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In a much anticipated decision, the U.S. Supreme Court recently held that the Federal Arbitration Act’s (“FAA”) statutory grounds for vacating and modifying arbitration awards are “exclusive,” and thus cannot be expanded, even if expressly agreed upon by the arbitrating parties. 

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Read More U.S. Supreme Court Rejects Expanded Judicial Review of Arbitration Awards

On March 17, 2008, in a case pending in the United States District Court for The Central District of California, California Joint Power Insurance Authority  v. Munich Reinsurance America, Inc., Case No. CV08-00956, Munich Reinsurance America, Inc. (“Munich Re America”) filed a motion to dismiss the count of the complaint filed by plaintiff California Joint Power Insurance Authority (“CJIPA”) seeking tort and punitive damages for an alleged breach of the implied covenant of good faith and fair dealing under the reinsurance agreement entered into between the parties. 

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Read More Reinsurer Argues that California Law Prohibits Tort Recovery for Bad Faith in the Reinsurance Context

Consistent with the strong federal policy favoring the enforcement of arbitration agreements, the United States Supreme Court recently held that when parties agree to arbitrate all questions arising under a contract, the Federal Arbitration Act (“FAA”) supersedes state laws lodging primary jurisdiction in another forum. 

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Read More Arbitration Prevails: U.S. Supreme Court Holds that Federal Arbitration Act Supersedes State Law Vesting Another Forum with Jurisdiction Over a Dispute

The New York Senate Finance Committee (the “Committee”) has rejected several proposals in Former Governor Eliot Spitzer’s 2008-2009 Executive Transportation, Economic Development and Environmental Conservation Budget, which would have increased various civil penalties placed on insurance agents and brokers for violations of Insurance Law and related regulations. 

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Read More New York Committee Rejects Proposed Increases in Insurance Fines

Following the recent trend set by states such as California, Florida and New Jersey, the National Association of Insurance Commissioners (“NAIC”) has adopted a revised version of the Unfair Trade Practices Model Act (the “Act”) that limits the circumstances in which a life insurer can deny coverage to an individual based on the individual’s lawful past and future travel. 

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Read More NAIC Follows States Lead To Prohibit Travel Discrimination In Life Insurance Policies

On March 31, 2008, Treasury Secretary Henry M. Paulson, Jr. released the Department of the Treasury Blueprint for a Modernized Financial Regulatory Structure (the “Blueprint”) in a speech given at the Treasury Department.  The Blueprint is a series of recommendations for regulatory reform for U.S. financial services industries intended to broaden consumer protections, increase efficiencies, and provide market stability through stream-lined regulatory oversight.  A high-level view of the Blueprint was originally introduced on June 27, 2007. 

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Read More Treasury Secretary Proposes Sweeping Changes to Federal Oversight that Affects the Insurance Industry

An Ohio federal court recently denied an insurer’s motion to dismiss a bad faith claim brought by its insured on the basis that, accepting the insured’s allegations as true for the purposes of a motion to dismiss, the insurer could not show that the insured had failed to state a claim for bad faith. …
Read More Ohio Federal Court Denies D&O Insurer’s Motion to Dismiss Bad Faith Claim

Earlier this year, the United States District Court for the District of Massachusetts granted an insurer summary judgment, ruling that claims brought by shareholders of First New England Dental Centers (“FNEDC”) against an officer of FNEDC were excluded under the policy’s so-called Insured versus Insured exclusion. 

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Read More Federal Court Rules that Insured v. Insured Exclusion Applies to Claims By Shareholders in Imprimis Action

A Massachusetts Superior Court recently ruled that embattled lender Fremont Investment & Loan (“Fremont”) must obtain written consent from the Massachusetts Attorney General’s office before foreclosing on loans in the state. 

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Read More Fremont Must Get Attorney General’s Permission Before Foreclosing Loans In Massachusetts