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

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. 

…
Read More Navigant Report Shows Continuing Surge In Subprime Related Litigation

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. 

…
Read More GAO Report on Federally Funded Research of the Environmental, Health and Safety Risks of Nanoscale Materials

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. 

…
Read More New York Appellate Division Affirms Narrow Interpretation of “Insured v. Insured” Exclusion in Not-for-Profit D&O Policy

The Minnesota Supreme Court recently affirmed the transfer of an insurance coverage action to a group of Minnesota judges specially assigned to hear asbestos cases.  In re Continental Cas. Co. v. 3M Co., Docket No. A07-784 (Minn., May 29, 2008). 

…
Read More Minnesota High Court Approves Transfer of Coverage Dispute to Asbestos Judges

On June 25, 2008, the U.S. House of Representatives passed the ADA Amendments Act  (the “Act”) by a margin of 402-17.  The purpose of the Act is to reject court decisions that have narrowed the scope and protection for people with disabilities under the American with Disabilities Act (“ADA”) and restore its original Congressional intent. 

…
Read More House Passes ADA Amendment

A New York based radiology practice (the “Plaintiff”) filed an action in the United States District Court for the Eastern District of New York against a benefits administration firm, CareCore National, LLC, that provides services for insurers including Aetna, GHI, HIP, Healthnet, Healthfirst, and Oxford. 

…
Read More New York Radiology Practice Sues Health Care Benefits Administration Firm Contracted With Major Health Care Insurers Alleging Antitrust Violations

In the June edition of Insurance and Reinsurance Review, we reported on the current status of implementation of the Reinsurance Directive across the European Union (the article can be found here. At the time, we reported that Portugal had not yet commenced its public consultation. That consultation has now been commenced, and is open until 8 July 2008. 

…
Read More EU: Portugal Consults on the Implementation of the Reinsurance Directive

BIBA has formally responded to the FSA’s DP on transparency, disclosure and conflicts of interest in the commercial insurance market (See: BIBA press release). 

…
Read More UK: The British Insurance Brokers’ Association (BIBA) Has Responded to the FSA’s Discussion Paper (DP) on Transparency

For the second time in just over a year, both houses of the New York Legislature passed a bill that would reverse New York’s longstanding “no-prejudice” rule.  Senate Bill 8610 and Assembly Bill 11541 (the “Bill”) prohibits insurers from denying a claim based on late notice unless the insurer can show that it was prejudiced by the untimely notice. …
Read More NY Legislature Passes Late Notice Bill Reversing Longstanding “No-Prejudice” Rule