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Rep. Gene Taylor (D-MS) has introduced H.R. 920, entitled the “Multiple Peril Insurance Act of 2007,” to the United States House of Representatives in response to the denial of claims from Hurricane Katrina due to wind loss. 

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Read More Congress Considering Reforms to National Flood Insurance Program

The Travelers Companies, Inc. has announced a settlement with ACandS Inc. to resolve all current and future asbestos-related coverage claims.  ACandS, an insulation contractor, has been undergoing Chapter 11 reorganization since 2002, and its bankruptcy counsel has described the Travelers insurance coverage as “the most important asset of ACandS’s bankruptcy estate.” 

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Read More Travelers Enters Settlement with ACandS, Ending “Potentially Unlimited” Exposure; Plan Includes Reinsurance Allocation

On June 12, 2007, a New York appellate court reversed a lower court’s decision and held that a reinsurer was not required to follow the fortunes of a cedent’s loss allocation on a single occurrence “per site” basis, finding that such allocation, which allowed the cedent to exceed the facultative reinsurance contract’s $1 million per-occurrence deductible with respect to certain sites, was unreasonable. 

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Read More Reinsurer Not Obligated to Follow Cedent’s Settlement Allocation

In a previous entry, we discussed a recent Katrina-related whistleblower suit filed in the Eastern District of Louisiana.  As we discussed, the lawsuit claims that a number of insurers allegedly misrepresented claims to the National Flood Insurance Program so as to limit their exposure, and was filed by Branch Consultants on behalf of the U.S. government. …
Read More Government Will Not Intervene in Katrina Whistleblower Lawsuit

As previously discussed here, on July 2, 2007, Judge Lewis Kaplan of the S.D.N.Y. requested, to assist in his decision on defendants’ motions to dismiss, that the federal prosecutors in the KPMG tax shelter case estimate the reasonable costs of a defense for the KPMG partners.  The U.S. Attorney’s office recently responded. 

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Read More Update: Federal Prosecutors and Defense Counsel Estimate Criminal Defense Costs for KPMG Partners

New York’s highest court recently considered whether, within the context of a CGL policy, liability must be determined before an additional named insured is entitled to a defense in an underlying personal injury action.  Affirming the decision below, the New York Court of Appeals held that additional insured coverage is not contingent upon a liability finding, and that the obligation of an insurer to provide a defense to an additional named insured under the policy exists “to the same extent as it does to a named insured.” 

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Read More Duty to Defend Additional Insured

With Judge Breyer having postponed ruling on his motion to dismiss until at least July 19, ex-Brocade CEO Greg Reyes’ defense has gone forward this week.  Among the defense’s witnesses this week were two of Brocade’s founders, Seth Neiman and Paul Bonderson, and Jason Gold, formerly a fund manager at one of Brocade’s top investors. 

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Read More The Brocade Trial: Reyes Defense Goes On The Offensive — “Stock Options Costs Are Irrelevant To Investment Decisions”