The head of Colombian financial regulator Superfinanciera, Cesar Prado Villegas, recently resigned in the wake of the collapse of pyramid schemes estimated to have swindled investors out of as much as $1 billion.  Roberto Borras, director of the finance ministry’s regulatory unit, has been named to replace Prado on an interim basis. 

…
Read More Colombian Financial Regulator Resigns In Wake Of Pyramid Scheme Collapses

In August, a group of cedents filed a petition to confirm an arbitration award (the “Final Award”) entered in their favor against their reinsurer, National Casualty Company.  National Casualty moved to dismiss the motion to confirm based upon lack of subject matter jurisdiction, arguing that the Final Award did not satisfy the amount in controversy requirement. …
Read More Federal Court Orders Arbitration Award To Be Sealed Temporarily

A California state appellate court recently ruled that a name-brand pharmaceutical manufacturer’s common-law duty of care in formulating product warnings extends to patients whose doctors foreseeably rely on such product information when prescribing a medication, even if the prescription is ultimately filled with a generic equivalent. 

…
Read More California State Appeals Court Holds that Brand-Name Pharmaceutical Manufacturers’ Duty to Use Due Care in Disseminating Product Warnings Extends to Patients Using Generic Equivalents

A federal district court in Pennsylvania recently held that two insurers are not obligated to contribute to the defense and indemnification of an insured sued for selling contaminated milk. …
Read More Federal Court Finds No Duty to Defend Against Claims of Fraudulent Reselling of Contaminated Milk

Last month, the Ohio Court of Appeals ruled that  injury caused by an insured’s mishandling of a homemade explosive device is not covered under a homeowners policy because the injury was “reasonably to be expected.” …
Read More Ohio Court Holds that Injuries Related to Potato Gun Not Covered by Homeowners Policy

In Amway Asia Pacific Ltd. v. Those Certain Underwriters at Lloyd’s London, No. 1:07-CV-1277 (W.D. Mich. Oct. 27, 2008), a federal district court in Michigan granted the primary insurer’s motion to dismiss a declaratory judgment action on the ground that the plaintiff failed to serve copies of the summons and complaint on the proper agent for service of process. …
Read More Improper Service Leads to Dismissal of D&O Coverage Action

In a survey of reinsurers’ statutory underwriting results conducted by the Reinsurance Association of America (RAA), a group of 20 U. S. property‑casualty reinsurers wrote $19.0 billion of net premiums during the nine-months ended September 30, 2008, an increase of $1.1 billion from the same period in 2007. 

…
Read More RAA Releases Nine-Months 2008 Underwriting Results

In Whole Enchilada Inc. v. Travelers Property Casualty Co., No. 07-1533, 2008 WL 4442061 (W.D. Pa. Sept. 29, 2008), Pennsylvania U.S. District Judge Nora Barry Fischer ruled that Whole Enchilada’s two commercial general liability policies issued by Travelers Property Casualty Co. does not cover a class action lawsuit brought against it for printing too much credit card information on customers’ receipts in violation of federal law. …
Read More Court Rules that Policy Does Not Cover Advertising or Personal Injury Arising from Restaurant’s Failure to Comply with Credit Card Privacy Laws

On November 21, the New York Insurance Department (the “NYID”) issued Circular Letter No. 27 (the “Circular Letter”), “Recognition in New York of Marriages Between Same-Sex Partners Legally Performed in Other Jurisdictions.”  The Circular Letter requires insurers to treat all couples in New York, including same-sex couples who were legally married outside of New York, equally. 

…
Read More New York Insurance Department: Insurers Must Treat All Married Same-Sex Couples Equally

Last month, the United States Securities and Exchange Commission (“SEC”) issued a release (“Release”) setting forth a roadmap (“Roadmap”) for the potential use by U.S. issuers of financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, rather than statements prepared in accordance with U.S. GAAP accounting standards. 

…
Read More SEC Proposes Roadmap for the use of International Financial Reporting Standards