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Executive Life Insurance Company of New York (ELNY) was placed into rehabilitation in 1991 after affiliated companies became insolvent and concerns about its future solvency arose.  The rehabilitation plan adopted in 1992 involved the transfer of much of ELNY’s business to another carrier; however, ELNY in rehabilitation retained substantial assets and continued payment on certain annuities, with the bulk of the payout going to structured settlement annuitants that had received long-term and/or lifetime annuities as settlements in personal injury lawsuits. 

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Read More Spitzer, NYLB Announce Proposed Resolution of Projected Shortfall in Executive Life Insurance Company of New York Rehabilitation

On Tuesday, December 4, the U.S. Supreme Court heard oral arguments in Riegel v. Medtronic, Inc.  The case is an appeal of the Second Circuit’s decision finding that the Food and Drug Administration’s extensive pre-market approval process for Class III medical devices pre-empts state law causes of action for injuries allegedly caused by those devices.  The Circuit Courts are currently split on the question. 

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Read More Update: Supreme Court Hears Arguments in FDA Preemption Case

With Congress scrambling to pass legislation extending the Federal Terrorism Risk Insurance Program before its expiration at the end of the month, New York lawmakers requested yesterday that any final extension act include a “reset” provision.  Such a provision would lower the trigger levels for federal reimbursements under the TRIA program in areas already hit by a terrorist attack. …
Read More New York Lawmakers Request Inclusion of “Reset” Provision in any TRIA Extension

An Illinois judge recently struck down the two-year-old state law that capped medical malpractice awards, ruling that the law violates the Illinois constitution’s “separation of powers” clause by depriving judges and juries of their right to determine fair compensation. …
Read More Illinois Medical Malpractice Cap Ruled Unconstitutional

On a question certified by the Fifth Circuit Court of Appeals, the Texas Supreme Court recently ruled that “[t]here is no direct duty of reimbursement between co-primary insurers.” …
Read More Texas Supreme Court: Pro Rata “Other Insurance” Clauses Preclude Equal Contribution Among Co-Primary Insurers

The California Court of Appeals recently upheld a trial court judgment rendering a policy void ab initio and awarding the insurer reimbursement of amounts it incurred in defending and settling the underlying litigation. …
Read More California Court of Appeals: Insurer Did Not Waive Right To Rescind Policy By Providing A Defense And Partial Settlement

U.S. Representatives Doris Matsui (CA – D.) and Mario Diaz-Balart (FL – R.) have cosponsored and recently introduced a bill to the House of Representatives, entitled The Safe Building Codes Act of 2007.  If enacted, the Bill would allow for approved states to each receive an additional 4% of federal disaster relief funds. …
Read More House Considers Bill Aimed to Strengthen State Building Codes

After a lengthy legal battle between New York’s Comptroller and the Superintendent of Insurance, New York’s highest court has held that the Comptroller may not exercise its audit powers over the New York Liquidation Bureau (NYLB) and may not audit funds/assets under the NYLB’s control. …
Read More New York Decision on NYLB Prohibits Comptroller Audit, Expounds on Private Role of Liquidator