A Louisiana state appellate court was recently faced with the question of the applicability of Louisiana’s Valued Policy Law in a Katrina-related case, in the case of Landry v. Louisiana Citizens Property Insurance Company, and the Louisiana state court followed the holding of the Fifth Circuit’s decision in Chauvin v. State Farm Fire & Casualty Co.  In so holding, the state appellate court ruled that insureds who suffered a total loss from a hurricane are not entitled to recover the full amount of their loss if the loss was due to both covered and non-covered perils. 

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Read More Louisiana State Appellate Court Tackles Valued Policy Law

Earlier this summer, a federal district court in Washington certified questions to the Supreme Court of Washington concerning whether an insured can maintain a procedural bad faith claim despite the fact that coverage was properly denied.  The case, entitled St. Paul Fire and Marine Ins. Co. v. Onvia, Inc., Docket No. C06-1056RSL (W.D. Wash.)(see here), involved a claim based on a class action involving the insured’s practice of distributing advertisements via fax. 

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Read More Federal District Court Asks Washington Supreme Court to Clarify Availability of Bad Faith Claims

A special committee investigating the Durham, North Carolina Police Department’s handling of the Duke lacrosse rape case has halted its investigation after the city’s liability insurer warned that the committee’s findings could provide material for civil lawsuits and requested that the investigation cease. 

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Read More Investigation of Police Handling of Duke Lacrosse Case Temporarily Suspended at Request of City’s Insurer

Earlier this month, a federal district court in California granted an insured’s motion for partial summary judgment in a Katrina-related coverage case, holding that flood damage arising out of storm surge is not excluded under the policy’s flood exclusion. 

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Read More Storm Surge is Not Excluded by an Excess Policies Flood Exclusion According to a Federal Court in California

Laying to rest antitrust claims that have embroiled dozens of insurance companies and the nation’s largest insurance brokers for well over two years in In re Insurance Brokerage Antitrust Litigation, MDL 1663 (D.N.J.), Chief Judge Garrett Brown dismissed claims by putative class plaintiffs that the U.S. insurance industry was riddled with unlawful conspiracies to restrain trade. 

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Read More Sherman Act Claims Dismissed With Prejudice in Insurance Brokerage Litigation

U.S. property and casualty insurers face only  “minimal” exposure to risks associated with the subprime lending crisis, according to a recent report by credit rating agency Fitch Ratings. 

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Read More Rating Agency Says that Property and Casualty Insurers Face “Minimal” Subprime Lending Exposure

On July 26, 2007, the Internal Revenue Service issued final regulations governing Internal Revenue Code Section 403(b) plans that allow workers in public schools and certain tax-exempt organizations to set aside pre-tax money for retirement. 

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Read More IRS Issues Comprehensive Regulations Governing 403(b) Tax Sheltered Annuity Plans

The National Council on Compensation Insurance has proposed that Florida reduce its statewide workers compensation by 16.5% for 2008 due in part to a decline in the number of claims and the lower ultimate values of claims paid. 

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Read More Proposed Rate Reduction Could Save Florida Employers Millions

Following a three-year investigation, the Ohio Attorney General filed suit last week against Marsh & McLennan Companies, Inc. and four insurers, alleging violations of Ohio’s antitrust laws.  The complaint contends that Marsh and the insurers conspired to eliminate competition in the market for commercial casualty insurance in Ohio during the 2001 through 2004 time period. 

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Read More Ohio Attorney General Brings State Antitrust Claims Against Marsh McLennan and Four Insurers

In a press release issued August 28, 2007, New York Insurance Superintendent Eric R. Dinallo announced that insurers may not refuse to renew homeowners insurance policies based on whether a policyholder has other business with them, such as an automobile or life insurance policy. 

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Read More New York State Insurance Department Instructs Insurers to Rescind Non-Renewal Notices Sent to Coastal Homeowners