The Canadian federal government has charged a panel of experts with investigating possibilities for significant securities regulation reform.  Notably, the panel has been asked to “develop a model common securities act,” according to a press release issued by the Honourable Jim Flaherty, the Canadian Minister of Finance. 

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Read More Canada Considers Nationwide Securities Regulation Reform

As previously reported here, on September 10, 2007,  the New Jersey legislature enacted P.L. 2007, c. 163 (S-1666/A-3038), which banned the use of step-down provisions.  Step-down provisions were included in motor vehicle liability insurance policies issued to businesses and implicated when an employee is not a “named insured” on the policy. 

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Read More Effective Date of New Jersey Ban on Step-Down Provisions

Since the Spitzer enquiries into broker commissions in the US in 2004/5, the issues of whether to make commission dislcosure mandatory and whether further regulation is required in respect of conflicts of interest have never really been far from the Financial Services Authority’s (FSA) radar. The market strived to find a solution that would deter the FSA from introducing yet more regulation but has failed, thus far, to find a commonly accepted solution as market views are polarised. …
Read More UK: Could Mandatory Disclosure of Broker Commissions be on the Cards?

Oregon’s highest court recently found that a $20.7 million dollar punitive damages award in an insurance bad faith case, which was approximately sixteen times the actual damages awarded in the case, was excessive and likely unconstitutional. 

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Read More Oregon Supreme Court: Punitive Damages in Insurance Bad Faith Case Limited to Four Times Actual Damages

A Massachusetts state trial court recently ruled that, even though an insured’s contractual coverage claim against its insurer was time-barred, its claim for insurer bad faith could proceed under a separate statutory limitations period. 

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Read More Massachusetts State Court: Insured May Proceed With Bad Faith Claim Even Though Statute of Limitations On Breach of Contract Claim Has Run

A California federal court recently dismissed breach of contract and bad faith claims based upon certain excess insurers’ failure to fund a purportedly reasonable settlement, holding that an excess judgment or settlement is a prerequisite to such a claim. 

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Read More California Federal Court: Bad Faith and Breach of Duty to Settle Claim Against Excess Insurers Not Ripe Until Final Settlement Reached or Judgment Entered In Excess of Primary Policy Limits

On March 18, 2008, Stephanie Jensen, Brocade’s former Human Resources Director, was sentenced to four months in prison and three months in a halfway house and ordered to pay a $1.25 million fine based upon her December 2007 conviction on charges of conspiracy and falsifying corporate records related to stock option backdating. 

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Read More Brocade: Former Human Resources Director Sentenced On Backdating-Related Conviction

In a recent decision (click here), New York’s highest court weighed in on a long-standing debate over an insurance policy’s requirement that insureds obtain their insurers’ consent before settling a claim made against an insured. …
Read More Insured’s Breach of Consent Provision Precludes Coverage for Settlement

The Financial Services Authority (FSA) has published a new guidance note entitled ICOBS at a glance. This brief document highlights the new conduct of business rules for insurers and provides a brief summary of the main requirements of the new Insurance: Conduct of Business sourcebook (ICOBS), with the aim of assisting insurance companies and intermediaries in the UK, who have 3 months left in which to ensure that their processes and policies meet the new standards. …
Read More ICOBS at a Glance: Highlights of the New Rules