Illinois Insurance Commission, Michael T. McRaith, has been selected by the Secretary of the Treasury as the first Director of the Federal Insurance Office (“FIO”), which was created by the Dodd – Frank financial reform legislation instituted last year.
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Illinois Developments
Seventh Circuit Reverses Decision that Disqualified Reinsurance Arbitrator Based on Service in Related Arbitration
By Troutman Pepper Locke on
The U.S. Court of Appeals for the Seventh Circuit recently issued a unanimous opinion in reversing a decision of the U.S. District Court for the Northern District of Illinois to hold that a party-appointed arbitrator’s involvement in an earlier arbitration between the same parties did not disqualify him or render him incapable of serving in a subsequent arbitration involving related issues. …
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Seventh Circuit Unanimously Lifts Injunction Issued in Arbitration, Holding that Arbitrator’s Service in Prior Arbitration Between the Parties Involving Overlapping Issues Did Not Disqualify Him from Serving in Subsequent Arbitration
By Troutman Pepper Locke on
The U.S. Court of Appeals for the Seventh Circuit recently issued its opinion in Trustmark Ins. Co. v. John Hancock Life Ins. Co., a case that both the reinsurance and general arbitration communities have been following closely. In a unanimous opinion, the Seventh Circuit reversed the District Court’s decision to hold that a party-appointed arbitrator’s prior involvement in an earlier arbitration between the parties did not disqualify him or render him incapable of serving in a subsequent arbitration involving related issues. …
Read More Seventh Circuit Unanimously Lifts Injunction Issued in Arbitration, Holding that Arbitrator’s Service in Prior Arbitration Between the Parties Involving Overlapping Issues Did Not Disqualify Him from Serving in Subsequent Arbitration
Illinois Federal Court Rules that Reinsurer’s Motion to Vacate Arbitration Award is Untimely Under the Federal Arbitration Act
By Troutman Pepper Locke on
R&Q Reinsurance Co. v. American Motorist Ins. Co., involved a dispute arising under a series of reinsurance treaties entered into by the parties. Pursuant to the arbitration clauses in the treaties, their dispute was heard by a panel of arbitrators, which issued its “Final Award” on February 5, 2010. …
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FEATURED POST: ARS Derivative Suits Will Need To Overcome Business Judgment Rule
By Troutman Pepper Locke on
Posted in Coverage & Claims, Illinois Developments
In the past few months, several derivative suits against mutual fund issuers of auction rate securities (ARS) have hit the courts. …
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Federal Court Orders Party to Produce Copies of its Reinsurance Agreements Under Fed. R. Civ. P. 26
By Troutman Pepper Locke on
Plaintiff moved to compel production of defendant American Red Cross’ reinsurance agreements. Defendant objected on the grounds that it was self-insured up to $1 million, and, in its counsel’s opinion, any judgment in the action would not exceed that amount. …
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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.
U.S. District Court Grants Insurer’s Motion for Summary Judgment, Finding No Coverage Where the Underlying Complaint Alleged Solely Intentional Conduct
By Troutman Pepper Locke on
The U.S. District Court for the Northern District of Illinois recently granted an insurer’s motion for summary judgment, finding no coverage on the ground that the underlying complaint alleged solely intentional conduct that was not covered under the Errors and Omissions insurance policy at issue.
Illinois Appeals Court Affirms Dismissal of Derivative Action Against Aon
By Troutman Pepper Locke on
An Illinois appeals court recently upheld the trial court’s dismissal of a derivative action brought against Aon based upon its alleged practice of collecting “contingent commissions.” …
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Plaintiffs Prevail in Rare Securities Class Action Verdict
By Troutman Pepper Locke on
On May 7, 2009, a jury in the Northern District of Illinois reached a mixed verdict finding in plaintiffs’ favor on several counts in the Household International securities fraud class action. The trial will now move on to the damages phase. Prior to this verdict, only six other securities class actions that involve conduct after the passage of the PSLRA in 1995, have been tried to a verdict. …
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