Linda A. Watters resigned from her post as Commissioner of the Michigan Office of Financial and Insurance Services (the “OFIS”) on October 15, 2007, effective October 31. Watters, who was named Commissioner of OFIS on April 11, 2003, will join the financial risk management practice of KPMG LLP in Chicago.
United States
California Insurance Commissioner Issues Emergency Declaration in Response to California Wildfires
By Troutman Pepper Locke on
Posted in Regulatory, United States
On October 24, 2007, California Insurance Commissioner Steve Poizner issued an emergency declaration in anticipation of claims resulting from the Southern California fire storms.
Hurricane Katrina Whistleblower Lawsuit Dismissed
By Troutman Pepper Locke on
Posted in Catastrophe Claims, United States
On October 17, 2007, a federal court judge sitting in the Eastern District of Louisiana dismissed a Katrina-related whistleblower lawsuit (United States of America, ex rel. Branch Consultants, Inc. v. Allstate Insurance Company, et al., Case No. 06-4091 (E.D.La. filed August 2, 2006)).
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Canadian D&O Claims Expected To Rise
By Troutman Pepper Locke on
Posted in D&O Liability, United States
According to a recent report by Business Insurance, Canadian insurers should brace for a coming surge in directors’ and officers’ liability claims. The rise in claims is an anticipated consequence of major changes in Canadian securities regulation dating back to 2005.
PCAOB Study: Post-SOX Drop in Market Reaction to Restatements
By Troutman Pepper Locke on
Posted in D&O Liability, United States
In a working paper recently released, the Public Company Accounting Oversight Board (PCAOB), a non-profit entity created by the Sarbanes-Oxley Act (SOX) to oversee the auditors of public companies, found that the loss in market value following announcements of financial restatements has diminished since the July 30, 2002 implementation of SOX.
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Court Rejects Cedent’s Argument that the “Follow the Fortunes” Clause Should be Implied into a Facultative Certificate and Binds Cedent to its Initial Settlement Allocation
By Troutman Pepper Locke on
Posted in Reinsurance, United States
In a recent decision originating from the United States District Court for the Western District of Oklahoma, Oklahoma v. Employers Reinsurance Corp., No. Civ-06-0426-HE, (W.D. Okla. Sept. 13, 2007), the court refused to imply a “follow the fortunes” clause into a facultative certificate in the absence of the explicit inclusion of such a term by the parties.
Connecticut Federal Court Rules that Certain Communications Between a Cedent and Reinsurer in a Hurricane Katrina-Related Case are Not Protected by the Work-Product Privilege
In a case arising out of Hurricane Katrina-related damages, the United States District Court for the District of Connecticut ruled that communications between a cedent and reinsurer that were prepared in the ordinary course of business are not protected by the work-product privilege.
Mississippi Court Denies State Farm’s Motion to Disqualify Dickie Scruggs and the Scruggs Katrina Group
By Troutman Pepper Locke on
On September 12, 2007, Judge L.T. Senter, Jr., sitting in the federal district court in Mississippi, denied a motion filed by State Farm Fire and Casualty Company to disqualify Richard (“Dickie”) Scruggs, his law firm, and other attorneys and firms in the Scruggs Katrina Group from representing plaintiffs in the case of McIntosh v. State Farm Fire & Casualty Co.
Bear Stearns Faces Further Scrutiny as Massachusetts Regulators Probe Failed Hedge Funds
By Troutman Pepper Locke on
The Massachusetts Secretary of the Commonwealth confirmed on Friday October 19, 2007 that it is investigating certain trades in two failed Bear Stearns funds. The investigation, which was first reported in the Wall Street Journal last week, involves trades between Bear Stearns and two hedge funds managed by Bear Stearns that may have been made without the proper disclosures to the funds’ independent directors.
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Supreme Court Grants Certiorari in Cases Involving FDA Preemption
By Troutman Pepper Locke on
Posted in Product Liability, United States
The Supreme Court recently granted a petition for certiorari to review a Second Circuit decision holding that the FDA approval process does not preempt certain state common law claims.
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