On December 24, 2008, the New York State Insurance Department (“NYSID”) released a draft of its proposed amendments (the “Proposal”) to New York’s insurance regulations that authorize admitted insurers to receive credit for reinsurance ceded to unauthorized insurers.
Jurisdictions
FINRA Announces Details of Special Arbitration Procedure for Auction Rate Securities Consequential Damages
By Troutman Pepper Locke on
Each of the regulatory settlements to date with auction rate securities (“ARS”) issuers and brokers has included a provision requiring that the firm consent to a “special arbitration procedure” to deal with investors’ consequential damages relating to the sudden illiquidity of ARS. On December 16, 2008, the Financial Industry Regulatory Authority (“FINRA”) announced the details of this “special arbitration procedure.”
UK: FSA Releases Feedback Statement 08/7 on Transparency, Disclosure and Conflicts of Interest in the Commercial Insurance Market (Statement)
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Statement issued by the FSA sets out its continued interest in improving transparency in the mediation of commercial general insurance and the management of conflicts of interest (click here to see the full statement).
Supreme Judicial Court Holds That Claims Against Limo Service for Allowing Drunken Passenger to Drive Home “Arose Out of” Use of Automobile under Auto Policy
By Troutman Pepper Locke on
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 Supreme Judicial Court Holds That Claims Against Limo Service for Allowing Drunken Passenger to Drive Home “Arose Out of” Use of Automobile under Auto Policy
Ninth Circuit Dismisses Securities Fraud Claim For Failing To Plead Individual Scienter
By Troutman Pepper Locke on
Posted in D&O Liability, United States
The Ninth Circuit Court of Appeals recently dismissed a securities fraud claim for failure to plead individual scienter with sufficient particularity. …
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Florida Office of Insurance Regulation to Issue Final Order on State Farm Rate Request
By Troutman Pepper Locke on
The Florida Office of Insurance Regulation (“OIR”) recently announced that Administrative Law Judge Daniel Manry of the Division of Administrative Hearings issued a Recommended Order on December 12, 2008 denying State Farm’s statewide homeowner’s insurance rate request. …
Read More Florida Office of Insurance Regulation to Issue Final Order on State Farm Rate Request
Massachusetts Federal Court Finds Retroactive Date Bars Coverage Despite Plaintiff’s “Continuing Scheme” Theory
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.
UK: Court of Appeal Considers Effect of Contractual Negotiations Conducted by E-mail
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
Allianz Insurance Company – Eygpt (“Allianz”) v. Aigaion Insurance Company S.A. (“Aigaion”) EWCA Civ 1455 concerned the issue of whether negotiations for marine reinsurance had concluded in a contract. The negotiations were conducted via a broker between offices in different countries. …
Read More UK: Court of Appeal Considers Effect of Contractual Negotiations Conducted by E-mail
Maine Supreme Judicial Court Requires Fraud, Materiality, and Actual Reliance for Rescission of Professional Liability Policy
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
In an action for rescission of a professional liability policy, Maine’s highest court recently held that an insurer must prove both fraud and materiality as well as actual reliance. In that case, Liberty Insurance Underwriters, Inc. v. Estate of Faulkner, Yor-07-180 (Me. Oct. 7, 2008), a attorney allegedly made misrepresentations in his 2003 application for a lawyer’s professional liability insurance policy when he responded “no” when asked if he had “ever been disbarred or been the subject of reprimand, censure, sanction, or other disciplinary action” by the Bar.
NAIC Considers Reserve and Capital Relief Proposal for Life Insurers
By Troutman Pepper Locke on
On November 11, 2008, Frank Keating, President and Chief Executive Officer of the American Council of Life Insurers (“ACLI”), submitted a proposal to the National Association of Insurance Commissioners (“NAIC”) asking the NAIC to consider changing reserve and risk-based capital requirements that it believes are too conservative (the “Proposal”).
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Read More NAIC Considers Reserve and Capital Relief Proposal for Life Insurers