In Garnat Trading & Shipping (Singapore) PTE LTD (GARNAT) and Vung Tau Shipbuilding Industry Joint Stock Company (Vung Tau) v Baominh Insurance Corporation (Baominh) [2010] EWHC 2578 (Comm), the Court of Appeal considered the first instance judgment of Mr Justice Clarke which we previously reported here. …
Read More UK: Marine Insurance – Non-Disclosure and Seaworthiness

Addressing apportionment issues left unresolved by the California Supreme Court’s decision in Montrose Chemical Corporation v. Admiral Insurance Company, 10 Cal.4th 645 (1995), California’s intermediate appeals court has ruled that an insured that manufactured asbestos-containing products must first exhaust the limits of all of its primary insurance before it may claim benefits under its excess coverage. …
Read More California Court Requires Complete Horizontal Exhaustion of Liability Coverage Before Excess Coverage Can Attach

On July 12, 2011, the U.S. House of Representatives passed the Flood Insurance Reform Act of 2011, H.R. 1309 (the “Act”), by a vote of 406 to 22.  As we previously reported, the Act has been endorsed by President Obama.  The goal of the Act is to the reform to the National Flood Insurance Plan (“NFIP”) in order to help reduce the more than $18 billion debt carried by the NFIP. …
Read More NFIP Reform Passes House, Heads to Senate

The Supreme Judicial Court recently rejected a direct summary judgment appeal from AIG Domestic Claims, Inc. (“AIG”) concerning AIG’s handling of a workers’ compensation claim. The plaintiff alleged, inter alia, that AIG acted outside the claims-handling process by improperly pursuing criminal insurance fraud charges against him. …
Read More Insurer Falls Short in Bad Faith Summary Judgment Bid Before the Massachusetts Supreme Judicial Court

The Associated Press reports that Mississippi Attorney General Jim Hood is suing Kenneth Feinberg, administrator of the Gulf Coast Claims Facility (GCCF), BP Plc’s (BP) $20 billion oil spill fund to get access to claims filed by coastal residents. …
Read More Deepwater Horizon: Mississippi AG Files Lawsuit Against BP Alleging Misconduct With Its $20 Billion Claim Fund

The Fifth Circuit Court of Appeals recently held that a CGL policy did not cover a lawsuit by one employer against another employer for misrepresentations in a letter of recommendation, even though these misrepresentations ultimately led to bodily injury.  Preau v. St. Paul Fire & Marine Ins. Co., No. 10–30816 (5th Cir. June 23, 2011). …
Read More 5th Circuit: No Coverage For Concealing Employee’s Drug Abuse In Letter of Recommendation

Greg Hoffnagle and Rob DiUbaldo of Edwards Angell Palmer & Dodge’s New York office will be presenting “Hydrofracking Risks & Opportunities: What Underwriters Need to Know” at 11:15 a.m. on July 20, 2011: …
Read More Reinsurance Association of America’s Re Underwriting Conference – July 20, 2011 (New York)

In the recent judgment of Maritsave Ltd v National Farmers’ Union Mutual Insurance Society Ltd (2011) EWHC 1660 (QB), the High Court found in favour of Maritsave in respect of a claim for fire damage losses under a property insurance policy and rejected the Defendant insurer’s contention that Maritsave had not complied with certain unoccupied property warranties. …
Read More UK: High Court Rules on Whether Unoccupied Property Warranties Breached

CMS RELEASES OUTPATIENT HOSPITAL PAYMENT PROPOSED RULE
The Centers for Medicare and Medicaid Services (CMS) recently released its hospital outpatient prospective payment system (OPPS) proposed rule for 2012, which will impact Medicare reimbursements to more than 4,000 hospital outpatient facilities. …
Read More Healthcare Update: CMS Releases Proposed Rules for Outpatient Hospital Payments and Physician Payments; CMS Proposes Home Health Cuts; Debt Ceiling Agreement Could Include Healthcare Cuts – July 11, 2011

Earlier this month, the Obama Administration released an official statement through the Office of Management and Budget stating that it supports the reauthorization and reform of the National Flood Insurance Program (“NFIP”). …
Read More Obama Administration Releases Statement Supporting NFIP