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 Appeal Seeks Reversal of Lower Court Ruling Denying D&O Coverage for $47 Million Settlement Payment
By Troutman Pepper Locke on
Posted in D&O Liability, United States
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.
Connecticut In-House Counsel Not Licensed in Connecticut Must Register By June 30, 2008!
By Troutman Pepper Locke on
Posted in Connecticut Developments, United States
If you are in-house counsel for a corporation in Connecticut, but are not licensed in Connecticut, please read this! Failure to comply with Connecticut Practice Book section 15A could result in an enforcement action for unauthorized practice of law. …
Read More Connecticut In-House Counsel Not Licensed in Connecticut Must Register By June 30, 2008!
Allstate Suspension Stands – Florida Supreme Court Denies Jurisdiction
By Troutman Pepper Locke on
The Florida Supreme Court has refused to weigh in on the ongoing clash between the Florida Office of Insurance Regulation (OIR) and Allstate. As reported here, here, and here, Florida Insurance Commissioner Kevin McCarty served subpoenas on Allstate, seeking internal documents concerning its reinsurance program. When Allstate failed to comply with the subpoenas, the OIR suspended the rights of Allstate companies to issue new policies in Florida.
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Read More Allstate Suspension Stands – Florida Supreme Court Denies Jurisdiction
Florida Bad Faith – Federal District Court Finds That Policyholder Failed To Sufficiently Plead Punitive Damages Claim
In 316, Inc. v. Md. Cas. Co., Case No. 3:07cv528-RS-MD (N.D. Fla. May 21, 2008), an insured, whose commercial building had been damaged by Hurricane Ivan, alleged that its insurer acted in bad faith by refusing to pay for the damages. …
Read More Florida Bad Faith – Federal District Court Finds That Policyholder Failed To Sufficiently Plead Punitive Damages Claim
Municipal Bond Fairness Act Introduced
By Troutman Pepper Locke on
Posted in Subprime/Credit Crisis Developments, United States
Representative Barney Frank, D-Mass., introduced a bill on June 19 that would place increased regulatory scrutiny on bond insurers and require one rating standard for both municipal and corporate bonds. The Municipal Bond Fairness Act, as the legislation is named, would require municipal bond insurers to submit information about their operations, including their financial soundness, risk management and underwriting standards in an effort to prevent the type of exposure currently faced by the monoline bond insurers as a result of the subprime credit crunch of the last 12 months.
MBIA and Ambac Downgraded by Moody’s
By Troutman Pepper Locke on
Posted in Subprime/Credit Crisis Developments, United States
On June 19, Moody’s Investors Service removed the triple-A financial strength rating for bond insurers MBIA Insurance Corp. and Ambac Assurance Corp., downgrading both companies in response to their continued exposure to the struggling mortgage market. MBIA was downgraded from Aaa to A2, while Ambac was downgraded from Aaa to Aa3. …
Read More MBIA and Ambac Downgraded by Moody’s
Navigant Report Shows Continuing Surge In Subprime Related Litigation
By Troutman Pepper Locke on
A report issued recently by Navigant Consulting, Inc. shows a surge in subprime related litigation for the first quarter of 2008, significantly outpacing the number of filings from the second half of last year.
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Read More Navigant Report Shows Continuing Surge In Subprime Related Litigation
GAO Report on Federally Funded Research of the Environmental, Health and Safety Risks of Nanoscale Materials
By Troutman Pepper Locke on
Posted in Product Liability, United States
In our continuing coverage of emerging product liability issues related to carbon nanotubes, which was first reported here, we focus on the U.S. government’s call for stricter monitoring of health risks arising from the production and use of this new technology.
New York Appellate Division Affirms Narrow Interpretation of “Insured v. Insured” Exclusion in Not-for-Profit D&O Policy
By Troutman Pepper Locke on
A New York state intermediate appeals court recently upheld the “plain meaning” of a so-called “insured v. insured” exclusion contained in a not-for-profit directors and officers liability policy, but narrowly construed the exclusion.