A Massachusetts federal court dismissed a coverage lawsuit against a liquor liability insurer, holding that the “supplementary payments” clause in its policy did not require the carrier to furnish a bond to discharge an attachment against the insured’s liquor license. The court agreed that, because the carrier had already paid out its entire limit of liability, it had no obligation to pay either pre-judgment interest or the cost of the bond. …
Read More Massachusetts Federal Court Dismisses Suit Seeking to Hold Carrier Liable for Cost of Bond After Exhaustion of Policy Limit

Last month, in Utica Mut. Ins. Co. v. Amity Ins. Agency, 84 Mass App. Ct. 1111 (Mass. App. Ct. 2013), available here, the Massachusetts Appeals Court issued a favorable decision to an E&O insurer in a duty to defend case. …
Read More Massachusetts Appeals Court Issues Duty to Defend Opinion

More major privacy and data protection developments are in the works in California, following three significant new laws reported here. On September 25, 2013, the California Secretary of State approved steps required to bring before state residents a ballot initiative entitled the Personal Privacy Protection Act (the “Act”). …
Read More CA Residents to Decide on Constitutional Privacy Rights

D&O insurance has long insulated directors and officers of public companies from potential liability. Increasingly, however, board of nonprofit organizations and private companies are looking at D&O insurance for similar protection. …
Read More Developments in D&O Insurance: Increased Demand from Nonprofit Organizations

On September 25, 2013, the U.S. Food and Drug Administration (“FDA”) released final guidance on how it intends to regulate mobile applications (“apps”). The guidance consists of a set of nonbinding recommendations that define what mobile apps meet the definition of a medical device and are therefore subject to FDA’s regulation as medical devices and what mobile apps fall outside the definition of a medical device. …
Read More Healthcare Update: FDA Releases Guidance on Mobile Medical Applications

A new amendment to California’s breach notification statutes extend notification requirements to the breach of California residents’ online account credentials, with distinctive obligations regarding method and content of such notices. …
Read More California Extends Breach Notification Obligations to Online Account Credentials

ACA SMALL BUSINESS EXCHANGES DELAYED

On Thursday, September 26, 2013, U.S. Department of Health and Human Services (HHS) announced that it would delay online enrollment in the health insurance exchanges for small businesses. However, applicants may still enroll by phone, mail or fax starting October 1, 2013. Coverage will start January 1, 2014. …
Read More Healthcare Update: ACA Small Business Exchanges Delayed; Two-Midnight Admission Policy Goes Into Effect

Below is the FIO/FSOC news for the week:

The Federal Advisory Committee on Insurance (FACI) discussed extension of the Terrorism Risk Insurance Act (TRIA) at an open hearing at the Department of the Treasury on September 18, 2013. Minutes from the meeting have not yet been posted on the Treasury website. …
Read More FIO/FSOC Update as of October 2, 2013

Self-insured employer health plans, whether administered by the sponsor or by a third party administrator (TPA), need to be in compliance with the amended HIPAA rules, effective September 23, 2013. That date has now passed and not all employers with self-insured plans are aware of their obligations or have fully complied. …
Read More Employer-Sponsored Health Plans and SEPT. 23 HIPAA DEADLINE: Time for a Tune Up?