The Chairman of the FSA, Lord Adair Turner, gave a speech on 21 January 2009 setting out his views of the causes of the current financial crisis and outlining the future of financial regulation. Although the speech was about banking regulation, the key areas of future regulatory focus – capital adequacy and liquidity – are likely also to be applied to insurers.
Read More UK: FSA Chairman Outlines Future of Financial Regulation
State Farm — Florida’s Largest Provider of Homeowners and Property Related Insurance — Is Withdrawing from the Market
By Troutman Pepper Locke on
Posted in Florida Developments, Regulatory
Florida’s largest private homeowners insurer, State Farm Florida, today informed the Florida Office of Insurance Regulation (OIR) that it will stop selling homeowners and other property-related insurance policies in the state. The company’s withdrawal affects approximately 1.2 million customers who currently have State Farm Florida homeowners, renters, condominium unit owners, personal liability, boats, and/or personal articles insurance. It does not, however, affect State Farm Florida’s 2.8 million automobile insurance customers. …
Read More State Farm — Florida’s Largest Provider of Homeowners and Property Related Insurance — Is Withdrawing from the Market
Hole-in-One Golf Marketer Fined $5.9 Million for Operating an Insurance Company Illegally
By Troutman Pepper Locke on
The Connecticut Insurance Department issued an Order for Default Judgment (the “Order”) and a $5.9 million fine against a marketer of hole-in-one golf contests for engaging in the business of insurance without a license, falsely representing that it is authorized to engage in the business of insurance, and engaging in various unfair insurance practices. …
Read More Hole-in-One Golf Marketer Fined $5.9 Million for Operating an Insurance Company Illegally
Free Latin America Webinar And Whitepaper Now Available Online
By Troutman Pepper Locke on
Posted in Latin American Developments
On January 21, 2009, John P. Dearie, Jr. and M. Machua Millett of Edwards Angell Palmer & Dodge LLP’s insurance and reinsurance department presented a webinar on recent developments in the Latin American (re)insurance markets. The webinar and the supporting whitepaper are now available free online. …
Read More Free Latin America Webinar And Whitepaper Now Available Online
Bolivia Approves New Constitution, Increasing Nationalization Concerns
By Troutman Pepper Locke on
Posted in Latin American Developments
As expected, reports indicate that the people have Bolivia have approved the new constitution proposed by President Evo Morales, though by a smaller margin than some had expected. The new constitution is designed to provide the nation’s indigenous populations a greater role in the country’s political and economic systems by giving the central government greater involvement in the economy, particularly in the areas of natural resources and distribution of land and wealth.
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Read More Bolivia Approves New Constitution, Increasing Nationalization Concerns
Insurer’s Denial of Indemnification of Insured’s Settlement with Claimants Upheld Where Insured Settled Without Insurer’s Consent
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
A California federal court recently held that the consent provision in an insurance policy obligates the insured to notify the insurer and obtain its consent before settling, offering to settle or otherwise incurring a contractual obligation.
Massachusetts Attorney General Investigates Health Insurer and Provider
By Troutman Pepper Locke on
The Boston Globe has reported that the Attorney General for the Commonwealth of Massachusetts, Martha Coakley, has launched an investigation into Blue Cross Blue Shield of Massachusetts and Partners HealthCare. Partners HealthCare owns several Massachusetts hospitals, including Massachusetts General Hospital and Brigham and Women’s Hospital. …
Read More Massachusetts Attorney General Investigates Health Insurer and Provider
Delivery of a Policy is not a Prerequisite to the Enforcement of its Terms; Insurer Can Deny Coverage Based on “Claims Made and Reported” Prerequisites Without First Investigating the Claim
The United States District Court for the District of Massachusetts recently held that delivery of a policy is not a prerequisite to the enforcement of its terms unless a policy so explicitly states. The court also held that an insurer can deny coverage for the failure to satisfy “claims made and reported” policy prerequisites without first investigating the claim.
Missouri Court of Appeals Finds No Right of Equitable Contribution Based on Other Insurance Clauses
By Troutman Pepper Locke on
Posted in Coverage & Claims, United States
The Missouri Court of Appeals, Eastern District recently held that a nurse’s professional liability insurer was not liable for contribution to her employer’s professional liability insurer after the latter settled a wrongful death claim involving the nurse.
Washington Supreme Court Holds that Procedural Bad Faith Claims Are Not Dependant on an Insurer Breaching its Duty to Defend, Settle, or Indemnify
By Troutman Pepper Locke on
The Washington Supreme Court recently held that a cause of action for bad faith claims handling is not dependant on whether the insurer breached its duty to defend, settle, or indemnify, either in the third-party context under the common law, or under the Washington Consumer Protection Act (“CPA”).