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
United States
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. …
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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.
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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NCOIL Proposes Summit to Discuss Opposition to Proposed Regulatory Reform
By Troutman Pepper Locke on
The National Conference of Insurance Legislators (“NCOIL”) has proposed to hold a strategy summit in early 2009 to plan and organize opposition to any federal involvement in the regulation of insurance. This announcement follows the recent adoption of the Resolution Opposing Continuing Federal Insurance Chartering Efforts by the Council of State Governments (“CSG”) where it was resolved, amongst other things, that state officials continue to monitor, review and regulate the banking, insurance and securities industries as it relates to their individual jurisdictions.
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Ohio District Court Refuses to Bifurcate Bad Faith Counterclaim from Coverage Action and Refuses to Prohibit Disclosure of Pre-Denial Communications with Coverage Counsel
By Troutman Pepper Locke on
An Ohio District Court recently denied an insurer’s motion to bifurcate its insured’s bad faith counterclaim from its declaratory judgment coverage action and to stay related bad faith discovery.
SEC Votes to Regulate Indexed Annuities
By Troutman Pepper Locke on
On December 17, 2008, the U.S. Securities and Exchange Commission (the “SEC”) voted 4 – 1 in favor of classifying equity-indexed annuities as securities, subjecting them to federal regulation. As discussed in our earlier posts here and here, the new rule, which takes effect January 12, 2011, seeks to clarify the status of indexed annuities under the federal securities laws.
Massachusetts Law Aims to Protect Military Members from Predatory Insurance Practices
By Troutman Pepper Locke on
On December 17, 2008, Massachusetts Governor Deval Patrick signed House Bill No. 4508, An Act Protecting Military Services Members (the “Act), into law. The purpose of the Act is to protect members of the armed forces from dishonest and predatory insurance practices by declaring certain acts or practices to be false, misleading, deceptive or unfair. …
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