United States

Subscribe to United States via RSS

In Phillips v. Prudential Insurance Co. of America, No. 11-3870 (7th Cir. May 6, 2013), the Seventh Circuit recently affirmed dismissal of a putative class action that challenged a life insurer’s use of “retained asset accounts” to make payment of the policy’s benefits. On behalf of a putative class, Zena Phillips sued Prudential, alleging that by not paying her policy benefits in a lump sum, it breached an insurance policy, its statutory duty of good faith, and its fiduciary duties. …
Read More The Seventh Circuit Rules That Life Insurers May Create Retained Asset Accounts to Pay Death Benefits, if the Policy Does Not Require Lump Sum Payments

On the evening of May 23, a large section of the I-5 bridge over the Skagit River in Mt. Vernon, Washington collapsed into the river below. See news articles here and here. According to early reports, an “oversized” truck struck one of the overhead steel trusses on the bridge, which caused the entire structure to fail.
Read More I-5 Bridge Collapse Could Raise Several Thorny Insurance Issues

Earlier this week, the Connecticut House passed HB 5072, limiting the abilities of insurance companies or their representatives to “steer” insureds to specific automotive glass repair facilities. The new legislation follows a trend in Connecticut to dissuade insurers from directing insureds to use specific facilities. Connecticut’s existing laws prevent appraisers from requiring that specific locations or companies be used for automotive repairs. …
Read More Connecticut Considering Auto Glass Repair Disclosure Bill

On Monday, Southern District of New York Judge Shira Scheindlin dismissed the entire suit in Gusinsky v. Barclays, without leave to amend and with prejudice. The plaintiffs, holders of American Depository Shares in Barclays Bank, had brought claims under Section 10(b) and Rule 10b-5 of the ’34 Act against Barclays, and Section 20(a) control person liability claims against individual directors of the bank for the bank’s role in the manipulation of LIBOR. …
Read More With Securities Case Dismissal, Another Loss in the Southern District for LIBOR Plaintiffs

The Financial Stability Oversight Council released its third annual report on April 25, 2013, which fulfills its Congressional mandate under the Dodd-Frank Wall Street Reform and Consumer Protection Act to annually report on its activities, describe significant financial market and regulatory developments, analyze potential emerging threats, and make recommendations for additional steps that should be taken to strengthen the financial system. …
Read More FSOC Issues Its Third Annual Report

On May 9, 2013, the Office of Foreign Asset Control (“OFAC”) announced a settlement with the American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the “American Club”) under the OFAC sanction programs against Cuba, Sudan and Iran. The American Club is a non-profit international marine mutual insurance association of merchant ship owners and charterers with its principal offices in New York. …
Read More Shipping Insurer Settles with OFAC under Iranian, Cuban and Sudanese Sanctions

In PHL Variable Insurance Company v. The P. Bowie 2008 Irrevocable Trust (May 13, 2013), the United States Court of Appeals for the First Circuit issued an order holding that a life insurer may retain premium in a case involving a stranger originated life insurance transaction.
Read More Court Allows Insurer to Retain Premium in a STOLI Case

Last week, Representative Bennie Thompson, a Democrat Congressman from Mississippi, introduced the Fostering Resilience to Terrorism Act of 2013, which would extend the Terrorism Risk Insurance Act by ten years. TRIA, which is set to expire at the end of 2014, was the subject of another proposed extension earlier this year but that proposal merely extended the program five years. …
Read More TRIA Extension Bill Is Introduced in Congress in the Wake of the Boston Attacks