The Financial Services Authority has published a consultation paper (CP09/18) in connection with the distribution of retail investments (including life products but excluding pure protection products: see below) – known as its retail distribution review (RDR). 

…
Read More UK: Financial Services Authority to Abolish Commission Payment Structures

On June 16, 2009, U.S. District Court Judge Stanwood R. Duval Jr. granted a request by insurers to strike class allegations asserted in In re Katrina Canal Breaches Consolidated Litigation (click here for a copy of the Order).  Judge Duval reasoned that the claims required individualized fact-specific inquiries which made them inappropriate for class certification. 

…
Read More Katrina: Insurance Class Allegations Stricken in In re Katrina Canal Breaches Consolidated Litigation

In a recent decision of the United States District Court for the Southern District of New York, Cooke & Partners, Ltd. v. Certain Underwriters at Lloyd’s, London, No. 08 Civ. 3435 (RJH) (S.D.N.Y. Mar. 26, 2009), the Court compelled the assignee of a liquidator’s claims to arbitrate its disputes with the reinsurers of the liquidated company. 

…
Read More Southern District of New York Compels Arbitration of Assignee of Liquidator’s Claims Under the New York Convention

We have previously reported on the UK Financial Services Authority’s (FSA) temporary ban on the short selling of stocks in the UK financial sector (which has now expired) and the ongoing disclosure requirements in relation to new and existing short positions. 

…
Read More UK: FSA Extends Short Selling Disclosure Requirements

In Chartbrook Ltd v Persimmon Homes Ltd [2009] UKHL 38, Persimmon appealed three issues relating to the construction of a payment clause in a contract for the redevelopment of Chartbrook’s land by Persimmon. Persimmon contended that (1) its construction of the clause was correct (2) the rule on excluding pre-contractual negotiations as an aid to construction of a contract should be reversed (3) rectification of a contract should be based on an objective, rather than subjective, assessment of the parties’ common intention. 

…
Read More UK: Construction of a Contract – House of Lords Delivers Significant Decision

In ‘Brent London Borough Council (Appellant) v Risk Management Partners Ltd. (Respondent) & (1) London Authorities Mutual Ltd. (2) Harrow London Borough Council (Interested Parties) (2009)’ [EWCA Civ 490] the Court of Appeal held that the actions of Brent London Borough Council (Brent), specifically in relation to its decision to abandon a tender process for insurance cover in favour of a mutual insurer in which it was a participating member, were beyond the authority granted to it by Parliament. …
Read More UK: Court of Appeal Ends Local Authorities’ Insurance Venture

On June 25, 2009, the Non-Admitted and Reinsurance Reform Act of 2009 (S. 1363) was reintroduced into the Senate by Senators Evan Bayh (D-Ind.) and Mel Martinez (R-Fla.).  S. 1363 is a companion bill to H.R. 2571, discussed here, which was introduced into the House on May 21, 2009.

…
Read More Non-Admitted and Reinsurance Reform Act Reintroduced into the Senate

In Taylor v. Sentry Group of Companies, No. 08-35116 (9th Cir. May 20, 2009), the plaintiff was severely injured in an automobile accident, with medical expenses alone exceeding $200,000.  The tortfeasor’s insurance policy had a limit of only $25,000.  The tortfeasor’s insurer offered the plaintiff the entire policy limits as settlement on three separate occasions.  Each offer was rejected by the plaintiff. …
Read More Ninth Circuit Holds That Insurer’s Failure to Offer More Than Policy Limits Is Not Bad Faith

On June 26, 2009, the New Jersey Department of Banking and Insurance (“DOBI”) issued a press release announcing the Senate confirmation of Douglas A. Wheeler as the new Director of the Division of Insurance. …
Read More Doug A. Wheeler Confirmed as New Jersey Insurance Director