On August 1, 2007, New York’s Governor Spitzer signed into law S.3986-A, a bill intended to decrease friction between managed care plans and their participating providers on certain sensitive issues.  Most significantly, if a health plan requires that certain health care services be preauthorized in order to be covered, then once a service has been preauthorized and performed, the plan may not thereafter deny coverage for the service. 


Read More New York Enacts Managed Care Law Reforms

On remand for further proceedings from the Connecticut Supreme Court, the Appellate Court of Connecticut recently agreed with plaintiffs Hartford Accident and Indemnity Company and thirteen of its affiliates’ statutory interpretation of Connecticut General Statutes § 38a-27, holding that the plaintiffs are entitled to prepleading security from defendants Ace American Reinsurance Company and various other foreign reinsurance companies. 


Read More Connecticut State Court Rules That Service On Designated Agents For Process Sufficient And Orders Hearing On Amount Of Prepleading Security To Be Posted

The Reinsurance Association of American (“RAA”) recently joined a reinsurer in urging the United States Court of Appeals for the Tenth Circuit to overturn a decision of the Northern District of Oklahoma that held that Oklahoma’s Uniform Arbitration Act (the “Oklahoma Act”) prohibits arbitration agreements in reinsurance contracts. 


Read More Enforceability of Arbitration Agreements to be Decided by Tenth Circuit

On the heels of Marsh’s recent amendment to its broker fees settlement agreement with New York (which we reported about here), Willis has also reached an agreement with New York to amend its 2005 broker fees settlement agreement. 


Read More Willis Amends New York Settlement Agreement

The Ninth Circuit Court of Appeals has ruled that two separate class-action lawsuits, filed during different policy periods by different plaintiffs in different forums (as well as under two different legal theories), are Interrelated Wrongful Acts and subject to one policy limit. 


Read More Ninth Circuit Finds Two Class-Actions Are Interrelated Wrongful Acts

In a recent decision, Florida’s First District Court of Appeal enforced an express New York choice of law/forum selection provision in an environmental liability policy insuring a gas station located in Florida. 
Read More Environmental Claims – Florida Appellate Court Enforces New York Forum Selection Clause in Petroleum Discharge Case

At the top of the United States House of Representatives agenda when it reconvenes in September is a review of the “Homeowners’ Defense Act of 2007” (H.R. 3355 or the “Act”), a bill introduced on August 3, 2007 by Reps. Robert Klein and Tim Mahoney of Florida. 


Read More U.S. House to Review Homeowners’ Defense Act of 2007

Although there has been a recent slowdown in D&O claims, it appears that D&O insurers may soon be hit with a new wave of claims arising out of the subprime lending crisis.  To date, twelve securities class actions have been filed against mortgage lenders. 


Read More Subprime Lending Crisis Could Impact D&O Insurers

In National Union Fire Ins. Co. of Pittsburgh, Pa. v. Clearwater Ins. Co., 04-CV-5023 (S.D.N.Y., July 21, 2007), the Southern District of New York denied a cedent’s motion for summary judgment based on the follow the fortunes doctrine, finding that a material issue of fact existed as to whether a portion of a settlement involved payment for consequential damages claims that would be excluded under the reinsurance certificate at issue. 


Read More Southern District of New York Denies Summary Judgment to Cedent in Case Involving 3M Settlement