In recent years, California has sought to establish disincentives for insurance companies to invest in certain sectors of the Iranian industry. However, in early 2012, following challenges to its authority to require divestment, the California Insurance Department (the “Department”) entered into a settlement and agreed not to bar insurers from investments in companies doing business with Iran. …
Read More California Continues to Publicize Insurers Involved in Iranian Investments

In State of Wash. Dep’t of Transp. v. James River Ins. Co., No. 87644-4 (Wash. Jan. 17, 2013), the Washington Supreme Court recently determined that a state statute prohibits binding arbitration clauses in insurance policies. The decision arose out of an insurance coverage dispute between James River Insurance and one of its insureds, the Washington State Department of Transportation (the “Department”). …
Read More Binding Arbitration Clauses in Insurance Policies Found Unenforceable in Washington

In Zaki & Ors v Credit Suisse (UK) Ltd [2013] EWCA Civ 14, the Court of Appeal upheld the decision of the High Court in finding that Credit Suisse (UK) Ltd (the Respondent) was not liable for financial losses suffered as a result of alleged breaches of its statutory duty. …
Read More UK: Court of Appeal Holds Bank Not Liable for Losses Arising From Alleged Breaches of its Statutory Duty

In International Energy Group Limited v Zurich Insurance Plc UK Branch [2013] EWCA Civ 39, the Court of Appeal overturned the first instance decision of Mr Justice Cooke in the High Court. The Court of Appeal decided that the defendant insurer (the Defendant) must indemnify the claimant insured (the Claimant) in full for the damages paid by the Claimant to an employee who had died of mesothelioma, following exposure to asbestos fibres during his 27 year employment with the Claimant.
Read More UK: Court of Appeal Decides In Favour of Insured in Asbestos Case

On February 5, 2013, the New Jersey Department of Banking and Insurance (“DOBI”) issued Order No. A13-104 (the “Order”) requiring insurers to expedite their response to claims complaints resulting from Superstorm Sandy. Insurers must now respond to inquiries from DOBI within five business days of receipt of a DOBI claim inquiry, and may only request one extension for an additional five business days in which to respond. …
Read More New Jersey issues Order to Speed Up Processing of Superstorm Sandy Claims

On January 24, 2013, Florida Representative Jimmy T. Patronis (R) filed House Bill 535 (the “Bill”), which, among other things, would allow owners of certain life insurance policies to use viatical settlement contracts to cover the cost of Medicaid long-term care services. If adopted, the Bill would alter existing law, which requires exhaustion of a person’s assets, including allowing any in-force life insurance policies to lapse, before paying out Medicaid benefits. …
Read More Florida Bill would Allow Policyholders to Use Viatical Settlement Proceeds to Pay for Medicaid-Covered Long-Term Care

The European Commission (Commission) has published a study conducted by Ernst & Young on potential competition issues relating to the operation of co(re)insurance pools and ad hoc co(re)insurance agreements on the subscription market. …
Read More EU: European Commission Publishes Competition Study on Co(re)insurance and the Subscription Market

A federal court in Manhattan recently found that a policyholder’s untimely notice of a roof collapse relieved a general liability insurance carrier of any duty to defend or indemnify. The decision is notable because it involved a carrier’s late notice defense under New York Insurance Law § 3420(a)(5), which changed New York’s long-standing no-prejudice rule for policies issued on or after January 17, 2009. …
Read More New York Federal Court Finds That Insurer Was Prejudiced By Late Notice of an Insured’s Claim, Relieving Insurer of its Duty to Defend or Indemnify

On the first morning of the PLUS D&O Symposium, a panel discussed the emerging field of D&O insurance issued to private and non-profit companies, and whether this market was a “Nest Egg or Power Keg.” The panelists commented that insurers of private companies can be exposed to broad lawsuits involving unexpected liabilities that were not intended to be within the scope of D&O coverage. …
Read More PLUS D&O Comment: Private Companies, Tortious Interference, and Contractual Liability Exclusions

The National Association of Insurance Commissioners (“NAIC”) held its Fall National Meeting (the “Meeting”) from November 29th through December 2, 2012. Among the topics discussed was the need to address the perceived “XXX and “AXXX” reserve redundancies applicable to life insurers. …
Read More NAIC Fall National Meeting Foreshadows More Flexibility for Life Insurers