On August 23, 2007, Louisiana Attorney General, Charles C. Foti, Jr. filed a lawsuit accusing over one hundred insurance companies of improperly denying Katrina related damages.  The action was brought on behalf of homeowners who are eligible to receive funds through the Road Home Program (“Program”). 

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Read More Louisiana AG Sues More Than One Hundred Insurance Companies Over Katrina-Related Damages

US law firm Edwards Angell Palmer & Dodge LLP (“EAPD”) and Kendall Freeman of London today announced a plan to merge effective January 1, 2008. 

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Read More Merger Plans Announced Between Edwards Angell Palmer & Dodge LLP and Kendall Freeman of London

Following the Red Sox sweep of the Colorado Rockies, some 30,000 fans of the Boston Red Sox can now follow the lead of Alex Rodriguez and opt out of paying for their furniture purchased in the spring. 

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Read More 30,000 Red Sox Fans Go To Bed Particularly Happy, At Prize Indemnification Insurer’s Expense

On October 26, 2007, Oregon AG Hardy Myers announced a settlement with ACE Group Holdings, Inc. and its subsidiaries (“ACE”) over allegations of improper, fictitious quoting and steering of insurance businesses.  The AG filed a stipulated judgment in Marion County State Circuit Court, in which ACE agreed to pay $4.5 million to a group of eight Attorneys General in settlement of their antitrust claims with no admission that ACE violated any laws. …
Read More Oregon Attorney General Settles State Antitrust Claims with Insurer

A Massachusetts-based furniture store, Jordan’s Furniture, ran a “Monster Deal” promotion (named for the left field Green Monster in Fenway Park) this past spring that promised to customers a full refund on certain furniture purchased between March 7th and April 16th if the Red Sox were to win the World Series.  The refund applies to sofas, dining tables, beds and mattresses. …
Read More If Red Sox Win the World Series, Boston Area Furniture Retailer, Backed by an Insurance Policy, Will Pay Full Refund for Sales Made in the Spring

Linda A. Watters resigned from her post as Commissioner of the Michigan Office of Financial and Insurance Services (the “OFIS”) on October 15, 2007, effective October 31.  Watters, who was named Commissioner of OFIS on April 11, 2003, will join the financial risk management practice of KPMG LLP in Chicago. 

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Read More Michigan Commissioner Linda Watters Resigns

On October 24, 2007, California Insurance Commissioner Steve Poizner issued an emergency declaration in anticipation of claims resulting from the Southern California fire storms. 

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Read More California Insurance Commissioner Issues Emergency Declaration in Response to California Wildfires

On October 17, 2007, a federal court judge sitting in the Eastern District of Louisiana dismissed a Katrina-related whistleblower lawsuit (United States of America, ex rel. Branch Consultants, Inc. v. Allstate Insurance Company, et al., Case No. 06-4091 (E.D.La. filed August 2, 2006)). 

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Read More Hurricane Katrina Whistleblower Lawsuit Dismissed

According to a recent report by Business Insurance, Canadian insurers should brace for a coming surge in directors’ and officers’ liability claims.  The rise in claims is an anticipated consequence of major changes in Canadian securities regulation dating back to 2005. 

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Read More Canadian D&O Claims Expected To Rise

In a working paper recently released, the Public Company Accounting Oversight Board (PCAOB), a non-profit entity created by the Sarbanes-Oxley Act (SOX) to oversee the auditors of public companies, found that the loss in market value following announcements of financial restatements has diminished since the July 30, 2002 implementation of SOX. 

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Read More PCAOB Study: Post-SOX Drop in Market Reaction to Restatements