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On January 10, 2008, the Illinois Division of Insurance (“DOI”) issued a consumer alert advising caution with respect to “Stranger/ Investor Originated Life Insurance” (“STOLI”) arrangements. …
Read More Illinois Issues a Consumer Alert Regarding Stranger/ Investor Originated Life Insurance

With potential implications for anyone doing business with a Massachusetts resident, the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) held a public hearing today concerning the proposed regulation 201 Mass. Code Regs. 17.00, the new Standards for the Protection of Personal Information of Residents of the Commonwealth. 

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Read More Aggressive New Proposed Regulation for the Security of Personal Information

On January 9, 2008, U.S. District Judge Charles Breyer denied ex-Brocade CEO Greg Reyes’ motion for a hearing or a new trial based on the allegedly false testimony of a witness at trial.  As previously reported (see here), Reyes was convicted of securities fraud on August 7, 2007 for failing to properly account for backdated stock options. 

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Read More Brocade Stock Options Backdating Criminal Trial: Reyes’ Motion For New Trial Denied

On January 3, 2008, the U.S. District Court for the Northern District of Illinois ordered Waste Management Inc.’s former CFO to pay more than $4 million to the Securities and Exchange Commission (“SEC”) in civil penalties and disgorgement. 

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Read More Ex-Waste Management CFO Ordered to Pay $4 Million in Connection with Accounting Fraud

While there have been several pre-trial rulings from Louisiana federal courts on Katrina-related insurance coverage issues, the first such trial in Louisiana federal court took place recently.  On November 7, 2007, a jury in the Eastern District of Louisiana awarded $365,000 to Michael and Judy Kodrin from their homeowners’ insurer, State Farm Fire Insurance Company. 

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Read More Louisiana Federal Court Orders State Farm to Pay Its Insureds’ Legal Fees in Bad Faith Katrina-Related Coverage Litigation

The Ohio state Court of Appeals recently determined that where portions of insurance policies at the center of a dispute were missing, the lower court’s consideration of extrinsic evidence in determining the meaning behind ambiguous policy wording was proper. 

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Read More Ohio Court of Appeals: Consideration of Extrinsic Evidence is Proper in Determining Meaning of Policy Wording As to Aggregate Limits Where Portions of the Policy at Issue are Missing

Rhode Island’s recently enacted R.I.G.L. § 27-34.2-21 provides for new producer training requirements for all Rhode Island-licensed producers who sell, solicit or negotiate long-term care insurance.  Licensed producers who have been selling, soliciting or negotiating long-term care insurance on or before July 3, 2007, must participate in a one-time training course by July 3, 2008. 

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Read More Rhode Island Enacts New Producer Training Requirements

In an opinion released yesterday, the Massachusetts Supreme Judicial Court affirmed the state insurance commissioner’s approval of proposed increases in property and casualty insurance rates.  Ruling against the state Attorney General, the Court upheld the discretionary power of the Massachusetts Commissioner of Insurance to approve rate increases that exceed statutory maximums based on consideration of predicted hurricane loss effects and the cost of catastrophic risk reinsurance. 

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Read More Breaking News: Massachusetts High Court Affirms Insurance Commissioner’s Property And Casualty Insurance Rate Increase Approval

Congress recently approved a Bill (S. 2499) that empowers federal regulators at the Department of Health and Human Services to ensure that employer health plans pay the medical bills of older employees even after these employees become eligible for Medicare. …
Read More Employer Health Plans To Pick Up The Tab For Older Employees