Joe Murphy, the Commissioner of Insurance for Massachusetts, was recently interviewed by a local Boston news network affiliate regarding the managed competition for automobile insurance in Massachusetts, which, as discussed in our prior posts here, here and here, was introduced in 2007. According to the Commissioner, Massachusetts policyholders have seen lower rates resulting in nearly half-billion dollars in savings and new discounts such as “accident forgiveness.”
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United States
February’s Record Snowfall in Connecticut has Brought an Avalanche of Out-of-State Claims Adjusters
By Troutman Pepper Locke on
As Connecticut homes are experiencing roof leaks, collapses and frozen pipes caused by this winter season’s unusually large snowfall, the Connecticut Insurance Department (the “CID”) has experienced a sharp uptick in applications for 90-day claims adjuster licenses by out-of-state adjusters. While normally only a small amount of such applications are processed each year, the CID has received over 500 since January 1st. …
Read More February’s Record Snowfall in Connecticut has Brought an Avalanche of Out-of-State Claims Adjusters
New York Court of Appeals: Brokers Have No Common-Law Duty to Disclose Incentives, But Are Required To Do So by New Regulation
By Troutman Pepper Locke on
New York’s highest court recently ruled insurance brokers do not have a common law duty to disclose to their customers the fact that they may have received incentive payments received from insurance companies. The practice of non-disclosure, however, is now prohibited by an Insurance Department regulation, which did not exist at the time of the conduct at issue in the lawsuit. …
Read More New York Court of Appeals: Brokers Have No Common-Law Duty to Disclose Incentives, But Are Required To Do So by New Regulation
Massachusetts Federal Court Finds That Late Notice, Deprivation of the Right to Associate, Precludes Coverage
By Troutman Pepper Locke on
A Massachusetts federal court recently held that a party’s lapse in reporting a multi-million dollar and complex lawsuit deprived an insurer of the right to associate and was prejudicial as a matter of law, precluding coverage. …
Read More Massachusetts Federal Court Finds That Late Notice, Deprivation of the Right to Associate, Precludes Coverage
Ninth Circuit Vacates Arbitration Award Because Arbitrator Failed to Enforce Forum Selection Procedure
By Troutman Pepper Locke on
Polimaster Ltd. and RAE Systems, Inc. were parties to an agreement that required disputes between the parties to be “settled by means of arbitration at the defendant’s si[t]e.” After a dispute arose between the parties, Polimaster commenced arbitration in California (RAE’s principal place of business). RAE answered the arbitration demand, asserting certain affirmative defenses, and also counterclaimed against Polimaster. …
Read More Ninth Circuit Vacates Arbitration Award Because Arbitrator Failed to Enforce Forum Selection Procedure
NAIC Expresses Concern Regarding Decisions Affecting Insurers Made By Financial Stability Oversight Council
By Troutman Pepper Locke on
The National Association of Insurance Commissioners (“NAIC”) recently sent a letter to U.S. Treasury Secretary, Timothy Geithner, declaring that state regulators are being denied an opportunity to weigh in on decisions made by the Financial Stability Oversight Council (the “Council”) created by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) that will likely affect large insurers. …
Read More NAIC Expresses Concern Regarding Decisions Affecting Insurers Made By Financial Stability Oversight Council
U.S. Senate Approves Repeal of 1099 Reporting Requirement
By Troutman Pepper Locke on
On February 17, 2011, the U.S. Senate approved legislation that would repeal the expanded IRS Form 1099 information-reporting requirements imposed by healthcare reform law. Section 9006 of the Patient Protection and Affordable Care Act (“PPACA”) currently requires that certain payments of $600 or more to corporations be disclosed on the IRS Form 1099 starting in 2012. …
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Connecticut Legislation Would Require Public Hearings for Rate Increases
By Troutman Pepper Locke on
Connecticut lawmakers are considering plans to require public hearings when health insurers raise rates. Under the current law, the Connecticut Insurance Commissioner may hold hearings at his discretion. The new law, if adopted, however, will require public hearings in certain cases to give the state Attorney General and consumer advocates the opportunity to be heard and call witnesses. …
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Healthcare News from Capitol Hill and the Department of Health and Human Services – February 22, 2011
By Troutman Pepper Locke on
On February 11, eight Democratic Senators sent a letter to the Department of Justice (DOJ) and the Federal Trade Commission (FTC), asking the two entities to work together on antitrust guidance for the Accountable Care Organizations (ACOs) that will soon be created under the new healthcare law, the Patient Protection and Affordable Care Act (PPACA). …
Read More Healthcare News from Capitol Hill and the Department of Health and Human Services – February 22, 2011
Courts Find That Employment Claims Are Excluded By Contractual Liability Exclusions
By Troutman Pepper Locke on
In two separate cases, federal courts have upheld the carrier’s denial of coverage for claims by an employer alleging that the insured induced a breach of their former employee’s employment contract. …
Read More Courts Find That Employment Claims Are Excluded By Contractual Liability Exclusions