The FSA has published an update on firms’ progress toward meeting the December 2008 deadline of the Treating Customers Fairly initiative (TCF). The initiative is part of the FSA’s move towards principles based regulation and seeks to encourage firms to change their behaviour toward customers. …
Read More UK: FSA Update on Firms’ Progress Towards Achieving the Outcomes of Treating Customers Fairly

The United States Court of Appeals for the Second Circuit recently dismissed a securities class action against Dynex Capital Inc. (“Dynex”) and its subsidiary, Merit Securities Corp. (“Merit”), because the plaintiff had failed to allege the requisite scienter. …
Read More Second Circuit: Dismissal of Claims Against Individual Defendants for Failure to Plead Scienter Does Not Preclude Claims Against Corporate Defendants

On 3 July 2008 Helen Clark attended the Institute of International Shipping & Trade Law Symposium on the prospective reform of marine and commercial insurance held at Lloyd’s. The Symposium provided an opportunity for further debate of the Law Commission’s proposals (contained in Consultation Paper 1) for the reform of English law on misrepresentation and non-disclosure, breach of warranty and the role of intermediaries pre-contract, with an emphasis upon business rather than consumer insurance. 

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Read More UK Insurance Contract Law Reform: Lloyd’s/Institute of International Shipping & Trade Law Symposium

A California state court of appeals recently held that an insurer properly denied coverage after its insured failed to timely report a “claim” after receiving a demand letter. 

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Read More California State Court of Appeal Holds That Demand Letter Was A “Claim” That The Insured Was Required To Report Under Its Insurance Policy

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