On January 16, 2008, at the end of a two-month trial, a federal jury in the United States District Court for the District of Arizona found that Apollo Group, Inc. (“Apollo”) and two former Apollo executives violated federal securities laws by fraudulently misleading its investors about its recruitment policies. …
Read More $280 Million Securities Class Action Verdict Against Apollo Group

The much awaited European Commission’s (EC) final report into business insurance was published in September 2007 (click here for a link to the December 20, 2007 blog entry on the EAPD workshop into the competition inquiry).  The report urged the market to review its practices and recent statements by EC officials (speaking in a personal capacity at a web-seminar) suggested that the subscription market had months rather than years to carry out reviews and amend its current practices to avoid enforcement action. 

…
Read More EU/UK: European Commission: Competition in Business Insurance Inquiry: Responses Prepared by Insurance Bodies

Following the introduction in July 2007 of a standardised form of insurance/reinsurance contract, the Market Reform Contract (the MRC), the Market Reform Group have published the Market Reform Contract Endorsement (the MRC Endorsement). The MRC Endorsement is a standard form endorsement document for effecting changes to insurance and reinsurance contracts including premium adjustments and reinstatement premiums. 

…
Read More UK: Latest Step in Contract Certainty Reforms: The Market Reform Group in London Introduces the Market Reform Contract Endorsement

Today, former Brocade CEO Greg Reyes was sentenced to 21 months in prison and ordered to pay a $15 million fine in the first criminal trial to arise out of the stock options backdating scandal. …
Read More Breaking News: Brocade Stock Options Backdating Criminal Trial: Reyes’ Sentenced to 21 Months in Prison

After a three-month break, effective January 1, 2008, Florida returned to a no-fault system and again mandated that Florida drivers carry personal injury protection (“PIP”) coverage.  PIP coverage pays the first $10,000 of medical costs for injuries related to automobile accidents, regardless of who was at fault. 

…
Read More Florida No-Fault Statute Returns after Short Hiatus

The ABI has recently issued guidance on the payment of claims under Critical Illness, Income Protection and life insurance policies where medical information was not disclosed during the application process. 

…
Read More UK: The Association of British Insurers (ABI) Publishes Guidance on Non-Disclosure and Treating Customers Fairly: Claims for Long-Term Protection Insurance Products

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. 

…
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”). 

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