A Pennsylvania trial court recently overturned a $3 million jury verdict in Philadelphia’s first hormone replacement therapy trial. …
Read More Pennsylvania State Court Vacates $3 Million Hormone Replacement Jury Verdict Based Upon Failure To Prove Causation

As we previously discussed here, the move to change the rules governing collateral requirements for foreign reinsurers has been gaining momentum in a number of U.S. states.  New York started the trend last October, when its Superintendent of Insurance, Eric Dinallo, introduced a draft regulation that seeks to eliminate the existing collateral requirements imposed on foreign and alien reinsurers operating in New York. …
Read More Florida to Change Foreign Reinsurer Collateral Requirements

The State of Oregon was recently hit with winter storms that caused major flooding, landslides, and mudslides in several counties.  President Bush has declared five Oregon counties, Lincoln, Tillamook, Clatsop, Columbia and Yamhill, a federal disaster, prompting the Oregon Department of Consumer and Business Services to issue an emergency order (“Order”). 

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Read More Oregon Issues Emergency Order for Personal Lines Insurance

Several investors in a failed Bear Stearns Hedge Fund recently filed arbitration claims against two subsidiaries of Bear Stearns Companies, Inc. — Bear Stearns & Co., Inc. and Bear Stearns Securities Corp. The investors are represented by a group of four law firms with extensive arbitration experience against hedge funds. The fund at issue — the Bear Stearns High Grade Structured Credit Strategies Enhanced Leverage (Overseas) Fund — is one of two Bear Stearns hedge funds that filed for bankruptcy earlier this year after suffering heavy losses from their investments in subprime debt. 

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Read More Bear Stearns Faces Arbitration Claims Over Hedge Fund Subprime Losses Following Administrative Action in Massachusetts

Last week, an Indiana charity that “makes wishes come true” for children with life threatening illnesses filed arbitration claims over subprime related losses it allegedly suffered in a bond fund managed by Morgan Keegan & Co. The Indiana Children’s Wish Fund claims that it lost $48,000, or 22% of its $220,000 investment, in the Regions Morgan Keegan Select Intermediate Bond Fund. …
Read More Indiana Charity Files Arbitration Claims Against Bond Fund Advisor Over Subprime Losses

On October 5, 2007, Nonnie S. Burnes, Commissioner of Insurance for the Massachusetts Division of Insurance, filed Regulation 211 CMR 79 (Private Passenger Motor Vehicle Insurance Rates) with the Attorney General’s Office.  The new regulation is intended to encourage competition and innovation in the automobile insurance market, while maintaining consumer protections. …
Read More Massachusetts Automobile Insurance Rates Enter a New Age

In a matter of first impression, the New Hampshire Supreme Court recently held that a pro rata allocation method, as opposed to a joint and several approach, should be applied in an environmental coverage action for purposes of allocating long-term pollution damage among multiple triggered insurance policies. 

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Read More New Hampshire Supreme Court Adopts Pro Rata Allocation Methodology in Environmental Coverage Case

On November 28, 2007, Nebraska Governor Dave Heineman announced his appointment of Ann Frohman as the Director of the Nebraska Department of Insurance (the “Department”).  Frohman served as the Department’s Deputy Commissioner since January 2004. …
Read More Ann Frohman Appointed as Director of Nebraska Department of Insurance

This post serves as an update to our postings on June 7, September 12, October 9, and October 19.

During the winter meeting of National Association of Insurance Commissioners (“NAIC”) (November 30 through December 4, 2007), the Reinsurance Task Force (“Task Force”) of the Financial Condition (E) Committee unanimously adopted a framework memorandum outlining a three-part approach to modernizing current U.S. reinsurance regulation. 

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Read More NAIC Adopts Memorandum outlining Framework for Reinsurance Regulatory Modernization