In Hartford Accident and Indemnity Co, et al. v. Ace American Reinsurance Co., et al., No. 17625 (Sup. Ct. Conn. Dec. 25, 2007), the Connecticut Supreme Court found a “common cause” provision in a reinsurance treaty to be ambiguous for purposes of whether multiple asbestos claims could be aggregated as a single occurrence, reversing the lower court’s decision granting summary judgment to the defendant reinsurers. …
Read More Connecticut Supreme Court Rules that “Common Cause” Provision of Reinsurance Treaty Is Ambiguous With Respect to the Aggregation of Claims

As we reported here, Florida is dealing with several issues concerning its approved rates for property insurance.  Last Thursday, several property insurers were subpoenaed by Florida lawmakers to provide testimony before Florida’s Senate Banking and Finance Committee as to why homeowner’s insurance rates in that state have not declined a year after the state’s hurricane insurance pool was doubled. …
Read More Property Insurers Subpoenaed by Florida Legislature Over Rates

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. 

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Read More California Wildfire Decisions May Provide a Guide for Future Disputes

In a press release dated January 4, 2008, Massachusetts Attorney General Martha Coakley’s Office reported that it filed a complaint in Suffolk Superior Court against Ohio-based insurer Great American Insurance Group (“Great American”). 

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Read More Massachusetts Attorney General Files Complaint Against Insurer Alleging Bid Rigging

In a highly anticipated decision issued this morning, the U.S. Supreme Court upheld the dismissal of a shareholder lawsuit where the plaintiffs failed to establish reliance on any statements made by the defendants. …
Read More Breaking News: Supreme Court Rules Against Investors to Limit Shareholder Suits

As one of his first actions upon taking office in January 2007, Florida Governor Charlie Crist asked the state legislature to increase the state’s hurricane catastrophe fund.  Crist’s initiative was designed to lower insurers’ costs, and insurers, which bought reinsurance from the state, were supposed to pass their savings on to policyholders. 

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Read More Governor Crist Assembles Trial Team To Review Insurers’ Compliance With Rate Reform

On 7 January 2008 the European Commission made public a report it had commissioned on Insurance Guarantee Schemes (IGS) in the European Union. IGSs provide last-resort protection for policyholders in situations where insurers are unable to provide cover, usually due to their insolvency. They are commonly financed from levies on the insurance industry. …
Read More Report Published on Insurance Guarantee Schemes in the European Union

The Companies Act 2006 (2006 Act) codifies into statute the general duties owed by directors to the company (although not to the exclusion of the previous common law duties and equitable principles).  There are both civil consequences for directors who act in breach of the duties and criminal sanctions for breaching the duty to declare an interest in existing transactions or arrangements. 

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Read More UK: Companies Act 2006: ICSA Guidance on Directors’ Duties

The English and Scottish Law Commissions are currently engaged in a wide ranging review of insurance contract law. Since September 2006 they have published a series of Issues Papers and one formal Consultation Paper setting out their proposals for reform to the law of misrepresentation, non-disclosure, warranties and agency in the context of pre-contract information. …
Read More The English and Scottish Law Commissions Have Published Their Latest Paper on Insurance Contract Law Reform

On January 10, 2008, the Illinois Division of Insurance (“DOI”) issued a consumer alert advising caution with respect to “Stranger/ Investor Originated Life Insurance” (“STOLI”) arrangements. …
Read More Illinois Issues a Consumer Alert Regarding Stranger/ Investor Originated Life Insurance