The Delaware Superior Court recently held that a fraud exclusion in a D&O policy did not bar coverage arising out of a stockholder litigation because the settlement of litigation did not constitute an adjudication of fraud as required to trigger the fraud exclusion.
United States
California Court of Appeals Affirms Decision for State Farm in Misrepresentation Suit
By Troutman Pepper Locke on
The California Court of Appeals recently affirmed a decision granting State Farm’s special motion to strike a claim in a case involving alleged misrepresentations during a personal injury case. Click here to view the unpublished decision.
Appellants were tenants in a home belonging to Jeane and Edward Dunne (the
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Arbitration Fairness Act of 2007 Approved by House Subcommittee
By Troutman Pepper Locke on
On July 15, 2008, the Arbitration Fairness Act of 2007, H.R. 3010 (the “Act”), which was originally introduced on July 12, 2007, was approved by the House of Representatives Subcommittee on Commercial and Administrative Law.
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Bad Faith – Florida District Court Grants Summary Judgment in Favor of Insurer
Maldonado v. First Liberty Ins. Corp., 546 F. Supp. 2d 1347 (S.D. Fla. 2008), arose from an auto accident in which the insured’s wife collided with the father of three small children, causing his death As soon as it became aware of the accident, the insurer notified the insured that “the nature and extent of the damages and injuries being claimed suggests there is a potential exposure in excess of your policy limits. . . .”
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Governor Charlie Crist and Florida Insurance Commissioner Kevin McCarty meet with Lloyd’s of London
By Troutman Pepper Locke on
Governor Charlie Crist, Florida Insurance Commissioner Kevin McCarty, and Florida House Speaker Designate Ray Sansom were in London on July 15th to discuss state insurance issues. Representing Governor Crist’s Team Florida Trade and Business Development Mission, the delegation met with Lord Levene, Lloyd’s of London chairman. Crist and his team were expected to discuss the role of global reinsurance and the threat of global warming.
NCOIL Adopts a Resolution in Support of State-Based Regulation of the Use of Credit Scores in Personal Insurance Rating
By Troutman Pepper Locke on
Posted in Regulatory, United States
Following on the heels of the National Conference of Insurance Legislators (“NCOIL”) Secretary George Keiser’s testimony in support of the use of credit-based insurance scoring to the United States House of Representatives Subcommittee on Oversight & Investigations, NCOIL adopted a Resolution Supporting State Regulation of the Use of Credit Information in Personal Insurance (the “Resolution”) on July 13, 2008.
BREAKING NEWS: New York Governor Patterson Signs Law Reversing New York’s “No-Prejudice” Precedent, Requiring That an Insurer Has Sustained “Material Prejudice” Before Disclaiming Coverage on Late Notice Grounds
On July 23, 2008, New York Governor David Paterson signed into law what has been referred to as the “late notice bill” (Senate Bill 8610 and Assembly Bill 11541). The new law states that it takes effect 180 days after the date it is signed into law, and applies to policies issued after that 180-day period. Accordingly, the new law takes effect on January 19, 2009.
The End of Countersignature Laws in the United States
By Troutman Pepper Locke on
The state of Nevada’s failure to challenge a recent decision by a federal appellate court deeming that state’s “countersignature laws” unconstitutional officially marks the end of countersignature requirements for brokers placing business in the United States. …
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Court of Appeals Denies Cedent’s Motion to Appeal Ruling That Reinsurer Not Obligated to Follow Settlement Allocation
By Troutman Pepper Locke on
About a year ago, www.insurereinsure.com reported on the New York Appellate Division’s ruling in Allstate Ins. Co. v. American Home Assurance Co., No. 9335 (App. Div., 1st Dept. June 12, 2007), which reversed a lower court’s decision and held that Allstate was not required to follow the fortunes of American Home’s loss allocation on a single occurrence “per site” basis, finding that American Home manipulated its allocation to exceed the facultative reinsurance contract’s $1 million per-occurrence deductible in order to maximize its reinsurance recoveries.
New England Patriots Face Auction Rate Securities Crunch
According to a recent report in the Boston Globe, an affiliate of the New England Patriots has filed suit against its bond insurer, AMBAC, in an attempt to avoid $2.8 million in accelerated premium payments linked to the troubled auction rate securities (“ARS”) market.
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