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

The first shareholder action to surface in the wake of the momentous sale of Bear Sterns & Co. Inc. to J.P. Morgan Chase & Co. was filed yesterday in the U.S. District Court for the Southern District of New York.  The complaint names as defendants Bear Stearns and certain of its officers and directors, and charges them with violations of the Securities Exchange Act of 1934. 

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Read More Bear Stearns Sale Sparks First Shareholder Action

On March 7, 2008 the Internal Revenue Service (“IRS”) issued Revenue Ruling 2008-15 which clarifies the U.S. tax consequences when a foreign insurer enters into a reinsurance agreement with another foreign insurer. 

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Read More IRS Launches Voluntary Compliance FET Initiative for Certain Foreign Insurers

Brit Syndicates Ltd v Grant Thornton International UKHL 18 concerned an appeal by the insured, GTI, against a Court of Appeal decision in favour of its insurers. …
Read More The UK House of Lords has overturned a Court of Appeal decision as to whether the avoidance of a composite policy in respect of one party negates another party’s cover

As we have reported previously, the English and Scottish Law Commissions are currently undertaking a wide ranging review of insurance contract law. 

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Read More British Insurance Law Association hosts lecture on insurance contract law reform