The United States Court of Appeals for the Tenth Circuit recently held that general liability insurance policies that provide coverage for injuries caused by acts or omission in providing “professional services” do not trigger a duty to defend or indemnify claims for false billing. …
Read More False Billing Claims Are Not Covered “Professional Services” Under General Liability Policies

While Congressional leaders continue to negotiate the terms of a bailout plan to relieve mortgage lenders and investment banks of their distressed mortgage debt, a shareholder derivative action has been filed against PFBB Bancorp (“PFBB”) and several of its directors and officers in the Delaware Chancery Court to enjoin a proposed merger between PFBB and FBOP Bancorp (“FBOP”). A copy of the complaint, filed on September 22, 2008, can be found by clicking here. 

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Read More Proposed $700 Billion Bailout Plan Sparks Shareholder Derivative Action

As we previously reported here, on September 16, 2008 the Federal Reserve Bank of New York (“Federal Reserve”) agreed to issue American International Group, Inc. (“AIG”) a two year, $85 Billion secured revolving credit facility.  On September 23, 2008 AIG announced it signed a definitive agreement with the Federal Reserve with respect to such credit facility. 

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Read More UPDATE: AIG Signs Definitive Agreement with Federal Reserve

Recently, the Delaware Superior Court, in a case entitled HLTH Corp. v. AESIC, C.A. No. 07C-09-102 RRC, declined to follow the holdings of Qualcomm, Inc. v. Certain Underwriters At Lloyd’s, 161 Cal.App.4th 184 (4th Dist. 2008) and Comerica Inc. v. Zurich American Ins. Co., 498 F.Supp.2d 1019 (E.D. Mich. 2007) on the following issue:  where an insured settles with a primary insurer and/or certain underlying excess insurers for less than the full limits of liability of those policies, what are an excess insurer’s obligations to its insured? …
Read More Delaware Court Weighs In on Fill the Gap Issue; Declines to Follow Qualcomm and Comerica

The options backdating-related shareholder derivative action against several current and former board members of Glenayre Technologies Inc., settled for certain corporate governance changes at the company and the defendants’ agreement not to challenge a plaintiff’s counsel fee award request of $775,000. …
Read More NY Court Rejects Plaintiff’s Counsel’s Fee Award in Settlement of Options Backdating Shareholder Derivative Action

This blog updates our September 24, 2008 posting.

The NAIC Financial Condition (E) Committee voted to adopt the reinsurance modernization and collateral proposal (the “Proposal”), which was approved by the Reinsurance Task Force earlier this week. 

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Read More NAIC Financial Condition (E) Committee Approves Reinsurance Modernization Proposal

President Bush and Congress came to terms this weekend on the $700 billion bailout bill designed to aid the struggling U.S. economy.  It is expected that the House of Representatives will vote on the “Emergency Economic Stabilization Act of 2008” (the “Act”) today, with the Senate to follow

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Read More BREAKING NEWS: Bailout Bill Terms Finalized, Congress Expected to Vote Today

Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department will host a webinar on the above topic on Monday, September 29, 2008 at 12:00 PM EDT / 5:00 PM BST. …
Read More Edwards Angell Palmer & Dodge Webinar: ‘Mortgage-Backed and Auction-Rate Securities: Structure, Litigation and Insurance Issues’

On September 16, 2008, the Florida Office of Insurance Regulation (OIR) announced that, in its capacity as the Financial Services Commission, the Florida Cabinet approved a rule permitting approved, unaccredited reinsurance companies to conduct business in Florida without posting 100% collateral. 

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Read More Florida Relaxes Collateral Rules for Unaccredited Reinsurers

“Given the turbulence affecting the financial services industry these days—including recent announcements concerning Lehman Brothers—you may be wondering what would happen to your securities account if your brokerage firm closed its doors.” 

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Read More FINRA Publishes Release Entitled “If a Brokerage Firm Closes Its Doors”