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).
Supreme Judicial Court Holds That Claims Against Limo Service for Allowing Drunken Passenger to Drive Home “Arose Out of” Use of Automobile under Auto Policy
By Troutman Pepper Locke on
The Supreme Judicial Court of Massachusetts recently held that claims against a livery service for negligently dropping off a drunken passenger in a location where he was likely to drive home “arose out of” the use of the livery service’s van, as the term “arise out of” is broadly interpreted in construing the scope of coverage under auto policies. …
Read More Supreme Judicial Court Holds That Claims Against Limo Service for Allowing Drunken Passenger to Drive Home “Arose Out of” Use of Automobile under Auto Policy
Ninth Circuit Dismisses Securities Fraud Claim For Failing To Plead Individual Scienter
By Troutman Pepper Locke on
Posted in D&O Liability, United States
The Ninth Circuit Court of Appeals recently dismissed a securities fraud claim for failure to plead individual scienter with sufficient particularity. …
Read More Ninth Circuit Dismisses Securities Fraud Claim For Failing To Plead Individual Scienter
Florida Office of Insurance Regulation to Issue Final Order on State Farm Rate Request
By Troutman Pepper Locke on
The Florida Office of Insurance Regulation (“OIR”) recently announced that Administrative Law Judge Daniel Manry of the Division of Administrative Hearings issued a Recommended Order on December 12, 2008 denying State Farm’s statewide homeowner’s insurance rate request. …
Read More Florida Office of Insurance Regulation to Issue Final Order on State Farm Rate Request
Costa Rica Roundup: Mexican Auto Insurer Expresses Interest in Market; Tourism Concerns and New Foreign Investment
By Troutman Pepper Locke on
Qualitas, Mexico’s largest automobile insurer, has reportedly indicated that it is considering expanding its operations into Costa Rica and Panama. The announcement comes on the heels of Qualitas’ entry into the insurance market in El Salvador at the beginning of December. Referring to the more than year and a half it took for Qualitas to obtain authorization in El Salvador, company CFO Wilfrido Castillo reportedly commented that the company hopes authorization would come more quickly in Panama and Costa Rica.
Massachusetts Federal Court Finds Retroactive Date Bars Coverage Despite Plaintiff’s “Continuing Scheme” Theory
The United States District Court for the District of Massachusetts recently held that an insurer had no duty to defend or indemnify its insureds where the insureds’ claims “arose out of” acts that occurred prior to the policy’s retroactive date.