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According to industry reports, the U.S. Treasury Department is willing to inject up to $22 billion into the life insurance industry and has given preliminary approval to six life insurers to participate in the Troubled Asset Relief Program (“TARP”).  TARP is only available to life insurers with federally chartered banks, or savings-and-loan institutions. 

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Read More Treasury Opens TARP Funds to Certain Life Insurers

Utopia Studios, Ltd., a New York corporation, retained Earth Tech, Inc., a California corporation with offices worldwide, to provide engineering and consulting services in connection with the development of a property.  The parties’ relationship was governed by a Master Services Consulting Agreement (“MSA”) that included, among other terms, a broad arbitration provision. 

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Read More New York Federal Court Compels Party to Arbitrate, Despite the Fact that Party Claimed to be a Nonsignatory to the Relevant Arbitration Agreement

Late last month, the National Association of Insurance Commissioners (the “NAIC”) held a public hearing regarding the use of credit-based insurance scores by insurers.  The hearing served as a fact-finding session where opposing viewpoints were heard and discussed.  The topics covered included:  (1) what constitutes a credit-based insurance score; (2) an explanation of how insurers use credit-based insurance scores; and (3) how the current economic conditions are affecting policyholder premiums related to credit-based insurance scores. 

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Read More The National Association of Insurance Commissioners Holds Hearing Regarding Use of Credit-Based Insurance Scoring

On Thursday, May 14, 2009, the House Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises (the “Subcommittee”) held a hearing titled, “How Should the Federal Government Oversee Insurance?” 

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Read More Hearing on Capitol Hill Asks Not Whether There Should be Federal Oversight of Insurance, but Rather How the Federal Government Should Oversee Insurance

Last month, the Obama Administration stated its position on the reauthorization of the National Flood Insurance Program (“NFIP”).  In a letter from Department of Homeland Security Secretary Janet Napolitano to Representative Barney Frank, chairman of the House Committee on Financial Services, the Obama Administration announced that it “supports meaningful reforms to the NFIP and reauthorization of the NFIP through Fiscal Year 2014.” 

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Read More Obama Administration Announces Position on the National Flood Insurance Program

On May 7, 2009, a jury in the Northern District of Illinois reached a mixed verdict finding in plaintiffs’ favor on several counts in the Household International securities fraud class action.  The trial will now move on to the damages phase.  Prior to this verdict, only six other securities class actions that involve conduct after the passage of the PSLRA in 1995, have been tried to a verdict. …
Read More Plaintiffs Prevail in Rare Securities Class Action Verdict

In early May 2009, Florida’s Chief Financial Officer, Alex Sink, asked the Florida Legislature to ensure that Florida’s Inland Protection Trust Fund (IPTF) is adequately funded. The IPTF finances environmental clean-up on sites contaminated by leaking petroleum storage tanks.  Sink warned that failing to fund the IPTF could waste progress in remediating contamination that has been made. 

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Read More Florida Environmental Claims – Florida Chief Financial Officer Alex Sink calls for funding of Inland Protection Trust Fund

The Senate Subcommittee on Consumer Protection, Product Safety and Insurance (the “Subcommittee”) will hold the first Congressional hearings on Chinese Drywall on May 21st at 10:30 a.m.  The Subcommittee intends to investigate the alleged health and product safety issues associated with Chinese Drywall. …
Read More Chinese Drywall Capitol Hill Update – Senate Subcommittee Will Conduct Hearings and House Orders Study of Available Property Insurance