In a recent decision from the United States District Court for the Western District of Washington at Seattle, Heights at Issaquah Ridge Owners Association v. Steadfast Ins. Co., Case No. C07-1045RSM (W.D.Wa. Dec. 13, 2007), the court denied the plaintiff’s motion to compel an insurer to produce loss reserve information because the plaintiff did not assert how such information would be relevant to its bad faith claim.
United States
New York Court Finds That a Factual Issue Exists as to Whether a Cedent’s Allocation was in Bad Faith and Constitutes an Ex Gratia Payment
By Troutman Pepper Locke on
The New York Appellate Division, First Department, recently denied a reinsurer’s motion for summary judgment, finding that an issue of fact existed as to whether a cedent’s allocation of an underlying claim to a reinsured policy was made in bad faith and constituted an ex gratia payment.
Supreme Court’s Decision in LaRue v. DeWolff, Boberg & Associates, Inc. Could Lead to an Increase in Individual Account Holder 401(k) Litigation
In a 9 – 0 decision, the U.S. Supreme Court decided on Wednesday of this week that individual participants in 401(k) retirement plans can sue plan fiduciaries to recover losses that result from mishandling of their individual retirement accounts. Until the decision in LaRue v. DeWolff, Boberg & Associates, Inc., No. 06-856, (Feb. 20, 2008) courts and commentators disagreed over whether an individual account holder could bring an ERISA action against plan fiduciaries or whether only the plan itself had standing to bring those lawsuits.
D.C. Federal Court Names Lead Counsel in Standard & Poor’s CMO Securities Class Action
By Troutman Pepper Locke on
On February 11, 2008, Judge Colleen Kotelly of the United States District Court for the District of Columbia appointed the Lerach, Stoia, Geller, Rudman & Robbins law firm as lead plaintiffs’ counsel in a securities class action arising out of Standard & Poor’s allegedly fraudulent rating of certain bonds collateralized by subprime mortgages.
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New York Governor Spitzer Proposes Additional $15 Fee On All Auto Policies
By Troutman Pepper Locke on
As part of raising the proposed $1 billion Upstate Revitalization Fund in New York Governor Eliot Spitzer’s Executive Budget, Spitzer has requested that surcharges on all automobile policies issued in New York be raised by $15; the current surcharge is $5.
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Michigan Senate Passes Captive Bill
By Troutman Pepper Locke on
Posted in Regulatory, United States
On February 12, 2008, the Michigan Senate voted 36-0 to amend the state’s Insurance Code to provide for the creation of captive insurance companies. If passed by the Michigan House of Representatives and signed by the governor, the new legislation, S.B. 1061, would provide for the formation of captive insurance companies (“Captives”), special purpose financial captives (“SPFCs”) and protected cell insurance companies.
Reinsurance Arbitration Predominates
By Troutman Pepper Locke on
From time to time, we are asked about the prevalence of arbitration over litigation as a forum for resolving reinsurance disputes. Vince Vitkowsky recently conducted a survey of the attorneys at Edwards Angell Palmer & Dodge, LLP, in both the US and England, as to to their experience.
Florida Office of Insurance Regulation Files Formal Complaint to Suspend Allstate Companies’ Licenses
By Troutman Pepper Locke on
Florida Insurance Commissioner Kevin McCarty (McCarty) announced this week that the Office of Insurance Regulation (OIR) has filed an administrative complaint seeking to suspend the certificates of authority of numerous Allstate Companies to write new insurance policies in Florida.
Oversight and Investigations Subcommittee Holds Florida Field Hearing on Homeowners Insurance in Disaster Prone Areas
By Troutman Pepper Locke on
The House of Representatives’ Subcommittee on Oversight and Investigations held a field hearing in West Palm Beach, Florida regarding the “crisis related to availability and affordability of homeowners’ insurance in Florida and other disaster-prone areas.” …
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Broker Agrees To Reimburse Massachusetts City for $14 Million in Subprime Losses
Merrill Lynch recently agreed to “make whole” the city of Springfield, Massachusetts by paying nearly $14 million in connection with subprime losses the city suffered in cash accounts held with the brokerage firm.
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