Jurisdictions

Subscribe to Jurisdictions via RSS

As reported in our February 15, 2011, and March 1, 2011, Client Advisories, New York Governor Andrew Cuomo released a bill on February 1, as part of his 2011-2012 budget, proposing to merge the State’s Insurance and Banking Departments. On March 31, 2011, the Governor signed the budget into law, including the final version of the merger legislation, entitled the Financial Services Law (the “FSL”), which, effective October 2011, will consolidate the Insurance and Banking Departments into a new, single agency to be known as the Department of Financial Services (the “DFS”). This Client Advisory describes some of the provisions of the adopted legislation most likely to affect individual entities or the industry as a whole. …
Read More Client Advisory – New York Enacts Legislation to Merge the Insurance and Banking Departments

Thanks to the Supreme Court’s ruling in AT&T Mobility LLC v. Concepcion, businesses now have a mechanism to insulate themselves from costly class actions. In Concepcion, the Court considered whether states can invalidate arbitration agreements that prohibit class arbitration proceedings. …
Read More Client Advisory – Supreme Court Ruling Deals a Blow to Consumer Class Actions

The Massachusetts Attorney General appears to have broken new ground with a recent enforcement action and fine against Briar Group, LLC, a restaurant chain that sustained a security breach exposing credit and debit card data. …
Read More Client Advisory – Massachusetts Attorney General Breaking New Ground in Data Security Enforcement?

In a judgment handed down on 20 April 2011, the High Court dismissed a judicial review application made by the British Bankers Association (BBA) against complaints handling rules relating to the mis-selling of payment protection insurance (PPI).  Please click here to view a copy of the judgment. …
Read More UK: High Court Sides With FSA in Judicial Review Regarding Payment Protection Insurance

The New York Appellate Division for the First Department recently reversed a decision of a lower court that had granted summary judgment to the plaintiff, an excess insurer, on a count of insurance bad faith against a primary insurer. Federal Ins. Co. v. North Amer. Spec. Ins. Co. et al., Docket No. 603926/05 (N.Y.A.D., 1st Dep’t, April 5, 2011). …
Read More New York Appellate Court Reverses Judgment of Insurance Bad Faith and Remands for Additional Fact-finding

A state’s highest court generally gets to have the last word on insurance policy interpretation.  Recently, however, the South Carolina Senate asserted its right to override this judicial prerogative.  Following a decision of the South Carolina Supreme Court regarding the meaning of “occurrence,” the South Carolina Senate approved a bill that would significantly broaden the definition of “occurrence” in the context of liability policies covering construction professionals. …
Read More South Carolina Senate Moves to Override State High Court and Expand Interpretation of “Occurrence” to Include Damage Resulting From Faulty Workmanship

A hydrofracking well exploded near Leroy Township, Pennsylvania on Tuesday, spilling chemically treated water into a nearby creek that feeds the Susquehanna River and prompting the evacuation of certain residents.  The incident occurred while a crew from Chesapeake Energy Corporation was in the midst of “fracking” the well, a method by which one injects a mixture of water, sand and chemicals into dense rock at high pressures in order to release oil and gas.  The cause of the spill was reportedly due to equipment failure. …
Read More Breaking News: Hydrofracking-Related Spill in Pennsylvania

On April 18, 2011, the Superintendent of the New York Insurance Department promulgated the twelfth amendment to Regulation 41 (the “Amendment”).  Pursuant to the Amendment, excess lines insurers obtaining eligibility in New York on or after January 1, 2011 must maintain surplus to policyholders of at least $45,000,000, instead of $15,000,000. …
Read More New York Officially Increases Minimum Surplus Requirement for Excess Lines Insurers

This updates our April 14, 2011 blog posting.

Michigan Governor Rick Snyder has announced that Kevin Clinton has been named as the head of the Office of Financial and Insurance Regulation (“OFIR”).  Gov. Snyder remarked that Mr. Clinton, in addition to his responsibility for consumer protection, will lead the effort to make Michigan a more favorable regulatory environment for the insurance industry by eliminating burdensome regulations. …
Read More Kevin Clinton Named Michigan Insurance Commissioner

The Republic of Iraq moved to compel arbitration of its lawsuit against BNP Paribas pursuant to an arbitration clause in a contract between the United Nations and BNP.  The suit sought to recover damages stemming from BNP’s involvement in the alleged corruption of the United Nations Oil-for-Food program.  BNP cross-moved to enjoin arbitration. …
Read More New York Federal Court Finds That The Republic of Iraq Cannot Arbitrate Claims Related to United Nations “Oil-for-Food” Scandal Based Upon Third-Party Beneficiary Status