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Although there has been a recent slowdown in D&O claims, it appears that D&O insurers may soon be hit with a new wave of claims arising out of the subprime lending crisis.  To date, twelve securities class actions have been filed against mortgage lenders. 

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Read More Subprime Lending Crisis Could Impact D&O Insurers

In National Union Fire Ins. Co. of Pittsburgh, Pa. v. Clearwater Ins. Co., 04-CV-5023 (S.D.N.Y., July 21, 2007), the Southern District of New York denied a cedent’s motion for summary judgment based on the follow the fortunes doctrine, finding that a material issue of fact existed as to whether a portion of a settlement involved payment for consequential damages claims that would be excluded under the reinsurance certificate at issue. 

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Read More Southern District of New York Denies Summary Judgment to Cedent in Case Involving 3M Settlement

Last week, Bear Stearns & Co. announced that it has hired a law firm to investigate losses incurred by two of its hedge funds.  The hedge funds were forced into bankruptcy after losing significant amounts of money from investments in the subprime mortgage market.  The stock market is currently reeling over credit problems stemming from the collapse of the sub-prime mortgage industry. 

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Read More Bear Stearns Hires Law Firm To Investigate Ailing Hedge Fund Investments While Goldman Sachs Hedge Fund Receives $3 Billion Bailout

Metropolitan Life Insurance Co. and Bancorp Services LLC are back in the ring again.  Bancorp has filed a complaint alleging that MetLife is infringing a patent for a system that administers and tracks the values of insurance policies in separate accounts (U.S. Patent No. 7,249,037). 

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Read More Met Life and Bancorp Fight Over Insurance-Related Patents

A Massachusetts trial court recently ruled on a number of issues concerning an insurer’s duties where it agrees to defend an insured under a reservation of rights, including:  (1) an insurer’s duty to defend an affiliated company that owns all of the insured’s shares when only the affiliated company and not the insured is named as a defendant in the lawsuit; (2) an insurer’s duty to pay defense costs for legal work that benefits both the insured and non-insured entities working together as part of a joint defense agreement; (3) an insurer’s duty to pay defense costs for both national and local counsel retained by an insured; and (4) the reasonableness of legal fees incurred when the defense is provided under a reservation of rights. 

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Read More Massachusetts Court Weighs In On Duty To Defend Issues

The Florida Office of Insurance Regulation (the “OIR”) has denied rate filings of three insurance companies, because, according to the OIR, the requested rate decreases were not substantial enough to be in accordance with the legislative overhaul from the January Special Session. 

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Read More Florida Office Of Insurance Regulation Denies Three Rate Filings As “Too High”

In a recent decision, a Florida appellate court found that an insured was not entitled to statutory legal fees against its insurer where the insurer defended the insured under a reservation of rights before bringing a declaratory judgment action concerning coverage. 

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Read More Statutory Attorneys Fees Under Florida’s Insurance Code