Last Friday, a Texas state appeals court ruled that the Texas Department of Insurance (“TDI”) was not empowered to issue a disciplinary order against State Farm Lloyds in connection with a dispute between the parties relating to the insurer’s rates.  The appellate decision is the latest development in a clash between the parties that began in 2003 with the passage of a law requiring insurance companies in Texas to file their rates with the TDI for review. 

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Read More State Farm Wins Appeal in Rate Dispute

The U.S. Court of Appeals for the Eighth Circuit recently affirmed a lower court decision that held that an insurer has no duty to indemnify its insured under a liability policy for damages arising out of an alleged sexual assault. 

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Read More Eighth Circuit: Insurer Has No Duty to Defend or Indemnify its Insured for Damages Arising Out of a Sexual Assault

The FSA has fined LVBS for regulatory failings in the sales processes for PPI policies. (See: Final Notice and  Press Release)  The penalty was imposed in respect of PPI offered to customers who telephoned LVBS seeking unsecured personal loans between 14 January 2005 and 8 August 2007. …
Read More UK: Financial Services Authority (FSA) Fines Liverpool Victoria Banking Services Limited (LVBS) £840,000 for Regulatory Failings in the Sale of Payment Protection Insurance (PPI) Policies

Today, Thursday, August 28, Edwards Angell Palmer & Dodge’s Insurance and Reinsurance Department will host a webinar entitled “Insurance Implications of Climate Change”. This 60 minute webinar will comprise a discussion of the global legal framework which recognizes the reality of climate change. 

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Read More TODAY’S WEBINAR: Insurance Implications of Climate Change

The First Circuit Court of Appeals recently held that, under Puerto Rico law, a breach of warranty excuses a maritime insurer from paying a claim regardless of whether the breach has any causal connection to the loss at issue.  Lloyd’s of London, et al. v. Pagan-Sanchez, et al., No.
Read More First Circuit Addresses Puerto Rico Law on Impact of Insured’s Breach of Warranty

On October 7, 2008, the New York Insurance Department and New York Department of Health will be holding a joint meeting to address out-of-network insurance coverage.  The hearing will be held in response to numerous consumer complaints regarding bills from specialists whom the consumers did not know were out-of-network. 

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Read More New York to Hold Joint Hearing on Out-of-Network Coverage

Reports indicate that state and federal regulators are now turning their attention to Fidelity’s and Schwab’s participation in the Auction Rate Securities (ARS) market. 

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Read More Regulators Probing Fidelity’s and Schwab’s Involvement in Auction Rate Securities Issues

The Federal District Court for the District of Puerto Rico recently issued a 58-page decision on post-trial motions in which it extensively discussed Puerto Rico law concerning insurer bad faith and consequential damages in the context of an alleged bad faith denial of coverage. …
Read More Puerto Rico Federal Court Examines Issues of Bad Faith (“Dolo”) and Consequential Damages in Insurance Coverage Disputes

On 22 August 2008, Aon Corporation (Aon) and Benfield Group Limited (Benfield) announced that the boards of both companies had unanimously approved an agreement under which Aon will acquire Benfield for £3.50 per share in cash and assume approximately £91 million of Benfield’s net debt, representing an enterprise value of £935 million ($1.75 billion) on a fully diluted basis. …
Read More UK/US: Aon to Acquire Benfield Group Limited

The provisions of the Act are coming into force in stages, with all provisions expected to be in force by 1 October 2009. GC100 has published an information pack to help companies prepare for the requirements of the Act that will come into force on 1 October 2008. Changes coming into effect on 1 October 2008 include: the introduction of new statutory duties for directors in relation to conflicts of interest; the abolition of the financial assistance prohibition for private companies; and the introduction of a new capital reduction procedure for private companies. …
Read More UK: The Association for General Counsel (GC100) Publishes Pack on Directors’ Conflicts of Interest to Help Companies Prepare for the Requirements of the Companies Act 2006 (the Act)