On July 1, 2009, the Department of Justice announced that it had entered into a deferred prosecution agreement with homebuilder Beazer Homes USA (“Beazer’) in connection with its alleged mortgage and accounting fraud. 

…
Read More Beazer Homes Enters Deferred Prosecution Agreement Regarding its Subprime Mortgage Origination Practices

Argentina Official estimates of the number of swine flu cases in Argentina have reached 100,000, causing concerns about the potential impact on the nation’s economy generally and the insurance industry more specifically. 

…
Read More Latin American Update: Swine Flu in Argentina, Premium Growth in the Dominican Republic, Coverage Issues Relating to the Coup in Honduras

Last month, the Connecticut Appellate Court ruled that where coverage is excluded under a policy of insurance, a plaintiff may not pursue a bad faith claim against the insured in connection with the insured’s denial of coverage. 

…
Read More Connecticut Appellate Court: Plaintiff May Not Maintain Bad Faith Claim in Connection With a Denial of Coverage Where Coverage is Excluded

Brazilian insurance and reinsurance regulator SUSEP recently issued guidance stating that it does not consider valid reinsurance issued to group health organizations, medical cooperatives and autogestion organizations. 

…
Read More Latin American Update: Brazil, Chile, Mexico, Peru, Venezuela

The New Jersey Department of Banking and Insurance recently issued Bulletin 09-21, which advises that amendments to N.J.S.A. § 17:22-6.59 and 17:22-6.64 were enacted on June 29, 2009.  The amendments change the surplus lines premium tax rate from three percent to five percent. 

…
Read More New Jersey Increases Surplus Lines Premium Tax Rates

On June 9, 2009, oral arguments took place in Corban v. USAA Insurance Company, the first Katrina wind v. water insurance dispute heard by the Mississippi Supreme Court. 

…
Read More Katrina: Mississippi Supreme Court Hears First Katrina Wind v. Water Insurance Dispute

The Superior Court of New Jersey, Appellate Division recently held that the term “physical damage,” as used in a policy covering damage due to the loss of electric power, was ambiguous in the context of the Northeast Blackout of 2003 involving a loss of power that was not caused by permanent “physical damage” to the electrical plant and equipment. 

…
Read More New Jersey Appellate Court Reverses Summary Judgment Ruling in Favor of Insurer in Coverage Dispute Regarding Northeast Blackout of 2003

Investors of iShares Trust, (“iShares”), a investment management company, filed a federal class-action lawsuit against the company and certain of its directors and officers alleging, among other things, violations of Section 80a-13 of the Investment Company Act of 1940 (the “ICA”) as a result of iShare’s investment of 11 percent of a corporate bond fund, approximately $400 million of the fund’s total net assets, in Lehman Brothers (“Lehman”) subordinated bonds on the eve of Lehman’s demise. 

…
Read More Shareholders File Suit Following Company’s Decision to Invest Eleven Percent of Assets in Lehman Brothers – On Day Before Lehman’s Collapse

As previously discussed in this space, a new draft insurance law (see here, here, here and here) and nationalization of private property (see here) have caused significant concern among insurers and reinsurers about doing business in Venezuela.  These concerns, however, continue to be at least somewhat counterbalanced by impressive growth in the country’s insurance market. 

…
Read More Despite Concerns About New Insurance Law and Expropriation Risk, Venezuelan Insurance Market Grows 38%

On June 26, 2009, Senate Bill 894, An Act Requiring Disclosure of Automobile Liability Insurance Policy Limits Prior to the Filing of a Claim (“SB 894”), was sent to the Connecticut Secretary of State for approval or veto by the Governor. 

…
Read More Proposed Legislation in Connecticut Will Require Insurers to Disclose Automobile Liability Insurance Policy Limits Prior to a Claim Being Filed