On Wednesday, November 7, 2007, the United States Supreme Court heard oral arguments in Hall Street Associates, LLC v. Mattel, Inc., No. 06-989, in which the court is examining whether parties can contract for arbitration agreements that allow for judicial review of an arbitrator’s decision beyond that which is already provided for in the Federal Arbitration Act (“FAA”). …
Read More Supreme Court Hears Oral Argument on the Scope of Judicial Review of Arbitral Awards

The First Circuit Court of Appeals recently issued an opinion that touched on several aspects of Maine law concerning claims-made insurance policies.  Edwards v. Lexington Ins. Co., No. 07-1414 (1st Cir. Nov. 5, 2007). 

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Read More Federal Appeals Court Examines Maine Law Concerning Claims-Made Policies

Recently, a New York state court gave the New York Liquidation Bureau (“NYLB”) permission to notify more than 300,000 creditors of Union Indemnity Insurance Company (“Union Indemnity”) that it plans to make the first distribution from the insolvent property casualty insurer’s estate. …
Read More New York State Court to Determine Whether Distribution from Insolvent Union Indemnity Estate Should be Permitted

A shareholder class action suit was filed against Merrill Lynch & Co. on October 30, 2007 following an announcement by Merrill Lynch that it would have to write-down $8.4 billion in connection with mortgage-related investments. The charge for that write-down is being taken in the third-quarter of 2007. 

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Read More Shareholders File Class Action and Derivative Suits Against Merrill Lynch Over $8.4 Billion Subprime Write-Down

Effective November 8, 2007, the Rhode Island Department of Business Regulation implemented Regulation 67, which provides new requirements for the retention and maintenance of records necessary for market conduct examinations. …
Read More Rhode Island Adopts Record Retention Regulation for Insurance Companies

Last week, Standard & Poor’s (“S&P”) revealed that a $190 million catastrophe bond issued by special purpose vehicle KAMP RE 2005 Ltd. (“KAMP RE”) on behalf of Swiss Reinsurance America Corp., (“Swiss Re”) is about to be triggered. …
Read More KAMP RE Cat Bond About to be Triggered

On Tuesday, Washington voters approved a measure to allow plaintiffs to receive treble damages from claims alleging bad faith claims handling by an insurer.   This is a marked increase from the current law that limits recoveries resulting from bad faith of an insurer to the actual damages incurred. 

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Read More Washington Voters Approve Measure to Allow Treble Damages in Insurer Bad Faith Actions

In Zurich American Ins. Co. v. The Superior Court of Los Angeles County, et al., No. B194793 (Cal. App., 2nd Dist., Oct. 11, 2007), an appellate panel reversed a lower court’s order and held that the attorney-client privilege extends to communications between an insurer’s employees regarding legal advice and strategy, even if such communications do not contain advice directly from counsel, when disclosure is reasonably necessary for the transmission of that information or to further the purpose of the legal consultation. …
Read More California Appellate Court Rejects Narrow Definition of Attorney-Client Privilege With Respect to Documents Contained in Insurer’s Claims Files

The Federal District Court for the Southern District of Mississippi recently unsealed the court record in a lawsuit filed by State Farm Fire and Casualty Company (“State Farm”) against the Attorney General of Mississippi, Jim Hood. 

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Read More State Farm Sues Mississippi Attorney General Jim Hood

On November 8, 2007, Louisiana Attorney General Charles C. Foti, Jr. announced that his office filed a petition in New Orleans Civil District Court suit against Allstate Insurance Company, Lafayette Insurance Company, Xactware, Inc., Marshall & Swift/Boeckh, LLC, Insurance Services Office, Inc., State Farm Fire and Casualty Company, USAA Casualty Insurance Company, Farmers Insurance Exchange, Standard Fire Insurance Company and McKinsey & Company for alleged violations of the Louisiana Monopolies Act. …
Read More Louisiana AG Files State Antitrust Suit Against Insurers