The Second Circuit has declared that a bond insurer’s D&O program was obligated to pay costs incurred by an independent consultant who was hired during the course of settlement negotiations, despite the carrier’s claimed lack of an effective association in the settlement.  MBIA, Inc. v. Federal Insurance Company and ACE American Insurance Company, No. 10-355 (2d Cir. July 1, 2011). 
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Read More Second Circuit Finds That D&O Policies Must Cover Costs Incurred By Independent Consultant Hired During Settlement Discussions

The Insurance Insider is reporting that News Corporation’ directors’ and officers’ program in the United States is facing a “raft” of claims relating to the phone hacking scandal.  Please click here for a copy of the article. …
Read More News Corp. Tendering Phone Hacking Lawsuits To D&O Carriers

The New York State Department of Taxation and Finance issued a memorandum regarding changes to the New York tax laws affecting insurance independently procured from unauthorized insurers in order to conform New York law to the requirements of the Nonadmitted and Reinsurance Reform Act of 2010. …
Read More New Tax Form for Insurance Independently Procured From Unauthorized Insurer in New York

German insurance giant Munich Re recently reported that Japan’s earthquake and tsunami in March will make 2011 the costliest year on record for natural disasters.  Total economic losses for the first six months alone were $265 billion, making it the costliest natural catastrophe on record. …
Read More Munich Re Reports 2011 Costliest Year on Record for Natural Disasters

Reinsurance broker Holborn reported that losses from the Japanese earthquake and tsunami could reach an all-time high for reinsurers at $30 billion, according to a recent article in the Insurance Insider. Holburn estimates reinsurers’ share of losses from the Japan disaster at between $20 billion and $30 billion out of the disaster’s total gross loss estimated at $40 billion to $65 billion. …
Read More Japan Reinsurance Losses Estimated at $30 Billion

Earlier this week, California enacted Assembly Bill 315 which allows California to implement provisions of the federal Nonadmitted and Reinsurance Reform Act of 2010 (the “NRRA”). …
Read More California Enacts Legislation Implementing Provisions of NRRA

A recent ruling in John Youngs Insurance Services Ltd v Aviva Insurance Services UK Ltd [2011] EWHC 1515 (TCC) addressed the issue of whether a fiduciary duty arose in an agreement to provide insurance claims handling services. …
Read More UK: High Court Rules on Issue of Fiduciary Duty in Insurance Claims Handling Agreements

In Sovarex SA v Romero Alvarez SA [2010] Folio 1231, Mr Justice Hamblen held that the court had the power to direct that there be a determination of disputed facts under the procedure set out in s66 of the Arbitration Act 1996 (the Act) for the enforcement of arbitral awards. …
Read More UK: High Court Rules on Applicability of Procedure Under s66 of Arbitration Act 1996 to Disputed Issues of Fact

n a case of first impression, New Jersey’s highest court has determined that policyholders’ bad-faith claims against their insurance company for failure to settle within policy limits are traditional contract claims that give insureds the right to a trial by jury. …
Read More New Jersey High Court: Insureds Entitled to Jury Trial on Bad-Faith Claims

On June 22, 2011, New York Insurance Commissioner James Wrynn signed a statement re-adopting Regulation No. 187 governing suitability in annuity transactions (the “Regulation”) on an emergency basis. …
Read More New York Re-adopts Suitability Rule on an Emergency Basis