The New York Court of Appeals denied a motion for rehearing in the Bi-Economy Market, Inc. v. Harleysville Insurance Company of New York case, thereby leaving intact its February 2008 decision allowing insureds  to recover “consequential damages” for improper denial of coverage.  The Court’s denial was made without comment. 

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Read More New York Court of Appeals Denies Motion for Rehearing Regarding Award of Consequential Damages for Bad Faith Breach of Insurance Contract

On June 26, 2008, U.S. Senator Frank Lautenberg (D-NJ) reintroduced a measure intended to ensure that children have access to healthcare.  The measure was inserted into the Fiscal Year 2009 Labor-Health and Human Services-Education Appropriations bill (the “Bill”). …
Read More Lautenberg Reintroduces Measure to Keep New Jersey Children Covered by Health Insurance

The Florida Supreme Court has provided an answer to a question important to insurers that have issued policies under Florida’s surplus lines laws.  In Essex Ins. Co. v. Zota, Case No. SC06-2031 (June 26, 2008), the Court considered numerous questions certified from the U.S. Court of Appeals for the 11th Circuit. …
Read More Florida Supreme Court – Surplus Lines Policies Are Subject to Chapter 627, Florida Statutes

Last week, the National Association of Insurance Commissioners (“NAIC”) pledged its support for the Holocaust Insurance Accountability Act of 2008 (“Accountability Act”), which would institute mechanisms for Holocaust-era insurance claims.  The proposed legislation is intended to assist Holocaust survivors and their heirs with insurance claims that are complicated because of missing death certifications and/or non-existent physical copies of policies that were confiscated by the Nazis or lost in the Holocaust. 

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Read More NAIC Pledges Support to Holocaust Insurance Act

A New York federal court recently found that a lawsuit commenced by two insurance companies in run-off, Seaton Insurance Company and Stonewall Insurance Company, against their run-off manager, defendant Cavell USA Inc. and its principal, Ken Randall, was subject to the exclusive jurisdiction of the English courts, granting defendants’ motion to dismiss on that basis. …
Read More New York Federal Court Enforces Forum Selection Clause, Grant’s Run-off Administrator’s Motion to Dismiss

In Bedfordshire Police Authority (BPA) v. David Constable (sued on his own behalf and on behalf of all other members of Syndicate 386 at Lloyd’s) (the Syndicate) [2008] EWHC 1375, BPA sought a declaration that the Syndicate be liable to indemnify it in respect of BPA’s potential liability under the Riot (Damages) Act 1886. …
Read More UK: Court Considers Meaning of “Damages”

A Pennsylvania state court has reportedly ruled, in an unpublished opinion, that the Pennsylvania Insurance Commissioner may pursue a theory of damages against the accountant of an insolvent insurer based on a legal claim of “deepening insolvency.” …
Read More Pennsylvania State Court Permits Plaintiff to Pursue “Deepening Insolvency” Theory of Damages

Last week we reported that Portugal has issued a consultation paper on the implementation of the EU Reinsurance Directive (see the post here). The transposition deadline was 10 December 2007.  Portugal is one of four member states to receive a letter of formal notice from the Commission in relation to its failure to implement the Directive, the others being the Czech Republic, the Netherlands and Poland. …
Read More EU: Commission Takes Action Against 4 Member States for Failure to Implement the Reinsurance Directive

AT&T Wireless Services, Inc. (“AWS”) recently filed a noteworthy reply brief in an ongoing D&O insurance coverage dispute between an AIG subsidiary and AWS over coverage for payments made by an acquirer on behalf of the acquiree’s directors and officers. 

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Read More AT&T Wireless Appeal Seeks Reversal of Lower Court Ruling Denying D&O Coverage for $47 Million Settlement Payment