Earlier this month, New Jersey Department of Bank and Insurance Commissioner Thomas Considine issued Bulletin No. 10-19 reminding surplus lines brokers that the $50 limitation remains in effect for fees charged by surplus lines brokers to originating brokers. P.L. 2010, Chapter 42, which was enacted on July 6, 2010, amends N.J. Stat. Ann. § 17:22A-38b to allow for the Commissioner to set the fee limitation by regulation, however, it is not effective until October 1, 2010. read more
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Plaintiff moved to vacate an arbitration award issued in favor of defendant Stroehmann Bakers on the grounds that, among other things, the arbitrator’s decision was in “manifest disregard of the law.” The U.S. District Court for the District of New Jersey, relying upon Third Circuit case law, noted that plaintiff was required to establish that the arbitrator’s award had absolutely no support from the record in order to prevail on this basis. The court found that plaintiff had failed to meet the standard for manifest disregard of the law, and thus denied plaintiff’s motion to vacate. read more
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Nearly three years after a federal district court dismissed with prejudice a nationwide class action alleging antitrust and RICO claims against insurers and brokers in connection with contingent commission arrangements, the Third Circuit Court of Appeals has revived a limited swath of plaintiffs' claims. The Third Circuit concluded that plaintiffs' allegations regarding contingent commission arrangements alone were insufficient to support antitrust and RICO claims. 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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In a news release issued by the State of New Jersey Department of Banking and Insurance ("DOBI") on May 7, 2010 (the "News Release"), DOBI Commissioner Tom Considine applauded two pieces of proposed legislation which, he said, “would make some common sense changes to regulation and allow captive insurers, and carriers of reinsurance and surplus lines to operate more expansively in New Jersey." read more
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Late last year, the United States District Court for the District of New Jersey dismissed a securities fraud litigation that had been brought against a payment card processor in connection with the theft, by cybercriminals, of credit and debit card information from the company’s computer system. read more
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An amendment was signed into law on January 17, 2010 which requires insurance producers to notify the Commissioner of the New Jersey Department of Banking and Insurance of disciplinary actions taken against them by the Financial Industry Regulatory Authority (FINRA) or other similar non-governmental regulatory authorities that have statutory authority to create and enforce industry standards of conduct. read more
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On January 15, 2010, New Jersey Governor-elect Chris Christie announced that Tom Considine will be the new Commissioner of the New Jersey Department of Banking and Insurance (“DOBI”). Mr. Considine is currently the vice president and government relations counsel for MetLife, a position he rose to since he started at MetLife in 1993. read more
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On April 26, 2004, the New Jersey Department of Banking and Insurance (“NJDBI”) issued Bulletin No. 04-05 advising property & casualty insurers that they may use credit scoring in determining an insured’s rate provided that consumer protection measures are established, including, but not limited to providing rate, underwriting and classification exceptions for consumers whose credit information has been directly influenced by extraordinary life events, such as a serious illness, temporary loss of employment; divorce; or identity theft, to name a few. read more
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The New Jersey Department of Banking and Insurance (the “Department”) released a draft rule, N.J.A.C. 11:17B-4 (PRN 2009-242) (the “Proposed Rule”), setting forth the specific requirements of N.J.S.A. 17:22A-41.1. N.J.S.A. 17:22A-41.1, which became effective on January 5, 2008, requires that insurance producers selling, soliciting or negotiating health insurance policies provide the purchaser with written notification of “the amount of any commission, service fee, brokerage, or other valuable consideration” received.
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Ruling from the bench, a New Jersey state court judge recently ordered an attorney to notify its liability carrier of a malpractice claim. read more
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The New Jersey Department of Banking and Insurance recently issued Bulletin 09-21, which advises that amendments to N.J.S.A. § 17:22-6.59 and 17:22-6.64 were enacted on June 29, 2009. The amendments change the surplus lines premium tax rate from three percent to five percent. 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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On June 26, 2009, the New Jersey Department of Banking and Insurance (“DOBI”) issued a press release announcing the Senate confirmation of Douglas A. Wheeler as the new Director of the Division of Insurance. read more
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On May 4, 2009, New Jersey State Senator Nia H. Gill introduced Senate Bill 2766 into the New Jersey State Senate to temporarily prohibit the use of credit-based insurance scoring by property-casualty insurers in rate-making for personal lines insurance coverage. The bill, as currently drafted, would suspend such use of credit-based insurance scoring until June 30, 2011. read more
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Last week, the New Jersey Senate Commerce Committee began its review of the New Jersey Consumer Catastrophe Preparedness and Protection Act, S. 2089 (the “Bill”), by hearing testimony from representatives of the insurance industry and first responders. We previously reported about a version of the Bill that was introduced last year, but was never enacted. read more
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Legislation is under consideration in Connecticut and New Jersey that may significantly expand a claimant’s ability to directly sue an insurer over unfair claims settlement practices. read more
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In September 2008, the New Jersey Legislature enacted Senate Bill 1165 (the “Act”) setting forth standards and procedures with respect to the direct solicitation of consumers regarding annuity products. The Act is designed to prevent the fraudulent and misleading marketing of annuity products by insurers, brokers and agents, and to provide standards for the disclosure of information about such products to consumers. read more
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The federal district court for the district of New Jersey recently denied an insured’s motion for reconsideration of its prior award of summary judgment in favor of its insurer. Pine Belt Automotive, Inc. v. Royal Indemnity Co., et al., Civil Action. No. 06-5995 (D.N.J. Feb. 19, 2009). read more
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A federal district court in New Jersey has granted final approval of a $69 million settlement by Marsh & McLennan Cos. Inc. and other Marsh defendants in In re Insurance Brokerage Antitrust Litigation, 2:04-cv-5184 (D.N.J.), and In re Employee Benefit Insurance Brokerage Antitrust Litigation, 2:04-cv-1079 (D.N.J.). read more
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The New Jersey Supreme Court has held that an umbrella policy issued by an excess/surplus lines insurer was not subject to the state’s automatic renewal statute. New Jersey has a statute which provides that no policy shall be "nonrenewed" on its expiration date unless a valid written notice of nonrenewal has been sent to the insured. 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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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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New Jersey has become the latest state to allow pay-as-you-drive auto insurance plans, which are also permitted in Alabama, Michigan, Minnesota and Oregon. A pay-as-you-drive auto insurance plan is one that charges a driver based on the numbers of miles driven and how abruptly drivers brake and accelerate. Two large insurers, GMAC Insurance and Progressive, currently offer such plans. read more
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Last month, New Jersey Senate Majority Leader Stephen Sweeney reintroduced the New Jersey Consumer Catastrophe Preparedness and Protection Bill, S.2089 (the "Bill"), which, if enacted, would create the New Jersey Catastrophe Fund (the “Fund”). read more
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On June 26, 2008, U.S. Senator Frank Lautenberg (D-NJ) reintroduced a measure intended to ensure that children have access to healthcare. The measure was inserted into the Fiscal Year 2009 Labor-Health and Human Services-Education Appropriations bill (the "Bill"). read more
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A secondhand exposure lawsuit in New Jersey state court resulted in a February 2008 jury award of $30.3 million to the family of Mark Buttitta, who died from mesothelioma. read more
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The Supreme Court of New Jersey recently held that the New Jersey Punitive Damages Act allows punitive damages to be entered for the purposes of punishing and deterring only a specific wrongdoer, not for general deterrence. read more
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In a matter of first impression under New Jersey law that potentially impacts both the reinsurance and insurance industry and policyholders of insolvent insurance companies, the New Jersey Supreme Court affirmed the appellate division's ruling that the Fourth Amended Final Dividend Plan (the "FDP") proposed by the Liquidator for Integrity Insurance Company ("Integrity") should not be approved because it unlawfully allowed incurred but not reported (“IBNR”) claims to share in the insolvent insurer's estate. 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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On Monday, September 10th, New Jersey Governor Jon Corzine signed into law a bill ( S-1666/A-3038) banning the use of step-down provisions. Step-down provisions are used in businesses’ motor vehicle liability insurance policies and apply to employee claims.
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The Third Circuit Court of Appeals recently ruled that the New Jersey federal district court improperly dismissed derivative claims against certain of Merck & Co.'s officers and directors. read more
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On June 20, 2007, the Superior Court of New Jersey, Appellate Division reaffirmed that New Jersey Courts do not consider a Service of Suit Clause in an insurance policy to constitute an exclusive forum selection clause in favor of the insured. read more
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On June 12, 2007, the Third Circuit affirmed a New Jersey district court's ruling that arbitrators, and not the court, should determine whether a reinsurance dispute involving numerous asbestos claims should be arbitrated in a single, consolidated proceeding. read more
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