With the 2008 Olympic Games set to begin in Beijing, China on Friday, August 8, the International Olympic Committee (“IOC”) has opted to purchase cancellation and abandonment insurance with policy limits of $415 million, more than double the policy limits for the last two Olympic Games combined. 

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Read More Beijing Olympics Protected With Record High-Limit Cancellation Insurance Policies

A recent Florida state court decision underscores the importance of accepting a policy limits demand on its precise terms. 

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Read More Placing Conditions on Settlement Payment Constitutes Counteroffer, Opening Door for Bad Faith Claim

As previously reported here, Florida Farm Bureau Insurance was seeking a state-wide, 28.4 percent average increase for its homeowners insurance policies. …
Read More Florida Insurance Commissioner Intends to Disapprove of Florida Farm Bureau’s Proposed Rate Hike

The English High Court provided directions to the liquidators of Whiteley Insurance Consultants (WIC), an insurance intermediary, on how to deal with claims in the liquidation made by creditors to whom insurance policies had been sold by WIC in circumstances where either WIC had no authority from the insurers to place the policies or the insurers did not exist. …
Read More UK: Guidance on the remedies under FSMA – In the matter of Whiteley Insurance Consultants (2008)

The City of Los Angeles recently filed two separate lawsuits in California state court concerning substantial losses it allegedly suffered as a result of municipal bonds it previously issued. …
Read More City of LA Files Two Lawsuits Over Municipal Bond Losses

The Supreme Court of Alabama recently reversed summary judgment in favor of an insurer on an “abnormal” bad faith claim, ruling that genuine issues of material fact existed as to whether the insurer failed to properly investigate the insured’s claim and failed to investigate the condition of the insured’s house prior to the hurricane that allegedly caused the damage. 

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Read More Supreme Court of Alabama: “Abnormal” Bad Faith Claim Improperly Dismissed

Tall Tree Insurance Company (“Tall Tree”) issued two excess liability insurance policies to Hewlett-Packard Company (“HP”). 

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Read More Follow the Fortunes Does Not Apply to a Cedent’s Theoretical Liability Under Reinsured Policies

McAfee’s suit against WilmerHale for allegedly improperly inflating its legal bills appears headed toward dismissal, further illuminating the hurdles that companies and D&O insurers face in resisting excessive defense bills. 

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Read More Impending McAfee Dismissal Illustrates Difficulties In Challenging Inflated Legal Fees

In a recent decision originating from the United States District Court for the Southern District of New York, on remand from the Second Circuit Court of Appeals, the court held that (i) there was no basis for finding that joint liquidators for a Bermuda insurer were deficient or engaged in any misconduct, or that their actions resulted in any prejudice to reinsurer Commercial Union and (ii) that vacating the underlying arbitration award and granting injunctive relief would confer an undeserved benefit on Commercial Union. …
Read More Federal Court Rules That Reinsurer Was Not Prejudiced By Redomestication of Insurer Carried Out Through Deceit