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In the wake of a lawsuit by the Massachusetts Securities Division alleging fraudulent sales of auction rate securities (“ARS”), UBS AG reportedly plans to buy back as much as $3.5 billion in ARS-impacted preferred shares issued by tax-exempt closed-end funds. 

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Read More UBS Agrees To Buy Back Up To $3.5 Billion Of Auction Rate Preferred Shares

In a recent decision from the United States District Court for the Eastern District of Washington, Olsen v. United States, No. CV-06-5020-FVS (E.D. Wash. Mar. 10, 2008), the court vacated several arbitration awards on the grounds that the reinsurer was not bound by the arbitration agreement in contracts between the ceding company and its insureds, and the arbitrators did not have jurisdiction to preside over the disputes between the parties. …
Read More Court Vacates Arbitration Awards Because Arbitrators Improperly Assumed Jurisdiction

Over the last few months, www.insurereinsure.com has reported on the U.S. Supreme Court’s landmark decision in Hall Street Associates v. Mattel, Inc., 128 S.Ct. 1396 (2008) (click here to view previous post), which held that parties could not contract to expand the grounds for vacatur or modification of arbitration awards under the Federal Arbitration Act (“FAA”), and the potential impact its holding might have on the doctrine of manifest disregard of the law (click here to view previous post). …
Read More Post Hall Street, Federal Courts Differ On the Application of Manifest Disregard of the Law

The House Subcommittee on Capital markets, Insurance and Government Sponsored Enterprises (the “Subcommittee”) and the House Committee on Financial Services (the “Full Committee”) approved three insurance regulatory bills on July 9, 2008.  This post provides updates on the three bills that have most recently advanced Congress’ examination of proposals to institute federal oversight of the insurance industry. 

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Read More UPDATE: House Committees Approve Three Federal Insurance Regulation Bills

In a recent decision of the United States Bankruptcy Court for the District of Delaware, In re Federal Mogul Global, Inc., No. 01-10578 (JKF) (Bankr. D. Del., Mar. 19,  2008) (click here to read the decision), the court ruled that the assignment of rights in certain insurance policies to an asbestos trust was valid and enforceable under the Bankruptcy Code, and anti-assignment provisions in the policies and applicable state law were preempted. …
Read More Bankruptcy Court Rules That Federal Mogul Insurance Policies May Be Assigned to Asbestos Liability Trust

Recently, the House Financial Services Oversight and Investigation Subcommittee held a hearing where speakers from various insurance industry and consumer protection groups gave testimony regarding “The Impact of Credit-Based Insurance Scoring on the Availability and Affordability of Insurance.” 

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Read More Use of Credit Scores in Personal Line Insurance Rating

On November 7, 2007, former Louisiana Attorney General Charles C. Foti, Jr. filed a lawsuit in the Civil District for the Parish of Orleans alleging that under Louisiana’s antitrust laws certain insurers and insurance industry participants fixed prices, manipulated damage estimates and low-balled claims payments after hurricanes Katrina and Rita. 

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Read More Antitrust Lawsuit Filed By Louisiana Against Insurers and Insurance Industry Participants Stays In Federal Court

On July 14th, industry representatives presented their viewpoints on the need to reform the current New York regulations regarding producer compensation standards and disclosure to a panel consisting of officials from the New York Insurance Department and the Office of the Attorney General. 

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Read More The New York Insurance Department and New York Attorney General Held the First of Three Joint-Hearings Regarding Insurance Producer Compensation

The Supreme Court of Connecticut recently affirmed a 2006 Superior Court decision that a liability insurer for a subcontractor was required to provide a defense for the general contractor in connection with a lawsuit alleging workplace injuries to employees of the subcontractor allegedly injured on the job. …
Read More Connecticut Supreme Court Upholds Decision Requiring Insurer for Subcontractor to Defend Contractor

The federal district court for the Eastern District of Pennsylvania recently denied an insurer’s request to bifurcate its insured’s bad faith claim from the breach of duty to defend claim for purposes of discovery and trial. …
Read More Federal Court Denied Insurer’s Request to Bifurcate Insured’s Bad Faith Claim from Breach of Contract Claims