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.
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UK: JP Morgan v Springwell: Costs Awarded on Indemnity Basis After Unsuccessful Investment Losses Claim
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
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. …
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California Federal Court Grants Motion to Dismiss For Failure to Plead Reliance in Countrywide Private Placement Action
By Troutman Pepper Locke on
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. …
Eleventh Circuit Broadly Construes Prior Litigation Exclusion
By Troutman Pepper Locke on
Posted in D&O Liability, United States
The United States Court of Appeals for the Eleventh Circuit recently held that a D&O policy’s so-called “Prior Litigation” Exclusion barred coverage for a shareholder derivative action because it was “in any way related” to litigation pending prior to the Prior Litigation Date specified in the policy.
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California Federal Court Dismisses Shareholder Derivative Action Against Countrywide
By Troutman Pepper Locke on
The U.S. District Court for the Central District of California recently granted the defendants’ motion for judgment on the pleadings in a consolidated shareholder derivative action alleging breach of fiduciary duty against Countrywide’s former directors and officers arising out of Countrywide’s exposure to the subprime crisis.
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Eleventh Circuit Certifies Conflict-of-Law Question to Florida Supreme Court: Does Law of Place of Contracting or Law of Place of Insured’s Risk Govern Coverage Under CGL Policy?
By Troutman Pepper Locke on
In Fidelity & Guaranty Co. v. Liberty Surplus Ins. Co., No. 08-10544 (11th Cir. Dec. 2, 2008), the United States Court of Appeals for the Eleventh Circuit certified to the Florida Supreme Court the question of whether the law of the place of contracting or the law of the place of the insured’s risk governs a coverage dispute arising from a commercial general liability (“CGL”) policy.
U.S. Supreme Court Rules That State Law Fraud Claims Are Not Preempted by Federal Cigarette Labeling and Advertising Act
By Troutman Pepper Locke on
Posted in Product Liability, United States
On December 15, 2008, the United States Supreme Court held that state law fraud claims are not preempted by the federal Cigarette Labeling and Advertising Act, 15 U.S.C. §§ 1331-1341, (“Labeling Act”) or the Federal Trade Commission’s (“FTC”) policy on “light” cigarette advertising and sales.
Update: New York Releases Draft Proposal Of Amendments To Credit For Reinsurance From Unauthorized Insurers Regulations
By Troutman Pepper Locke on
On December 24, 2008, the New York State Insurance Department (“NYSID”) released a draft of its proposed amendments (the “Proposal”) to New York’s insurance regulations that authorize admitted insurers to receive credit for reinsurance ceded to unauthorized insurers.
FINRA Announces Details of Special Arbitration Procedure for Auction Rate Securities Consequential Damages
By Troutman Pepper Locke on
Each of the regulatory settlements to date with auction rate securities (“ARS”) issuers and brokers has included a provision requiring that the firm consent to a “special arbitration procedure” to deal with investors’ consequential damages relating to the sudden illiquidity of ARS. On December 16, 2008, the Financial Industry Regulatory Authority (“FINRA”) announced the details of this “special arbitration procedure.”
UK: FSA Releases Feedback Statement 08/7 on Transparency, Disclosure and Conflicts of Interest in the Commercial Insurance Market (Statement)
By Troutman Pepper Locke on
Posted in Regulatory, United Kingdom
The Statement issued by the FSA sets out its continued interest in improving transparency in the mediation of commercial general insurance and the management of conflicts of interest (click here to see the full statement).