In an opinion released yesterday, the Massachusetts Supreme Judicial Court affirmed the state insurance commissioner’s approval of proposed increases in property and casualty insurance rates. Ruling against the state Attorney General, the Court upheld the discretionary power of the Massachusetts Commissioner of Insurance to approve rate increases that exceed statutory maximums based on consideration of predicted hurricane loss effects and the cost of catastrophic risk reinsurance.
Massachusetts Developments
Massachusetts Automobile Insurance – A Status Report
By Troutman Pepper Locke on
Under Massachusetts new managed competition process to set auto insurance rates, previously discussed here and here, the State’s 19 automobile insurance companies were invited to make initial rate filings and then to submit amended rate proposals after reviewing their competitors’ proposals.
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Massachusetts Insurance Regulations Now Require Written Notice to Third-Party Liability Claimants of Settlement Payments Sent to Claimant’s Counsel
By Troutman Pepper Locke on
The Massachusetts Commissioner of Insurance Nonnie S. Burnes released a Division of Insurance Bulletin on December 20, 2007, which requires that any licensed insurer must, upon the payment of $5,000 or more in the settlement of a third-party liability claim that is delivered to the claimant’s attorney, provide a concurrent written notice to the claimant.
Massachusetts Court Orders Discovery of Reinsurance Agreements
By Troutman Pepper Locke on
A Massachusetts trial court recently ordered a defendant insurer to produce reinsurance agreements during discovery in a coverage dispute. Neles-Jamesbury, Inc. v. Liberty Mutual Ins. Co., C.A. No. 02-0982A (October 11, 2007). …
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Massachusetts Considering Creation of Catastrophe Fund and Other Reforms to Address Coastal Insurance Problems
By Troutman Pepper Locke on
A Massachusetts Special Commission recently recommended that Massachusetts create a catastrophe fund to reduce the cost of coastal insurance within the Commonwealth. Click here to review the Special Commission’s Report.
Massachusetts Automobile Insurance Rates Enter a New Age
By Troutman Pepper Locke on
On October 5, 2007, Nonnie S. Burnes, Commissioner of Insurance for the Massachusetts Division of Insurance, filed Regulation 211 CMR 79 (Private Passenger Motor Vehicle Insurance Rates) with the Attorney General’s Office. The new regulation is intended to encourage competition and innovation in the automobile insurance market, while maintaining consumer protections. …
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Massachusetts Appeals Court Finds That CGL Policy Does Not Cover Subcontractor’s Defective Work
By Troutman Pepper Locke on
In Mello Constr. Co. v. Acadia Ins. Co., 874 N.E.2d 1142 (Mass. App. Ct. 2007), an unpublished decision, the court held that the commercial general liability (“CGL”) policy of a general contractor did not cover the defective work of a subcontractor who performed a portion of the work. In Mello, a subcontractor improperly constructed the concrete slab supporting the elementary school for which the insured was the general contractor.
Massachusetts Courts Weigh In On Conflicts of Law, Bad Faith Damages And Duty To Defend
Three recent Massachusetts cases touched on issues of significance to insurers doing business in and around the Commonwealth.
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Merger Plans Announced Between Edwards Angell Palmer & Dodge LLP and Kendall Freeman of London
US law firm Edwards Angell Palmer & Dodge LLP (“EAPD”) and Kendall Freeman of London today announced a plan to merge effective January 1, 2008.
30,000 Red Sox Fans Go To Bed Particularly Happy, At Prize Indemnification Insurer’s Expense
By Troutman Pepper Locke on
Following the Red Sox sweep of the Colorado Rockies, some 30,000 fans of the Boston Red Sox can now follow the lead of Alex Rodriguez and opt out of paying for their furniture purchased in the spring.