The West Virginia Supreme Court recently answered  the following question certified from the U.S. District Court in that state: Does the insured bear the burden of showing that a jury awarded damages for covered, as opposed to non-covered, claims when the answer is not clear from the award itself? 

…
Read More West Virginia: Insured Bears Burden of Proving Allocation of Jury Award between Covered and Non-covered Claims Unless Insurer Controls Defense

The Massachusetts Supreme Judicial Court recently held that where an insured “incurs covered costs as a result of ongoing environmental contamination occurring over more than one year and the insurer provided coverage for less than the full period of years in which contamination occurred,” the loss should be pro rated among all the insurers on the risk during the relevant period. …
Read More Massachusetts Highest State Court: Pro-Rata “Time-On-The-Risk” Allocation Method Applies to Ongoing Environmental Pollution Occurring Over Multiple Policy Periods

On 27 July 2009,  the Financial Services Authority (the FSA) issued PS09/14: “The approved persons regime – significant influence function review” (the Policy Statement) confirming that it will extend the approved persons regime for those that perform a ‘significant influence’ function at firms. The changes are aimed at better reflecting the corporate governance structures that exist within firms. 

…
Read More Financial Services Authority Confirms Changes to the Rules for Approved Persons

In Markel International Insurance Company v Timothy Higgins, QBE Insurance (Europe) and another v Timothy Higgins [2009] EWCA Civ 790, the Court of Appeal held that the High Court Judge was correct in his finding that the defendant, Mr Higgins, an underwriting agent who suffered from Alzheimer’s disease, had either conspired with others to defraud Markel and QBE (his principals) or that he had given dishonest assistance to others in breach of his fiduciary duty to Markel/QBE. 

…
Read More UK: Court of Appeal Finds that Alzheimer’s Disease Was No Excuse For Insurance Fraud

As previously reported here, House Financial Services Housing Subcommittee Chairwoman Rep. Maxine Waters (D.-Calif.) and committee chairman Rep. Barney Frank (D.-Mass.) sponsored HR 3139 to temporarily extend the National Flood Insurance Program (the “NFIP”) for a six-month period through March 31, 2010.  Last week, the U.S. House of Representatives approved HR 3139. …
Read More U.S. House Votes to Extend the NFIP

As previously discussed here and here, the United States Treasury Department has recently submitted a proposal to form a Financial Services Oversight Council (the “Council”) composed of various federal regulators to coordinate financial services regulation and oversight, but would not include any state regulators that have a specific insurance or reinsurance regulatory background. …
Read More State Regulators Vie for Seat on the Newly Proposed Financial Services Oversight Council

On 20 July 2009 the opposition Conservative party published a White Paper entitled ‘Plan for Sound Banking’ which proposes an overhaul of financial regulation, including the abolition of the FSA. …
Read More UK: Financial Services Authority Responds to Conservative Party’s Plan to Abolish it

On 27 July 2009 the Insurance Industry Working Group (IIWG) published a report on its vision for the insurance industry in 2020. The IIWG is co-chaired by Alistair Darling, the Chancellor of the Exchequer, and Andrew Moss, Aviva group chief executive, and is made up of representatives from a number of UK insurers and insurance brokers. …
Read More UK: Insurance Industry Working Group Sets Out 2020 Vision

Democrats in the Michigan House are supporting about a dozen consumer protection bills that address unfair trade and “bad faith” claims practices by insurance companies.  The underlying rationale for the Democrats’ staunch support of these bills is that Michigan has weak laws to protect consumers against wrongful denial of insurance claims by home, auto and health care insurance companies. 

…
Read More Michigan Democrats Advocate Consumer Protection Legislation Regarding Bad Faith Claims Denials

Yesterday the House of Lords delivered a unanimous judgment in the long running and often controversial case of Wasa v Lexington [2009] UKHL 40, overturning the decision of the Court of Appeal (previously reported on the blog here). 

…
Read More House of Lords Overturns Court of Appeal Decision in Wasa v Lexington