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). 

…
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. 

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

General Reinsurance Corporation (“Gen Re”) reinsured certain commercial excess liability policies issued by Mid-Continent Casualty Company (“Mid-Continent”).  See Mid-Continent Cas. Co. v. General Reins. Corp., No. 07-5050 (10th Cir. May 22, 2009).  After a dispute arose between the parties, Mid-Continent filed a lawsuit against Gen Re in federal district court in Oklahoma, and Gen Re sought to compel arbitration under the Federal Arbitration Act (“FAA”). …
Read More U.S. Court of Appeals for the Tenth Circuit Finds that Arbitration Agreements in Reinsurance Contracts Are Enforceable under Oklahoma Law

On June 11, 2009, Ashland Inc., the maker of Valvoline Motor Oil, filed a complaint against Morgan Stanley in the U.S. District Court for the Southern District of New York, based upon Morgan Stanley’s alleged sale of Auction Rate Securities (“ARS”) to Ashland. …
Read More ARS Suit by Valvoline Maker Alleges Morgan Stanley Fraudulently Misrepresented Securities

In Ginther v. Farmers New Century Insurance Company, No. 04-3478 (3d Cir. Apr. 21, 2009), the United States Court of Appeals for the Third Circuit recently upheld “the other household vehicle exclusion” contained in an automobile insurance policy. …
Read More Third Circuit Upholds Validity of Other Household Vehicle Exclusion

On June 24, 2009 Florida Governor Charlie Crist vetoed Florida HB 1171, a property insurance reform bill, sought by the insurance industry and business advocacy groups.  HB 1171 would have permitted insurers with adequate reserves to offer policies at whatever rate the market would bear while rate regulated companies continued to sell policies in Florida. …
Read More Florida Governor Charlie Crist Vetoes Property Insurance Reform Bill