Despite warnings from the Bush Administration, as reported here that it would not support any legislation expanding the National Flood Insurance Program (“NFIP”) to include windstorm coverage, the House Financial Services Committee approved the Flood Insurance Reform and Modernization Act of 2007 (H.R. 3121), which contains just such an amendment to the NFIP.
United States
National Insurance Act/Optional Federal Charter Legislation Reintroduced in House
Following up on our post last month, on July 24, 2007, a bipartisan optional federal charter (OFC) bill was proposed in the House by Reps. Melissa Bean (D-IL) and Ed Royce (R-CA), serving as a companion bill to the previously-filed Senate version, both of which are entitled the National Insurance Act of 2007. …
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Consumer Federation Of America Urges Ban On Anti-Concurrent-Causation Clauses
By Troutman Pepper Locke on
In a letter dated June 25, 2007, the Consumer Federation of America urged insurance commissioners around the country to ban the use of anti-concurrent-causation clauses (“ACC clauses”) in insurance policies.
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SEC Releases Competing Proposals For Shareholder Participation In Contested Elections
By Troutman Pepper Locke on
On July 27, 2007, the Securities and Exchange Commission posted two separate proposing releases that relate to shareholder access to a public company’s proxy ballot in connection with director elections. The unusual aspect of these releases is that they represent alternative and very different approaches to the same issue.
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Stock Options Backdating: Recent Developments in Government Investigations
By Troutman Pepper Locke on
Posted in D&O Liability, United States
Recent developments in the Brocade, KLA-Tencor and Brooks Automation stock option backdating matters are of interest. …
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Massachusetts Insurers Insolvency Fund Not Implicated Until Uninsured Motor Vehicle Coverage Is Exhausted
On July 12, 2007, the Massachusetts Supreme Judicial Court held that, where a vehicle causing an accident is owned by a governmental entity and is insured by an insolvent insurer, the Massachusetts Insurers Insolvency Fund is not obligated to compensate the injured individual unless and until the injured individual’s own uninsured motor vehicle coverage has been exhausted.
Eleventh Circuit Bars Life Insurance Actions Due to Prior Class Action Settlement
By Troutman Pepper Locke on
Posted in Life Insurance & Annuities, United States
In Adams v. Southern Farm Bureau Life Insurance, No. 98-00020-CV-CDL-4 (July 25, 2007), the Eleventh Circuit Court of Appeals affirmed the district court’s opinion that res judicata barred appellants’ claims, owing to the settlement of an earlier consumer class action against Southern Farm Bureau Life Insurance Company (“Southern Farm”).
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The Hartford Announces Settlement of Recent Investigations
By Troutman Pepper Locke on
On July 23, 2007, The Hartford Financial Services Group, Inc. announced settlements of recent investigations for a total of $115 million in restitution and penalties. Specifically, the Company entered into a settlement with the New York Attorney General’s Office relating to an investigation of variable annuity market timing issues.
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Beneficiary of Surety Bond Lacks Standing to Assert a Direct Action Against Reinsurer
By Troutman Pepper Locke on
In Jurupa Valley Spectrum, LLC v. National Indem. Co., et al., 06 Civ. 4023 (S.D.N.Y., June 29, 2007), the Southern District of New York examined whether a beneficiary of surety bonds had standing to bring a cause of action for bond payments against the reinsurer of a bond issuer.
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Second Circuit Establishes a New Standard for Arbitrator Bias
By Troutman Pepper Locke on
A recent decision originating from the United States Court of Appeals for the Second Circuit has established a new standard for determining issues of arbitrator bias.
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