Last week we reported that Prudential Financial, Inc. and one of its subsidiaries, Prudential Retirement Insurance and Annuity Company, has sued State Street & Trust Corp. and State Street Global Advisors over losses allegedly suffered by Prudential clients in two bond funds managed by State Street (see here).
Washington Federal Court Finds that Facultative Reinsurer is not Obligated to Pay a Loss Outside the Scope of the Underlying Policy
By Troutman Pepper Locke on
Posted in Reinsurance, United States
Recently, the United States District Court for the Western District of Washington held that a facultative reinsurer was not bound to follow the fortunes of its cedent for a loss that was outside the scope of the reinsured policy and not paid in good faith.
Wind Loss Liability Verdict Leads To Settlement Of Katrina Suit Before Damages Phase
By Troutman Pepper Locke on
On September 28, 2007, a jury in an action venued in the United States District Court, Southern District of Mississippi, found that certain damage to the home of Kevin and Sherrye Webster was caused by wind, wind-blown debris and/or wind-driven rain, which were all covered perils under the Websters’ homeowners’ policy.
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Under Certain Policy Language, Settlement Payments Not Recoverable Absent Adjudication in California
By Troutman Pepper Locke on
A California appellate court recently ruled that propulsion manufacturer Aerojet’s payment of approximately $175 million to settle regulatory enforcement actions over liability for groundwater contamination cannot be recovered under certain excess policies absent a final adjudication of liability.
Iowa Seeks Reforms to Long-Term Care Insurance
By Troutman Pepper Locke on
At the request of Governor Culver in June of this year, the Iowa Division of Insurance conducted a three-month review of issues relating to long-term care insurance. The Governor’s request grew out of concerns at both the state and national level regarding long-term care insurance policies and increasing complaints about pricing, rate increases, denial of claims and questionable market practices.
New York Proposes Mandatory Requirement for Property Insurers to Maintain Catastrophe Reserves
By Troutman Pepper Locke on
New York Insurance Superintendent Eric Dinallo announced last week that the State is considering a new regulation requiring that all property insurers writing policies covering damage from hurricanes and other natural disasters establish on their books a catastrophe reserve. If adopted, this regulation would be the first of its kind in the United States. …
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SDNY Applies “Prior And Pending Litigation” Exclusion To Limit Coverage Under D&O Policy
By Troutman Pepper Locke on
The United States District Court for the Southern District of New York recently broadly applied a so-called “prior and pending litigation” exclusion to limit coverage for the settlement of a lawsuit, finding that many of the lawsuit’s allegations overlapped with allegations made in a lawsuit filed prior to the inception of the policy.
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Nevada Court Vacates Arbitrator’s Award of Punitive, Other Damages
By Troutman Pepper Locke on
Recently, the United States District Court for the District of Nevada vacated an arbitration panel’s award that consisted of, among other things, punitive damages, finding that the award was in manifest disregard of the law and outside the scope of the panel’s jurisdiction.
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Stoneridge v. Scientific-Atlanta: Supreme Court Indicates It Will Not Broaden Secondary Actor Liability In Securities Class Actions
By Troutman Pepper Locke on
The United States Supreme Court heard oral argument yesterday in a case that presents the Court with the opportunity to broaden the class of potential defendants in private securities class actions, which would substantially increase litigation exposure for corporate America. The questions and comments of the Justices suggest that the majority of the Court is not prepared to alter the current securities class action landscape.
Louisiana Launches $100 Million Property & Casualty Incentive Program
By Troutman Pepper Locke on
Louisiana has begun accepting applications from property and casualty insurance companies for grants under the Insure Louisiana Incentive Program. According to Louisiana Insurance Commissioner Jim Donelon, the program is designed to “attract more property and casualty providers to [Louisiana] and to increase the private market capacity by 15%.” …
Read More Louisiana Launches $100 Million Property & Casualty Incentive Program