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Parana Banco, a Brazilian bank, recently sought authorization to form the country’s first ever private-sector reinsurer.  Parana Banco indicated that the reinsurer, which will be named J. Malucelli Resseguradora S.A., will have nearly $40 million in capital and initially provide reinsurance cover only for surety bonds issued by J Malucelli Seguradora, the insurance unit of the bank. …
Read More Brazilian Bank Seeks Authorization for Reinsurance License

The proposed rates of 15 auto insurers have been reviewed and approved by the Massachusetts Division of Insurance since the implementation at the beginning of this year of a “managed competition” system for setting auto insurance rates. …
Read More Update: Massachusetts Managed Competition System for Auto Insurance Rates

Under recently-enacted legislation, New York State has switched to a loss cost system for determining workers’ compensation rates.   The New York Compensation Insurance Rating Board (“NYCIRB”) has been tasked with developing loss cost values, and each insurer will submit its own loss cost multiplier to the New York State Insurance Department (the “Department”) for approval. …
Read More New York Adopts Loss Cost System For Setting Workers’ Compensation Rates

As the credit crunch of the subprime meltdown continues, a recent question has been whether a government or private bailout of the troubled bond insurers is on the way.  While early reactions were positive, recent events seem to indicate that a bailout by state and federal regulators or private industry is getting more unlikely by the day. …
Read More Bond Insurers – Bailout on the Way?

The Alabama Senate has voted 33-0 to raise the minimum auto liability insurance requirements for resident motorists.  The current law requires motorists to carry $20,000 in coverage for the injury or death of one person, $40,000 for multiple injuries or deaths, and $10,000 in coverage for property damage. …
Read More Alabama Proposes Increases to Auto Insurance Minimums

Financial Security Assurance Holdings Ltd.’s (“FSA”) bond insurance unit reported in an 8-K filed February 4, 2008, that the U.S. Securities and Exchange Commission (the “SEC”) may bring a complaint against the company as part of an investigation into whether bids were rigged on investment contracts with local governments. 

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Read More Bond Insurer Discloses Receipt of Wells Notice from U.S. Securities and Exchange Commission Related to Antitrust Investigation

On June 1, 2005, after a jury trial lasting over three weeks, a jury found for Blue Cross Blue Shield of Massachusetts (“BCBS-MA”), Blue Cross Blue Shield of Minnesota (“BCBS-MN”), Federated Mutual Insurance Company (“Federated”), and Health Care Service Corporation (“HCSC”) (collectively “Plaintiffs”) against Mylan Laboratories Inc. and Mylan Pharmaceuticals Inc., Cambrex Corporation, and Gyma Laboratories (“Defendants”) on state law claims –  agreement in unreasonable restraint of trade; conspiracy in unreasonable restraint of trade; monopolization; and, attempted monopolization – in the Lorazepam active pharmaceutical ingredient (“API”) market, Lorazepam tablet market and in the Clorazepate API and tablet markets.  The jury awarded BCBS-MA $8,430,887, BCBS-MN $1,756,096, Federated $410,878.00, and HCSC $1,448,437.00 in damages. …
Read More Health Insurers’ Motion to Treble Damages Against Pharmaceutical Companies in Antitrust Case is Granted

In Auto-Owners Ins. Co. v. Pozzi Window Co., No. SC06-779 (Fla. Dec. 20, 2007), the Florida Supreme Court, in response to the U.S. Court of Appeals for the Eleventh Circuit, answered the following certified question in the negative:

DOES A STANDARD FORM [COMMERCIAL] GENERAL LIABILITY POLICY WITH PRODUCT[S] COMPLETED OPERATION HAZARD COVERAGE, SUCH AS THE POLICIES DESCRIBED HERE, ISSUED TO A GENERAL CONTRACTOR, COVER THE GENERAL CONTRACTOR’S LIABILITY TO A THIRD PARTY FOR THE COSTS OF REPAIR OR REPLACEMENT OF DEFECTIVE WORK BY ITS SUBCONTRACTOR?

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Read More Florida Supreme Court Rules that Cost of Repairing or Replacing Subcontractor’s Defective Work Is not “Property Damage” Under CGL Policy