The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has announced that it will run an EU-wide stress test for Europe’s largest insurers during December. It is expected that large (re)insurers such as Hannover Re, Munich Re and Allianz will be tested. 

…
Read More EU: European Insurers to Undergo Stress Tests in December

On Tuesday, November 10, 2009, the Senate Banking Committee, chaired by Senator Christopher Dodd (D-CT), released a first draft for discussion of the American Financial Stability Act of 2009 (the “Act”). 

…
Read More Senate Banking Committee Releases First Draft of American Financial Stability Act of 2009; Includes Nonadmitted and Reinsurance Reform Act and National Insurance Office

In November 2008 we reported here that the English High Court had ruled that employers’ liability policies, however they are worded, are triggered by exposure to asbestos and not when, many years later, the tumour develops. 

…
Read More UK: Employer’s Liability Trigger Judgment – Appeal Starts Today

On 2 November 2009, the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) released its third set of advice on Solvency II Level 2 implementing measures. 

…
Read More EU: Third Set of Advice on Solvency II Level 2 Implementing Measures Released

Last month, the United States District Court for the District of Maine certified a question of law to the Supreme Judicial Court of Maine regarding the issue of what constitutes cognizable injury to a consumer in a case stemming from the alleged theft of credit card data, a question of great significance in the relatively new field of data security law. 

…
Read More District of Maine Certifies Question of What Constitutes “Cognizable Injury” from Data Breach to Supreme Judicial Court of Maine

QBE Insurance Group recently stated that the company expects its gross written premiums from Latin American operations to grow by 7.14% for the year 2009.  The company further reported that each of its Latin American operations, which include both direct insurance and reinsurance and span Mexico, Argentina, Brazil and Colombia, was individually profitable. 

…
Read More QBE Expects 7.14% Premium Growth for Latin American Operations in 2009; ACE’s Latin American Life Insurance Premiums Up 85%

In a recent decision by the United States District Court for the Northern District of California, the court held that an insurer does not have to provide D&O insurance coverage to a group of bondholders who took on the responsibilities of the bankrupt insured.  The ruling was based on the insured’s failure to disclose in the policy application a written demand letter alleging a breach of fiduciary duties. 

…
Read More California Federal Court Holds That D&O Insurer is Permitted to Rescind Policy Based on Nondisclosure in Application

The United States District Court for the Northern District of Georgia recently held that an insurer had a duty to defend under a CGL policy and umbrella policy against claims relating to a hotel guest’s alleged contraction of Legionnaire’s Disease from a dirty hot tub. …
Read More Georgia Federal District Court Finds that Hot Tub Water is “Intended for Bodily Consumption”

The U.S. District Court for the Eastern District of Pennsylvania, applying Pennsylvania law, recently held that the fraudulent acts/willful violation exclusion contained in the subject Executive Protection Portfolio policy (the “Policy”) precluded coverage of defense costs for a criminal action and related derivative and securities lawsuits against an insured CEO.  The court also ruled that the insurer was entitled to recoup defense costs advanced. 

…
Read More Pennsylvania Federal Court Rules That Fraudulent Acts/Willful Violation Exclusion Bars Coverage Based on CEO’s Guilty Plea and Insurer Entitled to Recoupment of Defense Costs