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.

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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

In response to recent investigations of reimbursements of out-of-network treatment, New York Governor Paterson announced a proposed regulation that will require health and accident insurers, including health maintenance organizations (collectively, “insurers”), to inform insureds as to the actual reimbursement amount for out-of-network treatment before receiving such treatment. 

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Read More New York Announces Proposed Regulation on Health Insurance Reimbursements

An Illinois appeals court recently upheld the trial court’s dismissal of a derivative action brought against Aon based upon its alleged practice of collecting “contingent commissions.” …
Read More Illinois Appeals Court Affirms Dismissal of Derivative Action Against Aon

In a 5-4 decision, the United States Supreme Court in Ricci v. DeStefano offered little in the way of practical guidance to employers walking the fine line of race-neutral hiring and employment practices, but provided no shortage of controversy for pundits and commentators. …
Read More A Catch-22 for Employers: Supreme Court Rules Against City of New Haven in Reverse Discrimination Case

Petitioner Global Reinsurance Corporation of America (“Global”) and its predecessor companies provided reinsurance coverage to Home Insurance Company.  Global reinsured its contracts with Home by obtaining retrocessional reinsurance coverage from, among others, respondent Argonaut Insurance Company (“Argonaut”). …
Read More New York Federal Court Confirms Arbitration Award Requiring a Retrocessionaire to Reimburse a Reinsurer for IBNR Claims, but Recognizes the Viability of Manifest Disregard of the Law

On 25 June 2009, the High Court approved the statutory transfer of the 1992 and prior non-life business of members and former members of Lloyd’s to Equitas Insurance Limited by way of Part VII transfer under the Financial Services and Markets Act 2000 (FSMA). 

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Read More UK: Equitas Part VII Transfer Approved by High Court

Eric R. Dinallo, Superintendent of the New York Insurance Department, recently proposed an amendment to Regulation 41 (11 NYCRR 27) that governs the standards for excess lines placement (the “Proposed Regulation).  The Proposed Regulation seeks to include additional risks to be insured by excess lines carriers on the New York Export List. …

Read More New York Export List Proposed Regulation

While the ongoing protests and political instability in Honduras certainly pose potential business interruption issues for the country’s commercial sector, the Honduran coup has also now indirectly posed the same threat in neighboring countries Nicaragua, Guatemala and El Salvador. 

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Read More Honduran Coup Poses Significant Trade Issues in Honduras, Nicaragua, Guatemala and El Salvador