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The Florida Senate Banking & Insurance Committee passed legislation last month that would reduce the state-funded reinsurance, which insurers are permitted to purchase in addition to the Florida Hurricane Catastrophe Fund coverage (Cat Fund). The measure, backed by Florida’s Chief Financial Officer Alex Sink, is designed to shed some of the state’s hurricane risk. 

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Read More Florida Senate Passes Bill to Reduce Insurers’ Catastrophe Coverage Limits

A federal district court judge in Florida recently ruled that an insurer cannot retroactively rescind a liability policy insuring underground storage tanks (“USTs”) for an alleged material misrepresentation in the policy application.  Rather, the only remedy for such a misrepresentation is the denial of coverage for future claims. …
Read More Federal Judge in Florida Rules Underground Storage Tank Policy Cannot Be Rescinded

The United States District Court for the Eastern District of California recently held that an insurer breached its duty to defend where the undisputed facts demonstrated that there was a “potential” for coverage under the policy. 

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Read More California District Court Rules That “Duty to Defend” Exists When There Is a “Potential” for Coverage

A Florida federal court recently found that, despite a mold exclusion and anti-concurrent-cause provision in the relevant commercial general liability policy, an insured was entitled to defense and indemnity for claims relating to mold infestation. 

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Read More Florida Federal Court Finds Duty to Defend and Indemnify Mold-Related Claims Despite Policy’s Mold Exclusion and Anti-Concurrent-Cause Provision

The New Hampshire Supreme Court will hear oral argument on April 30, 2008, in In the matter of the Liquidation of The Home Ins. Co., No. 2007-0794, N.H.), to consider whether the Superior Court erred in ruling that the a setoff claimed by Century Indemnity Company (“CIC”) lacked the mutuality necessary to trigger setoff under the New Hampshire Insurers Rehabilitation and Liquidation Act (the “Liquidation Act”). 

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Read More New Hampshire Supreme Court Considers Offset Issue in the Home Insurance Company Liquidation

This post serves as an update to our postings on June 7, September 12, October 9, October 19 and December 11, 2007.  The NAIC Reinsurance (E) Task Force (“Task Force”) met during the Spring NAIC meeting last month to discuss a memorandum from the NAIC Staff dated March 19, 2008. 

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Read More NAIC to Complete Reinsurance Regulatory Framework by the end of 2008

A federal district court in Virginia recently ruled that under Virginia law, an insured may not recover punitive damages in connection with a bad faith claim against its insurer.  TIG Insurance Co. v. Alfa Laval, Inc., Civil Action No. 3:07CV683 (E.D.Va., March 5, 2008).  The court explained that under Virginia law, a bad faith action against an insurer is a contract action, not an independent, willful tort for which punitive damages might be appropriate. …
Read More Virginia Federal Court Rules that Punitive Damages Are Unavailable in Insurance Bad Faith Case