In Buckley Towers Condominium, Inc. v. QBE Ins. Co., No. 07-22988-CIV, 2008 WL 2645680 (S.D. Fla., Jun. 26, 2008), a Florida federal court found that financial or contractual documents between an insurer and its adjusting agent are not discoverable in a coverage action, but the agent may be deposed as to his knowledge of financial incentives, and such testimony may be admissible for impeachment purposes. …
Read More Florida District Court Disallows Production of Documents Regarding Agent’s “Loss Ratio Bonuses” But Holds That Plaintiff May Nevertheless Depose Agent for Impeachment Purposes

The FSMT has handed down its decision in the case of Asgar Ali Ravjani (trading as Astrad Finance) v Financial Services Authority, which involved the failure to disclose a discharged bankruptcy to the FSA. …
Read More UK: Decision of the Financial Services and Markets Tribunal (FSMT) Emphasises the Importance of Disclosing All Relevant Information to the FSA

The New York Attorney General recently announced that it had reached a settlement with Fidelity Investments regarding Fidelity’s involvement with auction rate securities (“ARS”).  The settlement, which calls for Fidelity to return $300 million to its customers by the end of the year, is the first settlement reached with a downstream retail broker. 

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Read More Fidelity Reaches Auction Rate Securities Settlement With New York Attorney General

Bank of America recently announced that it has reached a settlement with the Massachusetts Securities Division concerning its involvement in the Auction Rate Securities (“ARS”) market.  (Click here for Bank of America’s press release.) …
Read More Bank of America Reaches Auction Rate Securities Settlement with Massachusetts Securities Division

As reported on our blog earlier this week, the Governor of the Bank of England, Mervyn King, confirmed that the existing special liquidity scheme would end as planned on 21 October and be replaced by another scheme. …
Read More UK: Bank of England Extends Special Liquidity Scheme

In the wake of American International Group, Inc.’s (“AIG”) request for a $40 billion bridge loan from the Federal Reserve, New York Governor David Patterson has announced that AIG has been granted “special permission to access $20 billion of capital in its subsidiaries to free up liquidity.”  This will enable, in essence, AIG to make a bridge loan to itself. 

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Read More BREAKING NEWS: AIG Receives Special Permission to Access $20 Billion of Subsidiaries’ Capital

On 12 September 2008, Helen Clark attended the British Insurance Law Association (BILA) Annual Conference. The opening session was lead by the Law Commissioner, Mr David Hertzell, who is heading up the Law Commission’s wide scale review of Insurance Contract Law Reform. …
Read More UK Insurance Contract Law Reform: BILA Annual Conference at Lloyd’s

On September 9, 2008, Florida Insurance Commissioner Kevin McCarty ordered State Farm Florida to issue $120 million in credits or refunds to approximately 98,000 current or former policyholders who did not receive, or who did not apply for, Windstorm Loss Reduction Rating Plan discounts that were available to Windstorm policy holders who made their homes more windstorm resistant. 

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Read More Florida Insurance Commissioner Orders State Farm to Refund $120 Million for Unpaid Windstorm Mitigation Discounts

As an update to our previous post, Betty C. Baker has been named the acting commissioner of the Nevada Division of Insurance (the “Division”) following the retirement of Alice Molasky-Arman.  Prior to this appointment, Baker served as the Division’s chief insurance counsel since 1999. 

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Read More Betty C. Baker to Serve as Acting Nevada Insurance Commissioner