Under recently-enacted legislation, New York State has switched to a loss cost system for determining workers’ compensation rates. The New York Compensation Insurance Rating Board (“NYCIRB”) has been tasked with developing loss cost values, and each insurer will submit its own loss cost multiplier to the New York State Insurance Department (the “Department”) for approval.
Read More New York Adopts Loss Cost System For Setting Workers’ Compensation Rates
Bond Insurers – Bailout on the Way?
As the credit crunch of the subprime meltdown continues, a recent question has been whether a government or private bailout of the troubled bond insurers is on the way. While early reactions were positive, recent events seem to indicate that a bailout by state and federal regulators or private industry is getting more unlikely by the day. …
Read More Bond Insurers – Bailout on the Way?
Alabama Proposes Increases to Auto Insurance Minimums
By Troutman Pepper Locke on
Posted in Regulatory, United States
The Alabama Senate has voted 33-0 to raise the minimum auto liability insurance requirements for resident motorists. The current law requires motorists to carry $20,000 in coverage for the injury or death of one person, $40,000 for multiple injuries or deaths, and $10,000 in coverage for property damage. …
Read More Alabama Proposes Increases to Auto Insurance Minimums
Bond Insurer Discloses Receipt of Wells Notice from U.S. Securities and Exchange Commission Related to Antitrust Investigation
By Troutman Pepper Locke on
Posted in Antitrust, United States
Financial Security Assurance Holdings Ltd.’s (“FSA”) bond insurance unit reported in an 8-K filed February 4, 2008, that the U.S. Securities and Exchange Commission (the “SEC”) may bring a complaint against the company as part of an investigation into whether bids were rigged on investment contracts with local governments.
Georgetown University Research Professor Mila Kofman Appointed as Maine Insurance Chief
By Troutman Pepper Locke on
Posted in Industry Developments, United States
Maine Governor John E. Baldacci has nominated Mila Kofman as the Superintendent of the Maine Bureau of Insurance. …
Read More Georgetown University Research Professor Mila Kofman Appointed as Maine Insurance Chief
The English High Court Recently Considered the Evidence Required From an Insurer in Order to Prove its Allegation of Fraud on the Part of its Insured
By Troutman Pepper Locke on
Posted in Coverage & Claims, United Kingdom
In Patel v Windsor Life Assurance Company Ltd [2008] EWHC 76, the claimant beneficiary sought to enforce his interest in a life insurance policy against the defendant insurer following the alleged death of the insured.
Health Insurers’ Motion to Treble Damages Against Pharmaceutical Companies in Antitrust Case is Granted
By Troutman Pepper Locke on
On June 1, 2005, after a jury trial lasting over three weeks, a jury found for Blue Cross Blue Shield of Massachusetts (“BCBS-MA”), Blue Cross Blue Shield of Minnesota (“BCBS-MN”), Federated Mutual Insurance Company (“Federated”), and Health Care Service Corporation (“HCSC”) (collectively “Plaintiffs”) against Mylan Laboratories Inc. and Mylan Pharmaceuticals Inc., Cambrex Corporation, and Gyma Laboratories (“Defendants”) on state law claims – agreement in unreasonable restraint of trade; conspiracy in unreasonable restraint of trade; monopolization; and, attempted monopolization – in the Lorazepam active pharmaceutical ingredient (“API”) market, Lorazepam tablet market and in the Clorazepate API and tablet markets. The jury awarded BCBS-MA $8,430,887, BCBS-MN $1,756,096, Federated $410,878.00, and HCSC $1,448,437.00 in damages. …
Read More Health Insurers’ Motion to Treble Damages Against Pharmaceutical Companies in Antitrust Case is Granted
Florida Supreme Court Rules that Cost of Repairing or Replacing Subcontractor’s Defective Work Is not “Property Damage” Under CGL Policy
By Troutman Pepper Locke on
In Auto-Owners Ins. Co. v. Pozzi Window Co., No. SC06-779 (Fla. Dec. 20, 2007), the Florida Supreme Court, in response to the U.S. Court of Appeals for the Eleventh Circuit, answered the following certified question in the negative:
DOES A STANDARD FORM [COMMERCIAL] GENERAL LIABILITY POLICY WITH PRODUCT[S] COMPLETED OPERATION HAZARD COVERAGE, SUCH AS THE POLICIES DESCRIBED HERE, ISSUED TO A GENERAL CONTRACTOR, COVER THE GENERAL CONTRACTOR’S LIABILITY TO A THIRD PARTY FOR THE COSTS OF REPAIR OR REPLACEMENT OF DEFECTIVE WORK BY ITS SUBCONTRACTOR?
Washington Supreme Court Holds That Insurer’s Subpoena To, and Ex Parte Communications with, Arbitrator Constitute Bad Faith
By Troutman Pepper Locke on
In late 2007, the Washington Supreme Court held that (1) an insurer’s issuance of a subpoena to and ex parte written communications with an arbitrator in an underlying claim constituted bad faith; and (2) the insurer did not rebut the presumption of harm that arose from that bad faith finding.
California Wildfire Decisions May Provide a Guide for Future Disputes – Part II: “Usually Situated” Language May Be Found Ambiguous
In the wake of the wildfires that devastated Southern California in October of last year, more than 22,000 insurance claims were filed, according to the Insurance Information Network of California. While the bulk of those claims may be for additional living expenses due to the mass evacuation of San Diego County, at least 1,500 homes were destroyed by the fires.