Illinois Developments

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In Phillips v. Prudential Insurance Co. of America, No. 11-3870 (7th Cir. May 6, 2013), the Seventh Circuit recently affirmed dismissal of a putative class action that challenged a life insurer’s use of “retained asset accounts” to make payment of the policy’s benefits. On behalf of a putative class, Zena Phillips sued Prudential, alleging that by not paying her policy benefits in a lump sum, it breached an insurance policy, its statutory duty of good faith, and its fiduciary duties. …
Read More The Seventh Circuit Rules That Life Insurers May Create Retained Asset Accounts to Pay Death Benefits, if the Policy Does Not Require Lump Sum Payments

In a recent decision, an Illinois appellate court determined that the collapse of a porch, resulting in injury or death to more than forty individuals, constituted a single “occurrence” for the purposes of determining coverage under a commercial general liability insurance policy. With this decision, the court recognized an important limitation on the applicability of a test previously adopted by the state’s Supreme Court for determining the number of occurrences implicated by a claim. …
Read More Illinois Appeals Court Declines To Extend “Time and Space Test” For Determining Number Of Occurrences To Cases Involving Single Negligent Act

Recently, on August 6, 2012, Massachusetts Governor Deval Patrick signed into law Senate Bill 2400. The Bill, which states that it is “An Act improving the quality of healthcare and reducing costs through increased transparency, efficiency and innovation,” goes into effect on November 4, 2012. …
Read More Healthcare Update: Massachusetts Bans Mandatory Overtime for Nurses

In JP Morgan Chase & Co. v Indian Harbor Ins. Co., 2012 NY Slip Op 4702 (N.Y. App. Div. 1st Dep’t June 12, 2012), the New York Appellate Division, applying Illinois law, held that an insured was unable to access numerous excess layers due to its failure to show that the exhaustion provisions in the excess policies had been satisfied. …
Read More New York Appellate Division Affirms Lower Court’s Ruling That Excess Insurers Have No Payment Obligations Where The Insured Fails to Satisfy Conditions Precedent to Exhaustion

The Interstate Insurance Product Regulation Commission (“IIPRC”) issued a press release on January 6, 2012 (the “Release”) announcing that Illinois will accept variable life and annuity product filings using Interstate Insurance Compact (“Compact”) standards.  The Compact is a modernization initiative promoting uniform product standards across states. …
Read More Interstate Insurance Product Regulation Commission Announces That Illinois Accepts Variable Product Filings Through the Compact

Robert E. Wagner has been appointed as acting director of the Illinois Department of Insurance (the “Department”) by Governor Pat Quinn.  Acting Director Wagner most recently served as the Department’s General Counsel. …
Read More New Illinois Department of Insurance Acting Director Named; New Montana Deputy Commissioner of Securities and Insurance Named

On December 12, 2011, the Illinois Department of Insurance issued a revised bulletin (the “Bulletin”) regarding the use of retained asset accounts by life insurance companies.  Retained asset accounts, for purposes of the Bulletin, are mechanisms by which an insurer or entity acting on behalf of an insurer may settle proceeds payable under a policy by depositing such proceeds into an account, and retaining them in accordance with the terms of supplementary contract not involving annuity benefits. …
Read More Illinois Issues Revised Bulletin on Use of Retained Asset Accounts

Andrew R. Stolfi has been appointed as acting director of the Illinois Department of Insurance (the “Department”) by Governor Pat Quinn.  Acting Director Stolfi most recently served as chief of staff and special counsel for policy and legislative affairs at the Department since 2009. …
Read More Illinois Department of Insurance Acting Director Named

On June 13, 2011, Illinois Insurance Commissioner Michael T. McRaith became the first Director of the Federal Insurance Office (FIO).  The FIO was created by the Dodd-Frank financial reform legislation, which was instituted last year. …
Read More Illinois Insurance Commissioner McRaith Becomes First Director of FIO

This updates our May 3, 2011 blog post.  Several state regulators have joined together to form a special task force (“Task Force”) under the auspices of the NAIC to coordinate investigation of the claims procedures of certain life insurance companies.  In particular, states are examining the manner in which such companies investigate and determine whether a particular insured is deceased, and locate beneficiaries. …
Read More NAIC Task Force Established to Coordinate Investigation of Life Insurance Companies’ Claims Procedures