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

The Connecticut Supreme Court recently reversed a lower court decision and held that the failure to charge a jury on an insurer’s special defense of late notice was harmful error. 

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Read More Connecticut Supreme Court: Failure to Submit Insurer’s Special Defense of Late Notice to Jury was Harmful Error

UBS has agreed to pay $4.4 million in return for a consent judgment resolving the Massachusetts Attorney General’s investigation of UBS’s sales of auction rate securities (ARS) to Massachusetts municipalities and state agencies. 

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Read More UBS Settles Auction Rate Securities Claims By Massachusetts Attorney General for $4.4 Million

Midwest Employers Casualty Company (“MECC”) filed suit against Legion Insurance Company in the United States District Court for the Eastern District of Missouri seeking a declaration with respect to its liability under forty-three reinsurance contracts issued to Legion. 

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Read More Insolvent Insurer Ordered to Produce Documents Related to its Reinsurance