Excess and Surplus Lines

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The United States Court of Appeals for the Third Circuit recently upheld a $182.9 million judgment against PricewaterhouseCoopers, LLP (“PWC”) for allegedly contributing to the failure of Ambassador Insurance Company (“Ambassador”) through negligent auditing.

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Read More Third Circuit Upholds Liability of PricewaterhouseCoopers in Ambassador Insolvency

During the National Association of Insurance Commissioners (“NAIC”) Fall Meeting in National Harbor, Maryland, the Surplus Lines Task Force (“Task Force”) chaired by Commissioner James Donelon (LA) received a report on the status of the proposed 2007 Nonadmitted and Reinsurance Reform Act (H.R. 1065/ S. 929) (the “Bill”). 

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Read More NAIC Surplus Lines Task Force Makes Progress Despite Likelihood that the Bill will not Pass this Year

The United States Court of Appeals for the Seventh Circuit recently remanded a choice-of-law determination to the district court for further proceedings because there was conflicting evidence about the principal place of business of one insured and the conflict could not be resolved on the paper record.
Read More Federal Appeals Court Vacates Summary Judgment Decision Where Conflicting Evidence Regarding Principal Place Business of Insured Precluded Determinative Choice of Law Decision

Connecticut Insurance Commissioner Thomas Sullivan recently endorsed proposed federal legislation to streamline the insurance producer licensing process and establish uniformity in the qualifications that need to be met in order to conduct business in multiple states.  According to Sullivan, producer regulation is an area where there is a need for federal legislation.
Read More The National Association of Registered Agents and Brokers Reform Act of 2008 (H.R. 5611) receives support from the Connecticut Insurance Commissioner

Nancy Praeger, President of the National Association of Insurance Commissioners (“NAIC”), sent a letter last month to the U.S. House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises (the “Subcommittee”) and the co-sponsors of H.R. 5792, Increasing Insurance Coverage Option for Consumers Act of 2008 (the “Bill”).

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Read More NAIC Comments On Proposed Reforms Of Liability Risk Retention Act

The recent judgment in Ace Capital Ltd v CMS Energy Corp [2008] EWHC 1843 (Comm) has provided welcome clarification on the effect of a US service of suit clause in a policy that contains an English arbitration provision.

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Read More UK: English High Court Examines the Interaction Between an English Arbitration Clause and a US Service of Suit Clause

The Chilean legislature was recently presented with a draft law designed to modernize the insurance and reinsurance provisions contained within Chile’s Code of Commerce.  If enacted, the legislation would replace Chile’s current laws concerning private insurance and reinsurance in their entirety. 

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Read More Chile Considers Legislation To Modernize Its Insurance and Reinsurance Laws

Last month, the New York State Insurance Department (the “Department”) held a public hearing in New York City to explore the possibility of expanding the Excess Lines Export List (the “Export List”).  The Export List is a compilation of risks or coverages that may be placed by surplus lines brokers without compliance with the three declinations rule. …
Read More Agents and Brokers Urge Expansion of New York Excess Lines Export List

The Florida Supreme Court has provided an answer to a question important to insurers that have issued policies under Florida’s surplus lines laws.  In Essex Ins. Co. v. Zota, Case No. SC06-2031 (June 26, 2008), the Court considered numerous questions certified from the U.S. Court of Appeals for the 11th Circuit. …
Read More Florida Supreme Court – Surplus Lines Policies Are Subject to Chapter 627, Florida Statutes

The United States District Court for the Southern District of New York recently held that an arbitrator was not precluded by the doctrine of functus officio from modifying his findings regarding a prior award in a dispute between parties, since that award did not resolve the question of damages related to a particular issue and thus was not “final.”

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Read More Federal Court Confirms Arbitration Award, Finding that Arbitrator did not Exceed His Powers in Amending a Portion of a Prior Award Regarding a Reinsurer’s Liability for Payments Made by its Cedent