New York’s First Department recently issued a decision refusing to revive a stock-option backdating shareholder derivative lawsuit against Bed Bath & Beyond (“BB&B”) based upon the immediate remedial action taken by the directors of the home décor company.
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New York Developments
NY Insurance Department Issues OGC Opinion Answering Questions Regarding NY’s Late Notice Statute
By Troutman Pepper Locke on
The New York Insurance Department issued OGC Opinion No. 09-01-05 addressing several questions posed with respect to Chapter 388 of the Laws of 2008 (generally referred in this blog as the late notice Legislation), and the discussion of the Legislation in the Insurance Department’s Circular Letter 26 (Nov. 18 2008),
U.S. Court of Appeals for the Second Circuit Finds that Insured Cannot Assert a Direct Action Against its Reinsurer
By Troutman Pepper Locke on
Plaintiff Jurupa Valley Spectrum, LLC (“Jurupa”) is a beneficiary of certain surety bonds issued by Frontier Insurance Company, which were reinsured by National Indemnity Company (“NICO”). See Jurupa Valley Spectrum, LLC v. National Indemnity Co. and National Liability & Fire Ins. Co., No. 07-cv-3211 (2d Cir. Feb. 4, 2009).
Superintendent Dinallo Discusses More on the Revival of the New York Insurance Exchange
By Troutman Pepper Locke on
In a recent interview with National Underwriter magazine, New York Superintendent of Insurance Eric Dinallo stated that there are “major top-end brokers” interested in doing business on the potentially-resurrected New York Insurance Exchange (the “Exchange”) if it can help increase market capacity.
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The U.S. Re Under 40s Presents “It’s Not Your Father’s Reinsurance Anymore – Putting Reinsurance in Your Terms” – a Complimentary Event on March 12
By Troutman Pepper Locke on
The U.S. Reinsurance Under 40s Group, Inc. invites you to our next event, which will take place on March 12 at QBE the Americas’ office in downtown New York. The Re Under 40s Group welcomes Frank Nutter, President of the Reinsurance Association of America (RAA), and his daughter Alycia Kiley, Vice President at Riggs, Counselman, Michaels & Downes (RCM&D), as they present insights on hot industry topics and lead a discussion about how reinsurance companies and organizations can better communicate with young professionals in today’s networked world. …
Read More The U.S. Re Under 40s Presents “It’s Not Your Father’s Reinsurance Anymore – Putting Reinsurance in Your Terms” – a Complimentary Event on March 12
New York Releases Draft Regulation on Producer Compensation Transparency
By Troutman Pepper Locke on
On January 29, 2009, the New York Insurance Department (“NYID”) released a draft regulation on producer compensation transparency (the “Draft Regulation”), which aims to protect public interests by setting forth minimum disclosure requirements regarding the role of insurance producers and the “actual or potential conflicts of interest created by compensation paid to insurance producers.” …
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Southern District Orders Cedent To Produce Documents Relevant To Reinsurer’s Prompt Notice Defense
By Troutman Pepper Locke on
In a recent decision of the United States District Court for the Southern District of New York, AIU Ins. Co. v. TIG Ins. Co., 07 Civ. 7052 (SHS) (HBP) (S.D.N.Y. Nov. 25, 2008), the court ordered AIU Insurance Company (AIU”) to produce documents relevant to whether prompt notice of certain claims arising under the reinsurance contracts at issue was provided to TIG Insurance Company (“TIG”).
New York Court Rules That Intentional Acts Exclusion Does Not Bar Coverage Under Homeowner’s Policy For Insured’s Liability Arising From “Bear Hug”
By Troutman Pepper Locke on
In Clayburn v. Nationwide Mut. Fire Ins. Co., 10 A.D.3d 778 (N.Y. App. Div. 3d Dept Jan. 15, 2009), a New York appellate court affirmed summary judgment in favor of the insured finding that the intentional acts exclusions in its homeowner’s policy did not bar coverage for personal injuries resulting from the insured’s bear hug of another person. In that case, the insured engaged the underlying claimant in a bear hug after the claimant had pushed the insured’s brother to the ground. …
Read More New York Court Rules That Intentional Acts Exclusion Does Not Bar Coverage Under Homeowner’s Policy For Insured’s Liability Arising From “Bear Hug”
New York Insurance Department Approves CIFG Transactions
On January 22, 2009, the New York Insurance Department (the “NYID”) approved two transactions involving CIFG Holding, Ltd. (“CIFG”), a financially-impaired bond insurer. The transactions involved a commutation of approximately $12 billion in troubled credit default swaps and reinsurance of $13 billion of municipal bonds, and are expected to help the company avoid rehabilitation. Last year, the NYID agreed to forbear placing CIFG in rehabilitation in order to allow these transactions to develop.
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CLIENT ADVISORY: New York Releases Proposed Amendment to Regulation No. 20 Relaxing Collateral Requirements for Unauthorized Reinsurers and Prohibiting Arbitration
By Troutman Pepper Locke on
On December 24, 2008, the New York State Insurance Department (“NYSID”) released Proposed Tenth Amendment to Regulation No. 20 (11 NYCRR 125) Credit for Reinsurance from Unauthorized Reinsurers (the “Proposal”). The Proposal, if adopted, would significantly liberalize existing reinsurance regulation by allowing ceding insurers to take statutory credit for reinsurance assumed by unauthorized, unaccredited reinsurers without requiring as much, or in some cases, any collateral if certain conditions are satisfied. …
Read More CLIENT ADVISORY: New York Releases Proposed Amendment to Regulation No. 20 Relaxing Collateral Requirements for Unauthorized Reinsurers and Prohibiting Arbitration