Excess and Surplus Lines

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In connection with Florida’s transition of the state-run Citizens Property Insurance Corporation (“Citizens”) back to an insurer of last resort, the Florida House of Representatives recently approved by a 66-48 vote a bill (HB 245 [PDF]) that would allow surplus lines insurers to assume certain policies from Citizens. …
Read More Florida House Approves Bill for Assumption of Citizens Policies by Surplus Lines Insurers

At the annual National Association of Professional Surplus Lines Offices, Ltd. (“NAPSLO”) convention, the surplus lines industry recently reported that it has seen an increase of 10-15 percent in submission volume over the last year.  Although the price of most insurance written by surplus lines insurers has not increased (other than for insurance written on catastrophe exposed accounts), the industry reported that terms and conditions of such insurance is improving. …
Read More Surplus Lines Market Reports Increase in Business

On July 28, 2011, the U.S. House of Representatives Subcommittee on Insurance, Housing and Community Opportunity (subcommittee of the Committee on Financial Services) held a hearing entitled “Insurance Oversight: Policy Implications for U.S. Consumers, Businesses and Jobs.”  Committee members heard from state regulators, as well as various industry executives, a consumer advocate and others, regarding topics spanning from systemic risk in the insurance sector to reform in the producer licensing system.
Read More House Committee Holds Hearing: “Insurance Oversight: Policy Implications for U.S. Consumers, Businesses and Jobs”

The New York State Department of Taxation and Finance issued a memorandum regarding changes to the New York tax laws affecting insurance independently procured from unauthorized insurers in order to conform New York law to the requirements of the Nonadmitted and Reinsurance Reform Act of 2010. …
Read More New Tax Form for Insurance Independently Procured From Unauthorized Insurer in New York

Addressing apportionment issues left unresolved by the California Supreme Court’s decision in Montrose Chemical Corporation v. Admiral Insurance Company, 10 Cal.4th 645 (1995), California’s intermediate appeals court has ruled that an insured that manufactured asbestos-containing products must first exhaust the limits of all of its primary insurance before it may claim benefits under its excess coverage. …
Read More California Court Requires Complete Horizontal Exhaustion of Liability Coverage Before Excess Coverage Can Attach

Just because a series of merger documents assert something to be true does not necessarily make it so, particularly when it comes to insurance coverage.  That was the lesson an excess-layer D&O carrier learned when it attempted to assert insured-versus-insured and fraud exclusions to defeat a claim to policy proceeds by the purchaser of a corporation in Wojtunik v. Kealy, No. 03-cv-02161 (D.Ariz. Mar. 31, 2011).  A copy of the court’s decision is available here. …
Read More Arizona Federal Court Permits Garnishment From Defunct Company’s D&O Insurers

The New York Appellate Division for the First Department recently reversed a decision of a lower court that had granted summary judgment to the plaintiff, an excess insurer, on a count of insurance bad faith against a primary insurer. Federal Ins. Co. v. North Amer. Spec. Ins. Co. et al., Docket No. 603926/05 (N.Y.A.D., 1st Dep’t, April 5, 2011). …
Read More New York Appellate Court Reverses Judgment of Insurance Bad Faith and Remands for Additional Fact-finding

On April 18, 2011, the Superintendent of the New York Insurance Department promulgated the twelfth amendment to Regulation 41 (the “Amendment”).  Pursuant to the Amendment, excess lines insurers obtaining eligibility in New York on or after January 1, 2011 must maintain surplus to policyholders of at least $45,000,000, instead of $15,000,000. …
Read More New York Officially Increases Minimum Surplus Requirement for Excess Lines Insurers