The Connecticut Insurance Department (“Department”) issued Bulletin IC-25 (the “Bulletin”), dated August 18, 2010, to require all entities doing business in Connecticut that are licensed by or registered with the Department to notify the Department of any information security incident. read more
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Plaintiff Hartford Steam Boiler Inspection and Insurance Company (“Hartford”) appealed a decision permitting a court to remand a dispute over an arbitral award to the arbitration panel for clarification of that award. Hartford argued that the court’s holding was overruled by the U.S. Supreme Court’s decision in Hall Street Associates, LLC v. Mattel, Inc., 552 U.S. 576 (2008). read more
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Last week, the Connecticut Supreme Court issued a ruling in which it placed several restrictions on the uses that the Connecticut Attorney General (AG) may make of documents subpoenaed from a Florida-based insurer during an antitrust investigation. read more
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Spurred by media reports alleging deception by some life insurers in their use of retained asset accounts [1] for disbursing death benefits to the beneficiaries of fallen United States military personnel and the apparent lack of oversight by federal and state regulators, New York Attorney General, and gubernatorial hopeful, Andrew Cuomo has issued subpoenas to leading life insurers regarding their alleged “reaping [of] hundreds of millions in secret profits while misleading families into putting benefits into insurer controlled, low yield, potentially risky accounts.” read more
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A Connecticut District Court recently held that plaintiffs, who brought a subrogation action to recover a judgment entered in their favor in an underlying legal malpractice action against their attorneys, were entitled to litigate coverage issues even though the attorneys' insurer obtained a default judgment against the attorneys in a separate coverage action. read more
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The Connecticut Supreme Court recently affirmed summary judgment in favor of an insurance company on the basis that a wrongful termination lawsuit against an insured was related to a prior administrative action for unemployment benefits and was therefore excluded by the policy. 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 US District Court for the District of Connecticut recently dismissed a customer suit against an insurer, based upon its determination that all of the underlying claims were excluded by the policy’s Insolvency Exclusion. read more
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In a first-of-its-kind victory for a state attorney general, the office of Connecticut Attorney General Richard Blumenthal won its case against an insurance brokerage whom the court found to have failed to disclose to consumers the contingent commissions it received from certain insurers. read more
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On April 23, 2010, Connecticut Attorney General Richard Blumenthal gave written testimony during to a hearing held by the U.S. Senate’s Permanent Subcommittee on Investigations regarding the nation’s financial rating agencies. According to Attorney General Blumenthal, the three large financial rating agencies skewed their ratings of structured finance securities in order to garner more fee-based ratings business from the very same clients that were marketing those financial instruments.
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The Connecticut Superior Court recently awarded summary judgment in favor of an insurer on an uninsured motorist claim involving a pedestrian who threw a bottle at the automobile driven by the plaintiff, injuring the plaintiff in the process. read more
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Employers Reinsurance Company, now known as Westport Insurance Corporation (“Westport”), provided reinsurance coverage for insurance policies issued by Connecticut Specialty Insurance Company (the “Reinsurance Agreement”). Royal Surplus Lines Insurance Company, later known as Arrowood Surplus Lines Insurance Company (“Arrowood”), entered into an agreement by which it assumed Connecticut Specialty’s liabilities under certain policies, including a general liability policy issued to Equity Residential (the “Policy”). read more
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Insurance regulators in New York, Illinois and Connecticut have reached an agreement to allow Aon Corp., Marsh & McLennan Companies Inc. and Willis Group Holdings plc (the “Big Three”) to receive contingent commission compensation from insurance carriers. As a condition to this new agreement, the Big Three have agreed to abide by the new producer compensation disclosure regulation proposed by the New York Insurance Department (the “Department”) in all U.S. jurisdictions. read more
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In a class action lawsuit brought by various auto body shops and the Auto Body Association of Connecticut, a Connecticut jury recently rendered a $14.7 million verdict against an insurance company for allegedly violating the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. §42-110a et seq. (“CUTPA”). read more
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A Connecticut Superior Court recently awarded summary judgment in favor of an insurer on the basis that an insured’s family member who resides in the insured’s household is not entitled to underinsured motorist benefits if they are similarly not entitled to liability coverage under the family member’s policy. read more
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A Connecticut trial court recently held that the “general business practice” element of an unfair settlement practice claim under the Connecticut Unfair Insurance Practices Act, Conn. Gen. Stat. §38a-816(6) (“CUIPA”) requires that a plaintiff prove multiple unfair practices by an insurer against more than one insured. read more
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The Connecticut Appellate Court recently affirmed a trial court decision barring a police officer from recovering underinsured motorist benefits because he was not “occupying” a covered motor vehicle at the time he was injured and, consequently, is limited to his workers’ compensation remedy by the exclusivity provision contained in Conn. Gen. Stat. § 31-284 (a). read more
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The Connecticut Insurance Department issued a proposed regulation (the “Proposed Regulation”) relating to use of senior-specific certifications and professional designations in the sale of life insurance and annuities. The Proposed Regulation aims protect seniors from abusive sales practices and fraud and is based on the NAIC Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (the “Model”). read more
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The Connecticut Appellate Court recently affirmed a trial court’s summary judgment holding that an insurance company had no duty to defend or indemnify its insured in a negligence action brought by a women who was stabbed twenty-four times by the insured. The court’s decision was based on the fact that the phrase “physical abuse” contained in a homeowner’s policy exclusion was not ambiguous and did not contain an implicit intentionality requirement, and thus the exclusion applied. read more
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The Connecticut Appellate Court recently held that the “substantial factor test” for causation remains unchanged and that traditional causation rules apply to workers’ compensation cases. read more
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The Second Circuit Court of Appeals recently affirmed a United States District Court for the District of Connecticut’s judgment awarding summary judgment for an insurer seeking to rescind a life insurance policy on the basis that the policy application contained material misrepresentations of fact. read more
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The United States District Court for the District of Connecticut recently awarded summary judgment in favor of an insurer holding that the insurer had no duty to defend or indemnify the insureds under a rental car’s supplemental liability insurance policy due to the “use” exclusion. read more
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In Barber v. Berthiaume, No. NNH-CV-05-4009532-S (Oct. 19, 2009), a contractor was hired to expand and repair plaintiff’s home. As part of that work, the contractor was required to raise the home in order to construct new piers. During that process, the house toppled, causing damage in the amount of $26,000. read more
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In Vincoli v. Hartford Underwriters Ins. Co., FST-CV-09-5009591-S (Conn.Super. Sept. 24, 2009), a Connecticut Superior Court recently denied an Insurer's motion to strike counts alleging bad faith and violations of CUTPA from a complaint. The Insured was seriously injured when his car struck a tree after he was forced to take evasive action to avoid colliding with a phantom motorist. read more
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A Connecticut Superior Court recently awarded summary judgment against an insurer on the basis that the a home seller’s misrepresentation regarding the existence of lead paint in the home constituted an “occurrence” under her insurance policy and, therefore, the insurer had a duty to defend the seller in a lawsuit alleging negligent misrepresentation and was liable for paying the stipulated judgment agreed to by the parties. read more
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The Connecticut Superior Court recently granted the motion for summary judgment of a passenger’s insurer in a lawsuit concerning uninsured/underinsured motorist coverage on the basis that the amount of potential coverage was capped and coverage under this excess insurer’s policy was not recoverable. read more
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In Lauren Heyse, et al. v. William Case, et al., AC No. 29289 (Conn. App. Jun. 2, 2009), the Insured, a resident of a common interest community, brought a lawsuit to challenge the rights of another property owner within the common interest community to subdivide a lot within the common interest community. read more
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The Connecticut Appellate Court recently affirmed a lower court’s grant of summary judgment in favor of an insurer based on its determination that the insured breached the insurance policy’s cooperation clause by failing to provide copies of requested tax returns. read more
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An insurer represented by Edwards Angell Palmer & Dodge attorneys John Hughes and Julia Ulrich was recently granted summary judgment by the Connecticut Superior Court in a lawsuit involving a claim for uninsured motorist coverage, and also alleging common law and statutory bad faith against the insurer. read more
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A Connecticut district court recently awarded summary judgment in favor of an insurance company due to the insured’s failure to cooperate in the insurer’s investigation of a claim. read more
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A Connecticut trial court recently awarded judgment, following a bench trial, in favor of an insured who sought coverage from her insurance company for her vehicle after it was stolen and destroyed by fire. read more
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The Connecticut Supreme Court recently reversed a judgment that had been in favor of an automobile insurer in a breach of contract action brought by glass repair companies who had been assigned the rights of the defendant’s insureds. read more
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The United States District Court for the District of Connecticut recently granted in part an insurer’s motion to dismiss on the basis that the insured could not prove a violation of the Connecticut Unfair Insurance/Trade Practices Acts because allegations of multiple unfair practices in dealing with a single insurance claim are not sufficient to constitute a “general business practice.” read more
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On July 8, 2009, Substitute Senate Bill No. 894, An Act Requiring Disclosure of Automobile Liability Insurance Policy Limits Prior to the Filing of a Claim, was signed by Governor Jodi Rell as Public Act 240 (2009). read more
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Last month, the Connecticut Appellate Court ruled that where coverage is excluded under a policy of insurance, a plaintiff may not pursue a bad faith claim against the insured in connection with the insured’s denial of coverage. read more
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On June 26, 2009, Senate Bill 894, An Act Requiring Disclosure of Automobile Liability Insurance Policy Limits Prior to the Filing of a Claim ("SB 894"), was sent to the Connecticut Secretary of State for approval or veto by the Governor. read more
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In a 5-4 decision, the United States Supreme Court in Ricci v. DeStefano offered little in the way of practical guidance to employers walking the fine line of race-neutral hiring and employment practices, but provided no shortage of controversy for pundits and commentators. read more
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The Connecticut Insurance Department (the “Department”) has rescinded Bulletin S-12 regarding de-minimis gifts to insurance clients and prospective clients. Bulletin S-12, issued on December 24, 2008 and which we previously reported on here, had offered guidance to insurance practitioners regarding Connecticut’s anti-rebating law (Conn. Gen. Stat. § 38a-825). read more
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An insurer’s motion to strike an insured’s bad faith count against it was recently denied in Antonacci v. Darwin Select Ins. Co., 2009 WL 1424676 (Conn. Super. April 28, 2009). read more
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An insurer was recently granted summary judgment against its insured based on a commercial general liability insurance policy’s total liquor liability exclusion (“TLLE”). read more
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Late last month, the Connecticut legislature passed S.B. 301 (the “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 medically necessary and prescribed by a licensed physician, licensed psychologist or licensed clinical social worker. read more
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An insurer represented by Edwards Angell Palmer & Dodge attorneys Dennis Brown, Julia Ulrich and John Hughes was recently granted summary judgment by the Connecticut Superior Court based on an insurance policy’s provision defining “uninsured motor vehicle” as not including any vehicle owned by a self-insurer. read more
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On April 20, 2009, Commissioner Sullivan (the “Commissioner”) of the Connecticut Insurance Department (the “Department”) released Bulletin IC–22 (the “Bulletin”), which serves as a reminder to chief executive officers of all insurance companies licensed in the State of Connecticut of their responsibility to not harm the public’s confidence in the insurance industry and to not engage in unfair trade practices. read more
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On February 19, 2009, the Connecticut Committee on Insurance and Real Estate introduced House Bill 6529, An Act Concerning the Licensing and Regulation of Third Party Administrators (the "Bill"). 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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The Connecticut Supreme Court, deciding an issue of first impression in that state, recently held that coverage for bodily injury to others inflicted during an incident of self-defense by an insured constitutes an “occurrence,” and is not excluded by an intentional injury exclusion in a liability policy. read more
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On March 6, 2009, Insurance Commissioner Thomas R. Sullivan issued a press release inviting businesses wishing to form captive insurance companies in Connecticut to do so. read more
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As we have previously reported here, here and here, the use of credit scores by insurers is a controversial topic.
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On February 19, 2009, Connecticut Insurance Commissioner Thomas R. Sullivan testified before the Connecticut Insurance and Real Estate Committee in support of House Bill 6354, titled “An Act Regulating Surety Bail Bond Agents” (the “Act”). The Act would reform the bail bond industry and allow the Connecticut Insurance Department to better regulate the industry through stronger laws. read more
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On February 9, 2009, the Connecticut Legislature held a public hearing regarding on House Bill 6349, An Act Concerning Sales Tax on Services (the "Bill"). The Bill would eliminate the current exemption from the sales tax for professional, insurance, and personal services transactions found in Conn. Gen. Stat. § 12-412(11) and would specifically add professional, insurance, occupational, and personal service transactions to those services that are subject to the state’s sales and use tax under Conn. Gen. Stat. § 12-407(a)(37). read more
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The Connecticut legislature has proposed a new bill, SB-763, An Act Concerning the Connecticut Unfair Insurance Practices Act, which could potentially enable Connecticut consumers to sue insurers for unfair claim practices. Click here for a copy of the proposed bill.
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The Connecticut Insurance Department issued an Order for Default Judgment (the “Order”) and a $5.9 million fine against a marketer of hole-in-one golf contests for engaging in the business of insurance without a license, falsely representing that it is authorized to engage in the business of insurance, and engaging in various unfair insurance practices. read more
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The State of Connecticut Department of Insurance (the “Department”) has recently stated that de minimis gifts not exceeding $15 in aggregate value per year are permissible under Connecticut’s anti-rebating statute, Conn. Gen. Stat. § 38a-825.
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Earlier this month, the Connecticut Superior Court for the Judicial District of Waterbury, Complex Litigation Docket, ruled that where a contractor was sued based on allegations of poor workmanship, the allegations are not covered by the contractor’s general liability policy because they do not constitute an “occurrence.” 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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Connecticut Insurance Commissioner Thomas Sullivan recently endorsed proposed federal legislation to streamline the insurance producer licensing process and establish uniformity in the qualifications that need to be met in order to conduct business in multiple states. According to Sullivan, producer regulation is an area where there is a need for federal legislation. read more
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On June 10, 2008, Connecticut Governor M. Jodi Rell signed into law “An Act Concerning the Confidentiality of Social Security Numbers,” Public Act No. 08-167 (the “Act”). The Act, which becomes effective October 1, 2008, requires any person who collects Social Security numbers in the course of business to create a privacy protection policy. 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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The Connecticut Attorney General, Richard Blumenthal, recently filed separate complaints against The McGraw-Hill Companies, Inc. (as the parent of Standard & Poor’s), Moody’s Corp., and Fitch, Inc. The complaints were filed in the Connecticut Superior Court, Judicial District of Hartford. Each complaint contains a single count for violation of Connecticut’s Unfair Trade Practices Act (CUTPA). 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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Last month, Ohio residents filed a class action complaint against five of the largest baby bottle and “sippy cup” makers: Avent, Dr. Brown’s, Evenflo, Gerber, and Playtex. The lawsuit alleges that the bottle makers were aware of the dangers of Bisphenol-A (commonly referred to as “BPA”) but misrepresented, both intentionally and negligently, their products’ safety. BPA, a component of clear polycarbonate, is commonly used in baby bottles, pacifiers and other baby and adult products. read more
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If you are in-house counsel for a corporation in Connecticut, but are not licensed in Connecticut, please read this! Failure to comply with Connecticut Practice Book section 15A could result in an enforcement action for unauthorized practice of law. read more
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One of Connecticut’s wealthiest families has recently brought an attachment suit against UBS AG, UBS Securities, LLC and UBS Financial Services, Inc. in an effort to require UBS to set aside $150 million to cover a potential reward in an ongoing FINRA arbitration concerning auction rate securities “ARS”). read more
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Connecticut Governor M. Jodi Rell recently vetoed House Bill 5536, An Act Establishing the Connecticut Healthcare Partnership (the "Bill"), which is intended to achieve savings for Connecticut municipalities, nonprofit groups and small employers with 50 employees or less by allowing them to join the current state employees' health insurance program. read more
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On June 2, 2008, Connecticut Governor Jodi Rell signed S.B. 281 into law making Connecticut the latest state to permit the formation of captive insurance companies. S.B. 281 is very similar to the captive insurer statutes of Vermont, currently the largest U.S. domicile for captive insurance companies. read more
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The Connecticut General Assembly’s transportation committee has recently approved Senate Bill 288 (the “Bill”), which prohibits auto insurers from recommending, requesting or requiring policyholders use certain auto repair facilities. The Bill also prohibits insurers from providing economic advantages to policyholders on the basis that they use certain facilities. read more
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On January 7, 2007, Connecticut Commissioner of Insurance, Thomas R. Sullivan, issued Bulletin PC-03 (the "Bulletin"), announcing a one-year pilot program under which certain lines of commercial insurance will be exempt from state rate and form filing requirements. read more
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In Hartford Accident and Indemnity Co, et al. v. Ace American Reinsurance Co., et al., No. 17625 (Sup. Ct. Conn. Dec. 25, 2007), the Connecticut Supreme Court found a “common cause” provision in a reinsurance treaty to be ambiguous for purposes of whether multiple asbestos claims could be aggregated as a single occurrence, reversing the lower court's decision granting summary judgment to the defendant reinsurers. read more
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Thomas R. Sullivan, Insurance Commissioner of Connecticut, recently published notice of intent to adopt a regulation concerning military sales practices to provide uniform standards through which active duty service members of the United States Armed Forces are protected from dishonest and predatory practices in the sale of individual life insurance and annuity products. read more
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In a case arising out of Hurricane Katrina-related damages, the United States District Court for the District of Connecticut ruled that communications between a cedent and reinsurer that were prepared in the ordinary course of business are not protected by the work-product privilege. read more
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On October 9, the Connecticut Attorney General (the “CT AG”) filed a Complaint against Guy Carpenter and Excess Reinsurance Inc. The Complaint is 107 pages long and contains numerous highly-disputed allegations about the structure of the reinsurance markets over the last fifty years as well as hotly contested claims about the activities of the participants in certain reinsurance facilities. read more
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On remand for further proceedings from the Connecticut Supreme Court, the Appellate Court of Connecticut recently agreed with plaintiffs Hartford Accident and Indemnity Company and thirteen of its affiliates’ statutory interpretation of Connecticut General Statutes § 38a-27, holding that the plaintiffs are entitled to prepleading security from defendants Ace American Reinsurance Company and various other foreign reinsurance companies. read more
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In a dispute concerning the appointment of an umpire in a reinsurance arbitration, the federal district court of Connecticut held that it, and not the parties, should appoint the umpire and appointed Robert M. Hall to serve on the arbitration panel. read more
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The Connecticut General Assembly recently enacted legislation (Public Act 07-113), signed into law by Governor M. Jodi Rell on June 12, to prohibit health insurers or HMOs (termed "health care centers" under Connecticut law) from engaging in the practice of "post-claim underwriting." read more
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