The 11th Circuit Court of Appeals has held that an insurer of municipal bonds does not have standing to bring an action for federal securities fraud under Rule 10b-5 of the Securities and Exchange Act (“the Act”).
UnitedHealthcare Settles Claims For $12 Million
By Troutman Pepper Locke on
UnitedHealthcare, a subsidiary of UnitedHealth Group, Inc., entered into a settlement agreement last month whereby it agreed to pay $12 million to the Attorneys General of 36 states and the District of Columbia. This settlement comes after a multi-state investigation by state insurance regulators regarding UnitedHealthcare’s claims practices, fee schedules and deductibles.
Senate Banking Committee Approves Bill to Amend NFIP
The Senate Banking Committee has approved a version of the Flood Insurance Reform and Modernization Act of 2007 (the “Act”), which will now go to the entire Senate for a vote. The Act, which extends the National Flood Insurance Program (“NFIP”) through 2013, has several major differences from the House of Representatives’ version we previously reported about here. …
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Caterpillar Sues Aon Alleging Violations of Federal and State Antitrust Laws
By Troutman Pepper Locke on
On October 12, 2007, Caterpillar filed suit (the “Complaint”) against Aon Corporation, Aon Risk Services, Inc. of Illinois, and Aon Re Global, Inc. (“Aon”) in the United States District Court for the Central District of Illinois. …
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Florida Proposes Catastrophe Fund Reform
By Troutman Pepper Locke on
As discussed here, Florida established a Hurricane Catastrophe Fund (“CAT Fund”) in November 1993, to protect and advance the state’s interest in maintaining insurance capacity, by reimbursing insurers for a portion of their catastrophic hurricane losses. …
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New York Insurance Superintendent Proposes Change in Collateral Requirements for Non-New York Admitted Reinsurers
By Troutman Pepper Locke on
On Thursday, New York Superintendent of Insurance Eric Dinallo proposed a regulation seeking to eliminate the existing collateral requirements imposed on foreign and alien reinsurers operating in New York. …
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NAIC Shares its Proposal to Modernize Reinsurance Regulation with the IAIS
By Troutman Pepper Locke on
Earlier this week, the NAIC announced its proposal, as discussed in our June 7, September 12 and October 9 postings, to modernize U.S. reinsurance regulation to its international counterparts during a panel discussion at the 14th Annual Conference of the International Association of Insurance Supervisors (IAIS).
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Federal Terrorism Risk Insurance Program Moves One Step Closer to Renewal
Renewal of the federal terrorism risk insurance program established by the Terrorism Risk Insurance Act of 2002 (“TRIA”) moved one step closer to reality yesterday when the Senate Banking, Housing and Urban Affairs Committee approved legislation seeking a seven year extension of the program by a 20-1 vote. …
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Commentators Disagree Over D&O/E&O Exposure from Subprime Litigation
By Troutman Pepper Locke on
A recent report by Lehman Brothers Equity Research (“Lehman”) concluded that the estimated impact to D&O/E&O insurers from subprime issues will likely be no more than $1 billion. Lehman Brothers arrived at this estimate using past financial institution professional liability problems as a benchmark.
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Florida Issues Subpoena to Insurer in Investigation into Whether Federal and State Antitrust Laws are Being Broken
By Troutman Pepper Locke on
On October 16, 2007, the Florida Office of Insurance Regulation (“FLOIR”) issued a subpoena to several Allstate entities requesting that they appear before the FLOIR to give testimony and produce documents concerning their reinsurance program, their relationships to risk modeling companies, insurance rating organizations or companies and insurance trade associations. The subpoena calls for the testimony to take place on January 15-16, 2008.