As of August 12 2009, in accordance with Chapter 293 of the Laws of New York 2009, the minimum number of directors required for New York domestic insurers has been reduced from thirteen to seven, and the minimum number of New York resident directors required for domestic insurers has been reduced from two to one. 

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Read More New York Reduces Director Requirements For Domestic Insurers

On September 9, 2009, the U.S. House of Representatives passed the Non-admitted and Reinsurance Reform Act of 2009, H.R. 2571 (the “NRRA”), marking the third time the House has passed a version of the NRRA. 

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Read More House Passes Surplus Lines and Reinsurance Reform Bill

In Fidelity & Deposit Co., et al. v. Douglas Asphalt Co., et al., No. 09-10919 (11th Cir. Jul. 28, 2009), the Eleventh Circuit affirmed the District Court’s judgment in favor of the insurers, who sought to recover from their insured payments made under payment and performance bonds when the insured allegedly defaulted and failed to complete a project. 

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Read More Eleventh Circuit Affirms Judgment In Favor of Contractor’s Insurers, Finding No Bad Faith

Earlier this summer, the U.S. District Court for the Central District of California, Western Division held that an arbitrator’s determination in an underlying claim triggered the intentional acts and personal profit exclusions in both a D&O and E&O policy.  The Court held that the arbitrator’s conclusions not only established the excluded behavior as a matter of fact, but also satisfied the D&O policy’s final adjudication requirement.  The Court then concluded that the insured was required to reimburse defense costs paid by both the D&O and E&O insurers. 

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Read More Federal Court Rules that Arbitration Award Satisfied Final Adjudication Requirement in Intentional Acts and Personal Profit Exclusions

The International Association of Insurance Supervisors (IAIS) has said that it is preparing guidance to the regulatory and supervisory community in relation to insurance securitisation which is expected to be finalised in 2011. 

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Read More International Association of Insurance Supervisors to Prepare Common Standards for Insurance Securities

In a recent decision from the United States Court of Appeals for the Seventh Circuit, WellPoint, Inc. v. John Hancock Life Ins. Co., No. 08-2283 (7th Cir. Aug. 7, 2009), the court ruled that a party seeking to challenge the appointment of a replacement arbitrator must do so at the time of the appointment or else lose its ability to make such a challenge. 

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Read More Seventh Circuit Rules that Challenge to a Replacement Arbitrator Must be Made at the Time of the Appointment and Not at the Conclusion of the Arbitration

On August 28, 2009, Delta Financial Corp. (“Delta”) filed a Notice of Appeal to the United States Court of Appeals for the Third Circuit seeking to overturn the dismissal of its coverage action against Westchester Surplus Lines Insurance Co. (“Westchester”) and United States Fire Insurance Co. (“USFI”).
Read More Delta Financial Appeals Denial of D&O Coverage Based on Inadequate Consideration (“Bump Up”) Exclusion

The Eleventh Circuit Court of Appeals has found that the district court has subject matter jurisdiction over securities claims brought by “F-Cubed” plaintiffs– i.e., a foreign investors who purchased shares in a foreign company on a foreign stock exchange. 

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Read More The Eleventh Circuit Finds Subject Matter Jurisdiction Over “F-Cubed” Plaintiffs

On November 17, 2008, the Securities and Exchange Commission charged Dallas Mavericks’ owner, Mark Cuban, with insider trading.  For those non-sports fans, the Dallas Mavericks is a professional basketball team, and Mark Cuban is the team’s widely outspoken billionaire owner. …
Read More Mark Cuban Demands That The SEC Pay His Legal Fees