In perhaps the most widely anticipated Supreme Court decision since Bush v. Gore in 2000, the Patient Protection and Affordable Care Act (“PPACA”) was upheld on Thursday in a narrow 5 to 4 decision. Many believed that the Court would hold the law unconstitutional because of a provision known as the “individual mandate,” which requires most U.S. citizens to purchase health insurance or pay a penalty. …
Read More Healthcare Update: Supreme Court Upholds Constitutionality of Affordable Care Act

In June 2012, the Senate Committee on Insurance passed Assembly Bill 999 by a vote of five to three.  The bill, sponsored by Commissioner Jones and the California Department of Insurance, modifies the long-term care insurance premium rate development process and requires that consumers be permitted to review policy language before purchasing a policy. …
Read More California Senate Committee Passes Long-Term Care Bill

Back in March, the UK Government confirmed that it would change the law on criminal cartels, so that conviction would no longer require proof of dishonesty.  This change could potentially see participation in perfectly lawful and legitimate activities that may involve an element of collective price setting, such as the Lloyd’s subscription market or insurance pools, becoming a criminal offence for the individuals concerned, punishable by up to five years in prison. …
Read More UK: Proposed Changes to Criminal Cartel Offence Creates Risks for Insurance Markets

The Texas Supreme Court recently issued its landmark opinion in the rehearing of Texas Mutual Insurance Co. v. Ruttiger, No. 08-0751 (Tex. June 22, 2012).  The opinion was originally issued on August 26, 2011, but was withdrawn after the Court granted the parties’ motion for a rehearing on February 17, 2012. …
Read More Texas Supreme Court Holds that Workers’ Compensation Carriers are Not Subject to Common Law Bad Faith Claims

In Elafonissos Fishing and Shipping Company v Aigaion Insurance Company SA [2012] EWHC 1512 (Comm), the High Court found that the defendant insurer must pay for losses suffered by the claimant’s fishing vessel as a result of Cyclone Bondo in Madagascar in 2006. …
Read More UK: High Court Says Warranties to be Construed Narrowly

On 1 July 2012, a European Union (EU) ban on payment by EU-based insurers of any claims related to the shipment of oil or oil products across Iran’s borders comes into force. The ban will prevent buyers of Iranian oil from purchasing protection and indemnity (P&I) insurance in the London market. …
Read More EU: Ban on Insurance of Tankers Carrying Iranian Oil

In European Group Limited and Others v Chartis [2012] EWHC 1245 (QB), Mr Justice Popplewell held that damage to the insured’s property during transportation was proximately caused by an external fortuitous accident or casualty, and therefore there was no room for “inherent vice” to be an additional proximate cause. …
Read More UK: English High Court Interprets “50/50” and “Inherent Vice” Clauses