On November 24, 2008, Duke University and its affiliate, Duke University Health Systems, Inc. (“DUHS”; collectively with Duke University, “Duke”) filed a federal action alleging that Duke’s insurer had acted in bad faith and breached its contractual duty to advance and pay Duke’s defense costs, to indemnify Duke, and to pay settlements agreed to by Duke in connection with various claims and lawsuits arising from the indictment of three members of the Duke University 2005-2006 men’s lacrosse team (the “Duke Three”) on charges of sexual assault.
Read More Duke University and Its Insurer Dispute Whether Insurer is Liable for Defense Costs and Indemnification Relating to Duke Lacrosse Rape Case and Settlements
Client Advisory – Second Extension of Robust New Extraterritorial Massachusetts Security Rules
On February 11, 2009, the Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) announced that the effective compliance date of the security regulation, 201 CMR 17.00 (the “Regulation”), has been extended a second time from May 1, 2009 to January 1, 2010. …
Read More Client Advisory – Second Extension of Robust New Extraterritorial Massachusetts Security Rules
Third Circuit Vacates Dismissal of Celebrex Securities Fraud Class Action
By Troutman Pepper Locke on
Posted in Product Liability, United States
The United States Court of Appeals for the Third Circuit (“Third Circuit”) recently vacated the dismissal of a securities fraud class action alleging that a pharmaceutical company, Pharmacia, Inc., made materially false statements about a clinical study of a popular anti-inflammatory medication. …
Read More Third Circuit Vacates Dismissal of Celebrex Securities Fraud Class Action
NAIC and NCOIL File Suit to Overturn SEC Rule Classifying Indexed Annuities as Securities
By Troutman Pepper Locke on
This updates our January 28, 2009 and December 22, 2008 blog postings. On February 10, 2009, the National Association of Insurance Commissioners (“NAIC”) and the National Conference of Insurance Legislators (“NCOIL”) filed suit in the U.S. Court of Appeals for the District of Columbia Circuit seeking to overturn Rule 151A adopted by the Securities and Exchange Commission (“SEC”) which classifies certain indexed annuities, previously regulated as insurance, as securities, and thus subjects them to federal, rather than state, regulation. …
Read More NAIC and NCOIL File Suit to Overturn SEC Rule Classifying Indexed Annuities as Securities
NY Insurance Department Issues OGC Opinion Answering Questions Regarding NY’s Late Notice Statute
By Troutman Pepper Locke on
The New York Insurance Department issued OGC Opinion No. 09-01-05 addressing several questions posed with respect to Chapter 388 of the Laws of 2008 (generally referred in this blog as the late notice Legislation), and the discussion of the Legislation in the Insurance Department’s Circular Letter 26 (Nov. 18 2008),
Boeing Prevails in Satellite Arbitration
By Troutman Pepper Locke on
Boeing Company has announced in its recent 10-K filing (9 February 2009) that it has prevailed in an arbitration brought by insurers in respect of a defective model 702 satellite. Insurers of Thuraya Satellite Telecommunications (Thuraya) commenced arbitration in 2004 alleging that Boeing Satellite Systems International, Inc. (BSSI) breached its contract with Thuraya for the sale of a satellite that experienced power loss issues.
U.S. Court of Appeals for the Second Circuit Finds that Insured Cannot Assert a Direct Action Against its Reinsurer
By Troutman Pepper Locke on
Plaintiff Jurupa Valley Spectrum, LLC (“Jurupa”) is a beneficiary of certain surety bonds issued by Frontier Insurance Company, which were reinsured by National Indemnity Company (“NICO”). See Jurupa Valley Spectrum, LLC v. National Indemnity Co. and National Liability & Fire Ins. Co., No. 07-cv-3211 (2d Cir. Feb. 4, 2009).
UK: Court of Appeal Considers Non-Disclosure and Notification in the Context of Legal Expenses Insurance
By Troutman Pepper Locke on
Posted in United Kingdom
In Laker Vent Engineering Ltd v Templeton Insurance Ltd [2009] EWCA Civ 62 Templeton Insurance Ltd (Templeton) appealed against a decision that it was bound to indemnify Laker Vent Engineering Ltd (Laker) under a legal expenses policy in respect of the costs arising out of an arbitration between Laker and a German company, Gas Wesser Umwelt Gommen GmbH (GWUG). …
Read More UK: Court of Appeal Considers Non-Disclosure and Notification in the Context of Legal Expenses Insurance
Lawmakers to Introduce the National Insurance Consumer Protection and Regulatory Modernization Act
By Troutman Pepper Locke on
On February 11, 2009, Representatives Melissa Bean (D-IL) and Ed Royce, (R-CA) announced that they plan to introduce the National Insurance Consumer Protection and Regulatory Modernization Act (the “Act”). The Act would create a federal charter for insurance regulation and would create, according to Rep. Bean, a “streamlined and uniform regulatory process that enhances competition and reduces the multi-state regulation barriers.” …
Read More Lawmakers to Introduce the National Insurance Consumer Protection and Regulatory Modernization Act
UK: FSA Clarifies ICOBS Rules in Response to Competition Commission’s Final Report into Payment Protection Insurance (PPI) Market
By Troutman Pepper Locke on
In response to the Competition Commission’s (the Commission) final report into the PPI market which was published on 29 January 2009 (see our previous blog here), the Financial Services Authority (FSA) has considered the measures proposed by the Commission and as a result has clarified its own handbook rules for a firm selling PPI contained in the Insurance Conduct of Business sourcebook (ICOBS).