On Thursday morning, President Obama unveiled a proposal that takes aim at the size of the nation’s major financial institutions and seeks to limit the proprietary trading and other risks taken by such institutions.  The President was joined by former Federal Reserve Chairman and head of the Economic Recovery Advisory Board, Paul Volcker, who has long pushed for more robust financial overhaul provisions such as those included in today’s announcement. …
Read More President Obama Announces New Proposal on Bank Limits

Insurers may see increased exposure on employers’ liability policies in 2010, particularly related to noise-related personal injuries, as the effects of the so-called textile deafness test litigation are felt in the industry. …
Read More UK: Insurers Face More Noise-Induced Hearing Loss Claims Following Court of Appeal Decision

Each year the FTC is required by statute to adjust the thresholds for Hart-Scott Rodino pre-merger filings.  HSR filings and consequent regulatory approval of the transaction are required prior to closing a transaction involving the acquisition of assets (including exclusive licenses) or securities that meets the operative thresholds. 

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Read More United States Federal Trade Commission Lowers Pre-Merger Filing Thresholds

The International Development Bank recently approved a US$ 3.3 million loan to the Federacion Interamericana de Expresas de Seguros (FIDES) to increase the use of microinsurance in Latin America.  Ten companies will participate in the project with the goal of designing and commercializing life, casualty and health microinsurance products. …
Read More International Development Bank Grants US$ 3.3 Million Loan for Expansion of Microinsurance in Latin America

Petitioner United States Life Insurance Company (“U.S. Life”) reinsured workers’ compensation policies issued by five insurers domiciled in California (collectively, “SNICIL”).  The five insurers later declared insolvency, and the California Insurance Commissioner became SNICIL’s statutory liquidator.  A dispute arose between the parties, and U.S. Life demanded arbitration. …
Read More Ninth Circuit Confirms Arbitration Award, Holds that Panel’s Ex Parte Meeting with Certain Expert Witnesses did not Justify Vacatur

The Superior Court of Pennsylvania recently found a concurrent-cause exclusion in an all-risks insurance policy to be unenforceable in a case involving hurricane damage to an insured’s business premises and inventory caused by sewer and drain backup followed by flooding. 

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Read More Pennsylvania Superior Court Finds a Concurrent-Cause Exclusion to be Unenforceable in Connection with Hurricane-Related Water Damage

On December 30, 2009, the United States District Court for the Southern District of New York in MBIA, Inc. v. Federal Ins. Co. et al., Civ. No. 08cv4313 (S.D.N.Y. Dec. 30, 2009), held that, in certain instances, legal costs incurred by a special litigation committee in connection with a shareholder derivative litigation may be covered under a D&O policy. …
Read More D&O Update: Court Addresses Coverage for Legal Costs Incurred by a Special Litigation Committee

PMA Capital Insurance Company (“PMA”) and Platinum Underwriters Bermuda, Ltd. (“Platinum”) entered into a reinsurance agreement that contained, among other things, a “deficit carry forward” provision.  A dispute arose between the parties concerning the validity and scope of this provision, which was submitted to arbitration. 

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Read More Federal Court Vacates Arbitration Award, Finding That Panel’s Award was Completely Irrational and the Panel Exceeded Its Powers by Unilaterally Removing Provision from Reinsurance Agreement

The Second Circuit Court of Appeals recently affirmed a United States District Court for the District of Connecticut’s judgment awarding summary judgment for an insurer seeking to rescind a life insurance policy on the basis that the policy application contained material misrepresentations of fact. …
Read More Second Circuit Court of Appeals Affirmed Summary Judgment For Insurer Ordering Rescission of a Life Insurance Policy Due to Material Misrepresentations in the Application

The United States District Court for the District of Connecticut recently awarded summary judgment in favor of an insurer holding that the insurer had no duty to defend or indemnify the insureds under a rental car’s supplemental liability insurance policy due to the “use” exclusion. 

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Read More Connecticut Federal Court Awarded Summary Judgment for Insurer Due to “Use” Exclusion of Rental Car Supplemental Liability Insurance Policy