In this space approximately six weeks ago (click here), we reported on the failure of over $100 million in auctions concerning auction rate securities and cautioned that, “[r]egardless of the cause, the continued blossoming of the credit crisis should be of significant interest to insurers and reinsurers because failures in other areas of the debt markets could potentially lead to D&O and E&O claims similar to those seen in connection with the subprime mortgage crisis.”
United States
Ohio Reforms Rules for Healthcare Provider Reimbursement Contracts
By Troutman Pepper Locke on
Last week, Ohio Governor Ted Strickland signed into law House Bill 125, dubbed by supporters the Healthcare Simplification Act, which sets restrictions on the contracting rights between physicians and health insurers when negotiating reimbursement arrangements. …
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New Yorkers To Receive Annual Flood Notices
By Troutman Pepper Locke on
Former New York Governor Eliot Spitzer signed legislation this past month that requires annual mailings to New York State homeowners on how to obtain flood insurance coverage with the National Flood Insurance Program (“NFIP”).
New Jersey Prohibits Travel Discrimination in Life Insurance Policies
By Troutman Pepper Locke on
On March 26, 2008, New Jersey Governor, Jon Corzine, signed into law Assembly Bill 1586, sponsored by Assemblyman Neil Cohen. The new legislation prohibits unfair discrimination by life insurance companies against individuals based on their travel plans by expanding the definition of unfair discrimination to include “failing to issue, extend, or renew a life insurance policy, or fixing the rates, terms, or conditions of the policy based on an individual’s intent to travel abroad, unless the decision is based on sound actuarial principles.” …
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Retakaful Market Expanding By Leaps and Bounds
By Troutman Pepper Locke on
The Middle East’s “retakaful” market–reinsurance covering takaful insurance (direct insurance that complies with Islamic law)–continues to expand dramatically. Takaful insurers are required to purchase reinsurance from companies that comply with Islamic law, unless such coverage is unavailable from those companies. …
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Illinois Federal Court: Insured v. Insured Exclusion Precludes Coverage For Action Brought By Receiver
By Troutman Pepper Locke on
An Illinois federal court recently granted an insurer’s motion for judgment on the pleadings based on an insured v. insured exclusion, which the court found was triggered by a claim brought “on behalf of” the insured by the insured’s receiver.
Another Reinsurer to Enter the Growing Middle Eastern Market
By Troutman Pepper Locke on
Arch Capital Group Ltd. (“Arch”) has announced it will enter the emerging reinsurance market in the Middle East. Gulf Re, a new reinsurer backed by Arch and the government-funded entity Gulf Investment Corp., will be based in the Dubai International Financial Centre and begin underwriting in that region upon receiving regulatory approval.
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Read More Another Reinsurer to Enter the Growing Middle Eastern Market
Comparative Bad Faith Defense Not Available in Florida Suit Between Primary and Excess Insurers
By Troutman Pepper Locke on
In what appears to be a matter of first impression in Florida, a federal Magistrate Judge in the Southern District of Florida denied the comparative bad faith and comparative negligence defenses in an excess insurer’s bad faith claim against a primary insurer.
Georgia State Appeals Court: Settlement Negotiations Do Not Toll Policy’s Time Limit on Bringing Suit Where Insurer Explicitly Reserved Its Rights
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
A Georgia state court of appeals recently rejected an insured’s argument that an insurance policy’s time limit for bringing suit should be treated as tolled during the period that the insured and the insurer are engaged in settlement negotiations.
California State Court: Coverage Under an Excess Policy is not Triggered until the Underlying Insurer Either Pays Its Own Limits in “Full” or is “Held Liable” For the Full Amount of Its Limits
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
On March 25, 2008, the California Court of Appeals affirmed a lower court judgment holding that coverage under an excess policy was not triggered because the primary insurer had neither paid the “full amount” of its policy limits nor become legally obligated to pay the full amount of the primary limits pursuant to the parties’ settlement agreement.