In Pozzi Window Co. v. Auto-Owners Ins. Co., No. 05-10559 (11th Cir. Sept. 26, 2008), the U.S. Court of Appeals for the Eleventh Circuit affirmed the judgment against an insurer, finding that the general contractor’s commercial general liability (“CGL”) policy covered damages from water leakage around windows that a subcontractor had installed in a multimillion dollar home. …
Read More Eleventh Circuit Finds Pozzi Insurer Waived Its Defective Component Defense By Not Raising Issue On Appeal

In Federal Ins. Co. v. National Union Ins. Co. of Pittsburg, P.A., No. 07-12274 (11th Cir. Oct. 30, 2008), the U.S. Court of Appeals for the Eleventh Circuit held that an excess liability insurer could not maintain a bad faith action against a lower-level insurer that had settled the underlying tort claim and caused the injured parties to release the insured and all its insurers. 

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Read More Eleventh Circuit Finds Release Of Insured Bars Excess Insurer’s Bad Faith Action Against Lower-Level Insurer

On 2 January 2009 an appeal against the Employers’ Liability Trigger judgment (reported on our blog here) was lodged with the Court of Appeal. While an appeal was not unexpected, it may reinject uncertainty into the EL market. As yet, no hearings of the appeal have been scheduled. 

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Read More UK: EL Policy Trigger Judgment Appealed

Armando Vergilio dos Santos, a representative of the Superintendencia de Seguros Privados (SUSEP), reportedly commented recently that, despite the global financial crisis, the regulator expects 12-15% growth in the Brazilian insurance market in the coming year.  Speaking at a conference in Sao Paolo, Mr. dos Santos reportedly stated “There is no reason, despite the crisis, that we should not remain optimistic. 

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Read More Brazil: Regulator Predicts That Global Financial Crisis Will Not Impede Growth in Nation’s Insurance Market

We reported last year on the SEC’s and FSA’s bans on short selling in financial companies (see the post by clicking here). The FSA has now published a consultation paper reviewing the short selling measures that it implemented last year, which are due to expire on 16 January 2009. Those measures required disclosure to the market of significant (greater than 0.25% of the issued share capital) short positions in UK financial sector companies and banned the creation of, or increase of existing, short positions in those companies. 

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Read More UK: FSA Consults on Changes to Short Selling Rules

As we previously reported here, the American Council of Life Insurers (“ACLI”) submitted a letter to the National Association of Insurance Commissioners (“NAIC”) asking the NAIC to consider changing reserve and risk-based capital requirements that it believes are too conservative.  On January 2, 2009, the NAIC issued a press release to announce that its Capital and Surplus Relief Working Group will hold a public hearing on January 27, 2009 at the Marriott Wardman Park Hotel in Washington D.C. to gather additional comments and information regarding current reserves and capital requirements. 

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Read More NAIC to Hold Public Hearing on Reserve and Capital Relief Proposal

In a recent decision of the United States Court of Appeals for the Fifth  Circuit, Safety National Cas. Corp. v. Certain Underwriters at Lloyd’s of London, No. 06-30262 (5th Cir. Sept. 29, 2008), the court held that the McCarran-Ferguson Act (“McCarran-Ferguson”) does not cause a state law regulating the business of insurance to “reverse preempt” the provisions of a United States treaty. 

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Read More Fifth Circuit Rules New York Convention Not “Reverse Preempted” By Louisiana Statute

On December 31, 2008, Arkansas Governor Mike Beebe announced the appointment of Jay Bradford as the new Commissioner of the Arkansas Insurance Department.  Bradford has served as the Director of the Arkansas Division of Behavioral Sciences for the last two years. …
Read More Jay Bradford Appointed as New Arkansas Insurance Commissioner

Springwell, the unsuccessful party in JP Morgan v Springwell, failed to establish a case that the investment bank was liable for Springwell’s investment losses, and the High Court awarded costs on an indemnity basis against it. …
Read More UK: JP Morgan v Springwell: Costs Awarded on Indemnity Basis After Unsuccessful Investment Losses Claim

The U.S. District Court for the Central District of California recently granted a motion to dismiss, without prejudice, for failure to adequately plead the reliance element of a purported securities class action brought under Section 10(b) of the 1934 Securities Exchange Act. …

Read More California Federal Court Grants Motion to Dismiss For Failure to Plead Reliance in Countrywide Private Placement Action