In a first-of-its-kind victory for a state attorney general, the office of Connecticut Attorney General Richard Blumenthal won its case against an insurance brokerage whom the court found to have failed to disclose to consumers the contingent commissions it received from certain insurers.
Read More Connecticut Attorney General Wins in Landmark Contingent Commissions Case
Connecticut Developments
Connecticut Attorney General Labels Credit Rating Agencies as “Enablers of the Wrongdoing,” and Calls for Regulatory Reform to End their System of Compensation
By Troutman Pepper Locke on
On April 23, 2010, Connecticut Attorney General Richard Blumenthal gave written testimony during to a hearing held by the U.S. Senate’s Permanent Subcommittee on Investigations regarding the nation’s financial rating agencies. According to Attorney General Blumenthal, the three large financial rating agencies skewed their ratings of structured finance securities in order to garner more fee-based ratings business from the very same clients that were marketing those financial instruments.
Connecticut Superior Court Awards Summary Judgment in Favor of Insurer on Uninsured Motorist Claim Involving Bottle-Throwing Pedestrian
By Troutman Pepper Locke on
The Connecticut Superior Court recently awarded summary judgment in favor of an insurer on an uninsured motorist claim involving a pedestrian who threw a bottle at the automobile driven by the plaintiff, injuring the plaintiff in the process. …
Read More Connecticut Superior Court Awards Summary Judgment in Favor of Insurer on Uninsured Motorist Claim Involving Bottle-Throwing Pedestrian
Connecticut Federal Court Finds that Reinsurer Does Not Have to Follow Cedent’s Fortunes
Employers Reinsurance Company, now known as Westport Insurance Corporation (“Westport”), provided reinsurance coverage for insurance policies issued by Connecticut Specialty Insurance Company (the “Reinsurance Agreement”). Royal Surplus Lines Insurance Company, later known as Arrowood Surplus Lines Insurance Company (“Arrowood”), entered into an agreement by which it assumed Connecticut Specialty’s liabilities under certain policies, including a general liability policy issued to Equity Residential (the “Policy”).
Read More Connecticut Federal Court Finds that Reinsurer Does Not Have to Follow Cedent’s Fortunes
Contingent Commissions Allowed for “Big Three” Insurance Brokers in New York, Illinois and Connecticut
Insurance regulators in New York, Illinois and Connecticut have reached an agreement to allow Aon Corp., Marsh & McLennan Companies Inc. and Willis Group Holdings plc (the “Big Three”) to receive contingent commission compensation from insurance carriers. As a condition to this new agreement, the Big Three have agreed to abide by the new producer compensation disclosure regulation proposed by the New York Insurance Department (the “Department”) in all U.S. jurisdictions.
Connecticut Jury Awards $14.7 Million Against Insurer for Violation of Unfair Trade Practices Act in Auto Body Shop Class Action Lawsuit; Continued Vitality of “Cigarette Rule” at Issue
In a class action lawsuit brought by various auto body shops and the Auto Body Association of Connecticut, a Connecticut jury recently rendered a $14.7 million verdict against an insurance company for allegedly violating the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. §42-110a et seq. (“CUTPA”).
Connecticut Superior Court Held that Insurer Was Not Required to Provide Underinsured Motorist Coverage for Insured’s Family Member
By Troutman Pepper Locke on
A Connecticut Superior Court recently awarded summary judgment in favor of an insurer on the basis that an insured’s family member who resides in the insured’s household is not entitled to underinsured motorist benefits if they are similarly not entitled to liability coverage under the family member’s policy. …
Read More Connecticut Superior Court Held that Insurer Was Not Required to Provide Underinsured Motorist Coverage for Insured’s Family Member
Connecticut Trial Court Holds That “General Business Practice” Element of an Unfair Settlement Practice Claim Requires Multiple Acts of Misconduct Against Multiple Insureds
A Connecticut trial court recently held that the “general business practice” element of an unfair settlement practice claim under the Connecticut Unfair Insurance Practices Act, Conn. Gen. Stat. §38a-816(6) (“CUIPA”) requires that a plaintiff prove multiple unfair practices by an insurer against more than one insured. …
Read More Connecticut Trial Court Holds That “General Business Practice” Element of an Unfair Settlement Practice Claim Requires Multiple Acts of Misconduct Against Multiple Insureds
Connecticut Appellate Court: Traffic Cop Not “Occupying” a Covered Vehicle at Time Struck is Limited to Workers’ Compensation Benefits
By Troutman Pepper Locke on
The Connecticut Appellate Court recently affirmed a trial court decision barring a police officer from recovering underinsured motorist benefits because he was not “occupying” a covered motor vehicle at the time he was injured and, consequently, is limited to his workers’ compensation remedy by the exclusivity provision contained in Conn. Gen. Stat. § 31-284 (a).
Connecticut Proposes New Regulation to Protect Seniors
The Connecticut Insurance Department issued a proposed regulation (the “Proposed Regulation”) relating to use of senior-specific certifications and professional designations in the sale of life insurance and annuities. The Proposed Regulation aims protect seniors from abusive sales practices and fraud and is based on the NAIC Model Regulation on the Use of Senior-Specific Certifications and Professional Designations in the Sale of Life Insurance and Annuities (the “Model”).
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Read More Connecticut Proposes New Regulation to Protect Seniors