Last month, Dianne Cornwall, Director of the Nevada Department of Business & Industry, announced that Scott Kipper would be appointed the new commissioner of the Nevada Division of Insurance. Effective December 29, 2008, he replaced acting commissioner Betty Baker who has held the position since Alice Molasky-Arman’s retirement on September 7, 2008.
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Florida Court Finds Coverage for Faulty Subcontractor Work Under CGL Policy
By Troutman Pepper Locke on
EAPD’s Donna Greenspan of the firm’s West Palm Beach office recently authored an article titled “Florida Court Finds Coverage for Faulty Subcontractor Work Under CGL Policy,” published in National Underwriter Property & Casualty. …
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Florida District Court Finds Insurer Entitled To Rescind Policy Due To Insured’s Misrepresentations on Application and Grants Summary Judgment Despite Claim That Insurer Knew of Misrepresentations and Failed to Exercise Due Diligence
By Troutman Pepper Locke on
A Florida district court recently granted summary judgment in favor of an insurer, allowing it to rescind a general liability policy because the insured knowingly made misrepresentations on the insurance application. …
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The State of Connecticut Insurance Department Issues Guidance on Connecticut’s Anti-Rebating Statute
By Troutman Pepper Locke on
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.
New York Federal Court Finds that Arbitrator’s Resignation Due to Illness Means that Arbitration Must Start Over From the Beginning
By Troutman Pepper Locke on
Insurance Company of North America and INA Reinsurance Company (“INA”) reinsured Public Service Mutual Insurance Company (“PSMIC”) pursuant to a series of excess of loss reinsurance contracts, effective from 1971 to 1986 (the “Reinsurance Contracts”). In 2005, PSMIC settled a claim against its insured, Deleet Merchandising Corporation, at a site in Newark, New Jersey (the “Deleet claim”) and allocated the loss pro-rata over fifteen insurance policies PSMIC had issued to Deleet between 1971 and 1986. PSMIC then billed its reinsurers, including INA, for the Deleet claim based upon this allocation.
Fifth Circuit Court of Appeals: Insured Can Recover Damages for Mental Anguish under Louisiana Bad Faith Statute Where Insurer Acted in Bad Faith by Delaying Payments
By Troutman Pepper Locke on
The Fifth Circuit Court of Appeals recently ruled that a Louisiana insured, who suffered Hurricane Katrina-related damages, can recover damages for mental anguish when its insurer acts in bad faith.
Massachusetts High Court Rules That Exclusion With “Arising Out Of” Language Extends To Conduct By Third Parties
By Troutman Pepper Locke on
The Massachusetts Supreme Judicial Court recently held that an intellectual property exclusion barring coverage for claims “arising out of” the misappropriation of trade secrets extended to the misappropriation of trade secrets by a third party.
Eleventh Circuit Finds Pozzi Insurer Waived Its Defective Component Defense By Not Raising Issue On Appeal
By Troutman Pepper Locke on
In Pozzi Window Co. v. Auto-Owners Ins. Co., No. 05-10559 (11th Cir. Sept. 26, 2008), the U.S. Court of Appeals for the Eleventh Circuit affirmed the judgment against an insurer, finding that the general contractor’s commercial general liability (“CGL”) policy covered damages from water leakage around windows that a subcontractor had installed in a multimillion dollar home. …
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Eleventh Circuit Finds Release Of Insured Bars Excess Insurer’s Bad Faith Action Against Lower-Level Insurer
By Troutman Pepper Locke on
In Federal Ins. Co. v. National Union Ins. Co. of Pittsburg, P.A., No. 07-12274 (11th Cir. Oct. 30, 2008), the U.S. Court of Appeals for the Eleventh Circuit held that an excess liability insurer could not maintain a bad faith action against a lower-level insurer that had settled the underlying tort claim and caused the injured parties to release the insured and all its insurers.
NAIC to Hold Public Hearing on Reserve and Capital Relief Proposal
By Troutman Pepper Locke on
As we previously reported here, the American Council of Life Insurers (“ACLI”) submitted a letter 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. On January 2, 2009, the NAIC issued a press release to announce that its Capital and Surplus Relief Working Group will hold a public hearing on January 27, 2009 at the Marriott Wardman Park Hotel in Washington D.C. to gather additional comments and information regarding current reserves and capital requirements.
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