On Tuesday Lloyd’s underwriters along with Zurich Specialties London Ltd commenced proceedings in New York against class action specialists Milberg LLP. Insurers are seeking to rescind certain professional liability insurance policies issued to Milberg’s predecessor firms based on material mispresentations made by the Milberg firm. …
Read More London Insurers Sue Milberg LLP

In a suit brought by an additional insured seeking a declaratory judgment that an insurer had a duty to defend it in an underlying liability lawsuit, the Fifth Circuit reversed a Texas district court’s award of summary judgment in favor of the insurer and held that the insurer had a duty to defend the additional insured under the Texas “eight corners” rule. …
Read More Fifth Circuit Examines Duty to Defend Additional Insured Under Texas Law

A Washington state appeals court recently ruled that an insured’s self-insured retention is not primary insurance for purposes of subrogation, and that the insured was therefore entitled to apply settlement amounts it received to its own defense costs prior to the insurer recovering any of the settlement funds. 

…
Read More Washington Appeals Court: Self-Insured Retention Not “Insurance” for Purposes of Subrogation

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. 

…
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. 

…
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. 

…
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. 

…
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. 

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