts ruled that an insurer, in contrast to an insured, cannot obtain attorney’s fees incurred in successfully establishing another insurer’s duty to defend. John T. Callahan & Sons, Inc. v. Worcester Ins. Co., SJC-10180 (March 19, 2009). read more
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As we previously reported here, former Massachusetts Governor Mitt Romney signed a health care bill, known as “An Act Providing Access to Affordable, Quality, Accountable Health Care” (the “Act”), into law on April 12, 2006. The Act became effective on July 1, 2007 and requires that all Massachusetts residents carry health insurance, unless they have a waiver for religious reasons or have a waiver from the Commonwealth Health Insurance Connector Authority (the “Connector”). Individuals that do not have a waiver and do not have health care insurance face fines of more than $1,000 per individual for the 2009 tax year. read more
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The Privacy Group at Edwards Angell Palmer & Dodge LLP invites you to a complimentary webinar on the new security and privacy requirements and federal Red Flag duties which are both effective May 1, 2009. read more
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On February 11, 2009, the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) announced that the effective compliance date of the security regulation, 201 CMR 17.00 (the “Regulation”), has been extended a second time from May 1, 2009 to January 1, 2010. read more
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According to a recent report in USA Today ( available here), criminal attempts to use the internet to steal personal data – including credit card numbers, account user names, passwords, and Social Security numbers – have increased since the financial crisis began last fall, and could continue to accelerate if laid-off IT personnel turn to cybercrime to replace lost income. read more
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The Privacy Group at Edwards Angell Palmer & Dodge LLP invites you to a complimentary webinar on the new security and privacy requirements and federal Red Flag duties which are both effective May 1, 2009. read more
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The U.S. District Court for the District of Massachusetts recently denied an insurer's motion to dismiss a False Claims Act suit based on subject matter and scienter arguments. read more
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The Boston Globe has reported that the Attorney General for the Commonwealth of Massachusetts, Martha Coakley, has launched an investigation into Blue Cross Blue Shield of Massachusetts and Partners HealthCare. Partners HealthCare owns several Massachusetts hospitals, including Massachusetts General Hospital and Brigham and Women’s Hospital. read more
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The United States District Court for the District of Massachusetts recently held that delivery of a policy is not a prerequisite to the enforcement of its terms unless a policy so explicitly states. The court also held that an insurer can deny coverage for the failure to satisfy “claims made and reported” policy prerequisites without first investigating the claim. read more
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The Massachusetts Supreme Judicial Court recently held that an intellectual property exclusion barring coverage for claims “arising out of” the misappropriation of trade secrets extended to the misappropriation of trade secrets by a third party. read more
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The Supreme Judicial Court of Massachusetts recently held that claims against a livery service for negligently dropping off a drunken passenger in a location where he was likely to drive home “arose out of” the use of the livery service’s van, as the term “arise out of” is broadly interpreted in construing the scope of coverage under auto policies. read more
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The United States District Court for the District of Massachusetts recently held that an insurer had no duty to defend or indemnify its insureds where the insureds’ claims “arose out of” acts that occurred prior to the policy’s retroactive date. read more
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On December 17, 2008, Massachusetts Governor Deval Patrick signed House Bill No. 4508, An Act Protecting Military Services Members (the “Act), into law. The purpose of the Act is to protect members of the armed forces from dishonest and predatory insurance practices by declaring certain acts or practices to be false, misleading, deceptive or unfair. read more
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On January 21, 2009, Edwards Angell Palmer & Dodge's Privacy Group will host a complimentary breakfast seminar (in the firm's Boston office) on the new security and privacy requirements in Massachusetts. read more
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As reported in a previous post, the new Massachusetts security regulations affect almost every employer in the Commonwealth and many other companies with other relationships with Massachusetts residents. They will require significant security and other policy changes, including encryption of laptops and wireless communications containing personal information. read more
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Massachusetts already has one of the most aggressive data security regulations in the country, and robust new guidelines were just issued to implement this regulation, effective January 1, 2009. read more
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On November 5, 2008, a jury in the Suffolk County Superior Court in Massachusetts reportedly awarded a $9.4 million verdict to the family of a woman who had received experimental cancer treatment at the Dana-Farber Cancer Institute. After interest, the award to the family of the decedent reportedly totaled approximately $13.5 million. read more
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In a recent decision, the Massachusetts Superior Court held that reinsurance communications were not discoverable in a declaratory judgment action involving environmental claims. read more
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The United States Bankruptcy Court for the District of Massachusetts recently denied a mortgage purchaser’s Motion for Relief from Automatic Stay of Chapter 13 proceedings on the ground that the purchaser lacked standing where it could not provide documentary evidence showing each transfer of the mortgage. read more
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A Massachusetts state court recently found that a professional services exclusion applied to claims against a contractor for improper “siting” of a house. read more
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The First Circuit Court of Appeals recently held that the fraud and dishonesty exclusion in an errors and omissions policy issued to a mortgage originator and broker excluded coverage for the fraudulent acts of one of its employees in the loan origination process. read more
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An increase in data breaches affecting various industries, including banking, insurance and other financial services, has been profiled recently. These developments require companies to anticipate problems, develop new responsive policies and protective procedures, and react quickly to near-crisis situations resulting from data breaches. read more
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Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar on the above topic on Monday, September 29, 2008 at 12:00 PM EDT / 5:00 PM BST. read more
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Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar on the above topic on Monday, September 29, 2008 at 12:00 PM EDT / 5:00 PM BST. read more
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Today, Thursday, August 28, Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar entitled "Insurance Implications of Climate Change". This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. read more
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Reports indicate that state and federal regulators are now turning their attention to Fidelity's and Schwab's participation in the Auction Rate Securities (ARS) market. read more
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Massachusetts Attorney General Martha Coakley recently announced a settlement with Morgan Stanley & Company (“Morgan Stanley”) to resolve allegations that Morgan Stanley sold high risk auction rate securities (ARS) to Massachusetts municipalities and presented the securities as safe investments. read more
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The Massachusetts Appeals Court recently ruled that an Insured's willful, unexcused refusal to submit to an examination under oath violated the cooperation clause in its policy resulting in a material breach on the part of the Insured. read more
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On Thursday, August 28, Edwards Angell Palmer & Dodge's Insurance and Reinsurance Department will host a webinar entitled "Insurance Implications of Climate Change". This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. read more
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According to a recent report in the Boston Globe, an affiliate of the New England Patriots has filed suit against its bond insurer, AMBAC, in an attempt to avoid $2.8 million in accelerated premium payments linked to the troubled auction rate securities (“ARS”) market. read more
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In the wake of a lawsuit by the Massachusetts Securities Division alleging fraudulent sales of auction rate securities (“ARS”), UBS AG reportedly plans to buy back as much as $3.5 billion in ARS-impacted preferred shares issued by tax-exempt closed-end funds. read more
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The Massachusetts House of Representatives is currently considering a homeowners insurance reform bill that has already been unanimously approved by the state Senate. read more
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The Enforcement Section of the Massachusetts Securities Division recently filed an administrative complaint against UBS Securities, LLC and UBS Financial Services, Inc. alleging conflicts of interest and use of misleading sales practices in the marketing of auction rate securities (“ARS”). read more
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The United States District Court for the District of Massachusetts recently granted a motion to dismiss a “demand excused” shareholder derivative suit on the basis that the suit was mooted by the plaintiffs’ subsequent demand letter. read more
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The U.S. First Circuit Court of Appeals recently certified to the Massachusetts Supreme Judicial Court critical questions regarding allocation of loss to multiple insurers for long-term environmental contamination. read more
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UBS Financial Services, Inc. and UBS Securities LLC entered into an agreement Wednesday with the Massachusetts Attorney General to return over $35 million to Massachusetts towns, cities and government entitities that UBS had invested in auction rate securities. The settlement resolves an investigation initiated in February 2008 into allegations that UBS had misrepresented to state entities that auction rate securities were "a permissible investment for the municipalities under Massachusetts law." read more
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On April 3, 2008, Commissioner Nonnie Burns of the Massachusetts Division of Insurance issued a new bulletin permitting insurance companies to offer the option of purchasing automobile policies with six-month terms. read more
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Last fall, we posted about a New England furniture company that, backed by prize indemnification insurance, offered customers the chance to get their furniture purchase for free if the Boston Red Sox won the World Series. Click here. We later posted about the approximately 30,000 fans that won reimbursement of their furniture purchase when the Red Sox defeated the Colorado Rockies in the World Series. Click here.
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Michael Travaglini, who oversees the Massachusetts Pension Reserves Investment Management Board, recently voiced his disagreement with California Treasurer Bill Lockyer’s plan to form a state-owned bond insurer, saying that pension funds should not be in the business of insuring securities. “I am very glad that in Massachusetts we are prohibited by our enabling statutes [from creating a bond insurer],” Travaglini said. He continued, “I’m in the investment business, not the lending business in any way, shape or form. read more
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A Massachusetts state trial court recently ruled that, even though an insured’s contractual coverage claim against its insurer was time-barred, its claim for insurer bad faith could proceed under a separate statutory limitations period. read more
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A Massachusetts trial court recently held that an insurer must pay the attorneys’ fees incurred by its insured in the successful defense of a duty to defend declaratory coverage action brought by the insurer. read more
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The proposed rates of 15 auto insurers have been reviewed and approved by the Massachusetts Division of Insurance since the implementation at the beginning of this year of a “managed competition” system for setting auto insurance rates. read more
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On June 1, 2005, after a jury trial lasting over three weeks, a jury found for Blue Cross Blue Shield of Massachusetts (“BCBS-MA”), Blue Cross Blue Shield of Minnesota (“BCBS-MN”), Federated Mutual Insurance Company (“Federated”), and Health Care Service Corporation (“HCSC”) (collectively “Plaintiffs”) against Mylan Laboratories Inc. and Mylan Pharmaceuticals Inc., Cambrex Corporation, and Gyma Laboratories (“Defendants”) on state law claims – agreement in unreasonable restraint of trade; conspiracy in unreasonable restraint of trade; monopolization; and, attempted monopolization – in the Lorazepam active pharmaceutical ingredient (“API”) market, Lorazepam tablet market and in the Clorazepate API and tablet markets. The jury awarded BCBS-MA $8,430,887, BCBS-MN $1,756,096, Federated $410,878.00, and HCSC $1,448,437.00 in damages. read more
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Massachusetts has become one of the most aggressive states in the country regarding protecting personal data. It has adopted a new data breach law, a new document destruction law and proposed regulations that may represent one of the most far-reaching information security requirements anywhere in the U.S. Taken together, these will have major compliance implications and will likely require more rigorous, written security policies for any company doing business in Massachusetts or holding Massachusetts personal data, wherever located. read more
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In a press release dated January 4, 2008, Massachusetts Attorney General Martha Coakley’s Office reported that it filed a complaint in Suffolk Superior Court against Ohio-based insurer Great American Insurance Group ("Great American"). read more
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With potential implications for anyone doing business with a Massachusetts resident, the Massachusetts Office of Consumer Affairs and Business Regulation ("OCABR") held a public hearing today concerning the proposed regulation 201 Mass. Code Regs. 17.00, the new Standards for the Protection of Personal Information of Residents of the Commonwealth. read more
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In an opinion released yesterday, the Massachusetts Supreme Judicial Court affirmed the state insurance commissioner’s approval of proposed increases in property and casualty insurance rates. Ruling against the state Attorney General, the Court upheld the discretionary power of the Massachusetts Commissioner of Insurance to approve rate increases that exceed statutory maximums based on consideration of predicted hurricane loss effects and the cost of catastrophic risk reinsurance. read more
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Under Massachusetts new managed competition process to set auto insurance rates, previously discussed here and here, the State’s 19 automobile insurance companies were invited to make initial rate filings and then to submit amended rate proposals after reviewing their competitors’ proposals.
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The Massachusetts Commissioner of Insurance Nonnie S. Burnes released a Division of Insurance Bulletin on December 20, 2007, which requires that any licensed insurer must, upon the payment of $5,000 or more in the settlement of a third-party liability claim that is delivered to the claimant's attorney, provide a concurrent written notice to the claimant. read more
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A Massachusetts trial court recently ordered a defendant insurer to produce reinsurance agreements during discovery in a coverage dispute. Neles-Jamesbury, Inc. v. Liberty Mutual Ins. Co., C.A. No. 02-0982A (October 11, 2007). read more
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A Massachusetts Special Commission recently recommended that Massachusetts create a catastrophe fund to reduce the cost of coastal insurance within the Commonwealth. Click here to review the Special Commission’s Report.
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On October 5, 2007, Nonnie S. Burnes, Commissioner of Insurance for the Massachusetts Division of Insurance, filed Regulation 211 CMR 79 (Private Passenger Motor Vehicle Insurance Rates) with the Attorney General’s Office. The new regulation is intended to encourage competition and innovation in the automobile insurance market, while maintaining consumer protections. read more
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In Mello Constr. Co. v. Acadia Ins. Co., 874 N.E.2d 1142 (Mass. App. Ct. 2007), an unpublished decision, the court held that the commercial general liability (“CGL”) policy of a general contractor did not cover the defective work of a subcontractor who performed a portion of the work. In Mello, a subcontractor improperly constructed the concrete slab supporting the elementary school for which the insured was the general contractor. read more
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Three recent Massachusetts cases touched on issues of significance to insurers doing business in and around the Commonwealth. read more
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US law firm Edwards Angell Palmer & Dodge LLP ("EAPD") and Kendall Freeman of London today announced a plan to merge effective January 1, 2008. read more
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Following the Red Sox sweep of the Colorado Rockies, some 30,000 fans of the Boston Red Sox can now follow the lead of Alex Rodriguez and opt out of paying for their furniture purchased in the spring. read more
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A Massachusetts-based furniture store, Jordan’s Furniture, ran a “Monster Deal” promotion (named for the left field Green Monster in Fenway Park) this past spring that promised to customers a full refund on certain furniture purchased between March 7th and April 16th if the Red Sox were to win the World Series. The refund applies to sofas, dining tables, beds and mattresses. read more
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Over the last ten years, states have been moving, albeit slowly, to deregulate automobile insurance. Supporters of deregulation often cite the high premiums, distorted rates and lack of choices that drivers experience under a regulated system. They argue that in states that rely on markets to set rates, neither prices nor profits are excessive. read more
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In a case of first impression, the Massachusetts Supreme Judicial Court (“SJC”) ruled on August 6, 2007 that a “follow-form” excess liability insurer is not bound by the decision of a primary insurer to settle a claim. read more
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On April 12, 2006, Massachusetts Governor Mitt Romney signed a health care bill, known as "An Act Providing Access to Affordable, Quality, Accountable Health Care (the "Act")", into law. read more
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A Massachusetts court recently ruled that a “good health” requirement in a life insurance policy must be interpreted based upon what the contracting parties knew at the time the policy was issued (a subjective test), not based upon what in fact turned out to be true based on discoveries made at a later date (an objective test). read more
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Massachusetts’ highest court recently formally recognized joint defense agreements as an exception to waiver of the attorney-client privilege under the common interest doctrine. Hanover Ins. Co. v. Rapo & Jepsen Ins. Svcs., Inc., Docket No. SJC-09780 (August 3, 2007). read more
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On July 16, 2007, the Massachusetts Commissioner of Insurance, Nonnie S. Burnes, issued two decisions which will introduce managed competition into the Massachusetts automobile insurance market. read more
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On July 12, 2007, the Massachusetts Supreme Judicial Court held that, where a vehicle causing an accident is owned by a governmental entity and is insured by an insolvent insurer, the Massachusetts Insurers Insolvency Fund is not obligated to compensate the injured individual unless and until the injured individual's own uninsured motor vehicle coverage has been exhausted. read more
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On May 30, the U.S Court of Appeals for the First Circuit held that an insured's broad allegations of pollution over a course of decades are enough to trigger a liability insurer's duty to defend environmental contamination lawsuits. read more
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A Massachusetts Appeals Court recently issued an opinion that highlights the importance of policy provisions and renewal application questions requiring insureds to update the insurer concerning changes in circumstances. read more
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