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

As we recently reported, Dickie Scruggs, along with his son and other colleagues, were recently indicted on charges in a judicial bribery case.  Despite some media reports of Scruggs’ initial reluctance to withdraw from the representation of hundreds of policyholder clients in pending Katrina-related coverage lawsuits, Scruggs and his law firm have withdrawn their representation in these suits. …

Read More Scruggs Withdraws from 500 Katrina Coverage Cases

The U.S. District Court for the Northern District of California recently granted an insurer’s motion to intervene in an indemnity dispute between another insurer and an asbestos product supplier. …
Read More California Federal Court: Second Insurer With Interest In Outcome Of Coverage Litigation Has Right To Intervene

New York Superintendent of Insurance Eric R. Dinallo has asked the State’s Workers’ Compensation Board to create new regulations for workers’ compensation medical treatment using recently issued evidence-based guidelines.  The goal is to establish a system in New York, like in some other states, whereby individuals with the same condition receive the same form of treatment. 

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Read More New York To Create New Workers’ Compensation Medical Treatment Regulations

On December 5, 2007, following a 5 1/2 day trial in the U.S. District Court for the Northern District of California, a jury convicted Brocade’s former head of human resources, Stephanie Jensen, of falsifying corporate records and conspiracy. 

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Read More Second Brocade Executive Convicted in Backdating Prosecution

A New York state trial court recently held that an insured’s breach of contract action was time-barred because he failed to commence suit within two years of the dates of loss, as required by the policy. 

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Read More New York Trial Court Dismisses Coverage Claim As Time-Barred By Policy

Executive Life Insurance Company of New York (ELNY) was placed into rehabilitation in 1991 after affiliated companies became insolvent and concerns about its future solvency arose.  The rehabilitation plan adopted in 1992 involved the transfer of much of ELNY’s business to another carrier; however, ELNY in rehabilitation retained substantial assets and continued payment on certain annuities, with the bulk of the payout going to structured settlement annuitants that had received long-term and/or lifetime annuities as settlements in personal injury lawsuits. 

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Read More Spitzer, NYLB Announce Proposed Resolution of Projected Shortfall in Executive Life Insurance Company of New York Rehabilitation

On Tuesday, December 4, the U.S. Supreme Court heard oral arguments in Riegel v. Medtronic, Inc.  The case is an appeal of the Second Circuit’s decision finding that the Food and Drug Administration’s extensive pre-market approval process for Class III medical devices pre-empts state law causes of action for injuries allegedly caused by those devices.  The Circuit Courts are currently split on the question. 

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Read More Update: Supreme Court Hears Arguments in FDA Preemption Case

With Congress scrambling to pass legislation extending the Federal Terrorism Risk Insurance Program before its expiration at the end of the month, New York lawmakers requested yesterday that any final extension act include a “reset” provision.  Such a provision would lower the trigger levels for federal reimbursements under the TRIA program in areas already hit by a terrorist attack. …
Read More New York Lawmakers Request Inclusion of “Reset” Provision in any TRIA Extension

An Illinois judge recently struck down the two-year-old state law that capped medical malpractice awards, ruling that the law violates the Illinois constitution’s “separation of powers” clause by depriving judges and juries of their right to determine fair compensation. …
Read More Illinois Medical Malpractice Cap Ruled Unconstitutional