On June 18, Representatives Barney Frank and Michael Capuano, both Democrats from Massachusetts, introduced legislation that would extend and expand the federal Terrorism Risk Insurance Program. The Terrorism Risk Insurance Revision and Extension Act of 2007 seeks to extend federal reinsurance coverage for terrorism risks for ten more years.
Third Circuit Rules that Consolidation is Issue for Arbitrators
By Troutman Pepper Locke on
On June 12, 2007, the Third Circuit affirmed a New Jersey district court’s ruling that arbitrators, and not the court, should determine whether a reinsurance dispute involving numerous asbestos claims should be arbitrated in a single, consolidated proceeding.
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The Brocade Criminal Trial: Former Employee Testimony Damaging to Reyes
By Troutman Pepper Locke on
The first criminal trial arising out of the stock options backdating scandals, involving Brocade Communications Systems, Inc.’s former CEO, Gregory Reyes, began on Monday, June 18, 2007 in the United States District Court for the Northern District of California. Reyes is accused of intentionally falsifying board meeting minutes and disseminating false financial statements in order to conceal the backdating of stock options.
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NCOIL to Review Potential Long Term Care Abuses
By Troutman Pepper Locke on
The National Conference of Insurance Legislators’ (NCOIL) Long Term Care and Health Retirement Issues Committee announced that it will discuss and review potential abuses in the long term care (LTC) insurance market at the upcoming NCOIL meeting in Seattle.
The Florida Hurricane Catastrophe Fund
By Troutman Pepper Locke on
In 1992, in the wake of Hurricane Andrew, the Florida Legislature enacted F.S. § 215.555, which created the Florida Hurricane Catastrophe Fund (the “Fund”). The Fund is a trust fund, established to reimburse insurers, who write covered policies under F.S. § 215.555(2)(c), for a portion of their catastrophic hurricane related losses.
Florida’s Valued Policy Law – When Determining Whether Building is “Total Loss,” Court May Consider Whether Cost of Repair Exceeds Value
By Troutman Pepper Locke on
Florida’s First District Court of Appeal recently decided that, when determining whether the structure is a “total loss” under Florida’s former Valued Policy Law (“VPL”), a court could consider whether the cost of repairing the building would exceed its value.
Delaware Court Grants Motion to Dismiss Stock Options Backdating Suit
By Troutman Pepper Locke on
The Delaware Court of Chancery recently granted a motion to dismiss a shareholder derivative action involving Sycamore Networks, Inc. that alleged misconduct in the issuance of stock options.
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Florida Appellate Court Holds That Injured Party Suing Tortfeasor’s Insurer for Bad Faith is Not Entitled to Privileged Communications Between Insured, Insurer, and their Joint or Separate Counsel
A Florida appellate court recently swam against a tide of decisions that have eroded the attorney-client privilege in bad faith litigation.
SEC Prevails in Fraud Case Against Risk Manager
By Troutman Pepper Locke on
Posted in Industry Developments, United States
A New York jury recently found a cell phone distributor’s risk manager liable for his alleged role in a scheme to commit securities fraud. According to the SEC’s allegations, the scheme involved the cell phone distributor’s purchase of a multi-year finite risk insurance policy, which enabled the company to spread a loss over several years.
Supreme Court Weighs in on Dirty Sites – CERCLA Permits Private Right of Action
By Troutman Pepper Locke on
On June 11, the United States Supreme Court has paved the way for additional litigation under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”).
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