On 23 May 2008, the European Commission issued a consultation paper (CP) on amendments to the decisions establishing the three Lamfalussy Level Three committees (See: Consultation Paper). HM Treasury and the FSA have now jointly responded to the CP. The response was also agreed with the Bank of England and the Pensions Regulator (Response). (See: Joint FSA and HMT response and Joint letter to Commissioner). …
Read More UK: Response to European Commission consultation on the responsibilities of the European insurance supervisors’ committee (CEIOPS)

Last month, the New York State Insurance Department (the “Department”) held a public hearing in New York City to explore the possibility of expanding the Excess Lines Export List (the “Export List”).  The Export List is a compilation of risks or coverages that may be placed by surplus lines brokers without compliance with the three declinations rule. …
Read More Agents and Brokers Urge Expansion of New York Excess Lines Export List

On 17 July in Equitas Limited v Allstate Insurance Company [2008] EWHC 1671 Mr Justice Beatson handed down his decision on whether Allstate was entitled to a stay of the instant proceedings initiated by Equitas in March 2008. 

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Read More UK: Court Considers Application for Stay in Favour of Texas Arbitration

AXA has commenced legal proceedings against 78 law firms in England and Wales in order to recover losses associated with after-the-event (ATE) insurance policies taken out on claims it believes were not properly vetted. The sums sought are stated to be in the region of £60million. 

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Read More UK: AXA Commences Legal Proceedings to Recover ATE Losses

The New York Attorney General filed a civil complaint yesterday against UBS Securities LLC and UBS Financial Services, Inc. alleging that UBS “committed a multi-billion dollar consumer and securities fraud on the investing public by falsely selling securities facing mounting liquidity risk as cash equivalents.” 

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Read More NY Attorney General Files Auction Rate Securities Complaint Against UBS

The Ninth Circuit federal court of appeals recently held that the Class Action Fairness Act of 2005 (CAFA), which permits in general the removal to federal court of high-dollar class actions involving diverse parties, does not supersede section 22(a)’s specific bar against removal of cases arising under the Securities Act of 1933 (’33 Act). 

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Read More Ninth Circuit: CAFA Does Not Override Anti-Removal Provision of Securities Act of 1933 in Subprime Class Action

The Delaware Superior Court recently held that a fraud exclusion in a D&O policy did not bar coverage arising out of a stockholder litigation because the settlement of litigation did not constitute an adjudication of fraud as required to trigger the fraud exclusion. 

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Read More Delaware Superior Court: Settlement of An Action is Not An Adjudication For Purposes of Applying Fraud Exclusion in D&O Policy

The California Court of Appeals recently affirmed a decision granting State Farm’s special motion to strike a claim in a case involving alleged misrepresentations during a personal injury case.  Click here to view the unpublished decision.

Appellants were tenants in a home belonging to Jeane and Edward Dunne (the

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Read More California Court of Appeals Affirms Decision for State Farm in Misrepresentation Suit

On July 15, 2008, the Arbitration Fairness Act of 2007, H.R. 3010 (the “Act”), which was originally introduced on July 12, 2007, was approved by the House of Representatives Subcommittee on Commercial and Administrative Law. 

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Read More Arbitration Fairness Act of 2007 Approved by House Subcommittee

Maldonado v. First Liberty Ins. Corp., 546 F. Supp. 2d 1347 (S.D. Fla. 2008), arose from an auto accident in which the insured’s wife collided with the father of three small children, causing his death  As soon as it became aware of the accident, the insurer notified the insured that “the nature and extent of the damages and injuries being claimed suggests there is a potential exposure in excess of your policy limits. . . .” 

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Read More Bad Faith – Florida District Court Grants Summary Judgment in Favor of Insurer