On December 29, 2008, the New York Insurance Department’s (“NYID”) Office of General Counsel (“OGC”) issued an opinion setting forth its position with respect to NYID Circular Letter No. 27 (2008) (the “Circular Letter”) that addressed the issue of whether same-sex marriages from jurisdictions outside of New York are covered under group long-term disability, group short-term disability and group term life insurance issued in New York. We previously reported here on the Circular Letter.
Read More New York Insurance Department: Legally Married Same-Sex Couples Should be Recognized with Respect to Certain Types of Health and Term Life Insurance Issued Under New York Law
New York Developments
New York State Court Reverses Demand Futility Dismissal Although Board Had Formed an SLC Before Litigation Was Filed
By Troutman Pepper Locke on
New York’s First Department recently issued a decision addressing the circumstances under which a company’s appointment of a special litigation committee (“SLC”) can shield its directors and officers from shareholder derivative litigation.
New York Insurance Department Issues Circular Letter Regarding Late Notice Legislation, Which Takes Effect on January 17, 2009
“[A]ll liability policies” issued or delivered in New York on or after January 17, 2009 will be subject to the recent Legislation promulgated under Chapter 388 of the Laws of 2008 (the “Legislation”). The New York Insurance Department (“Department”) has issued Circular Letter No. 26 (2008), dated November 18, 2008, to remind liability insurers writing property/casualty policies of the changes resulting from the new law, and also to clarify certain aspects of the Legislation.
New York Federal Court Finds that Arbitrator’s Resignation Due to Illness Means that Arbitration Must Start Over From the Beginning
By Troutman Pepper Locke on
Insurance Company of North America and INA Reinsurance Company (“INA”) reinsured Public Service Mutual Insurance Company (“PSMIC”) pursuant to a series of excess of loss reinsurance contracts, effective from 1971 to 1986 (the “Reinsurance Contracts”). In 2005, PSMIC settled a claim against its insured, Deleet Merchandising Corporation, at a site in Newark, New Jersey (the “Deleet claim”) and allocated the loss pro-rata over fifteen insurance policies PSMIC had issued to Deleet between 1971 and 1986. PSMIC then billed its reinsurers, including INA, for the Deleet claim based upon this allocation.
Update: New York Releases Draft Proposal Of Amendments To Credit For Reinsurance From Unauthorized Insurers Regulations
By Troutman Pepper Locke on
On December 24, 2008, the New York State Insurance Department (“NYSID”) released a draft of its proposed amendments (the “Proposal”) to New York’s insurance regulations that authorize admitted insurers to receive credit for reinsurance ceded to unauthorized insurers.
AIG Completes Sale of Residential Mortgage Backed Securities to the NY Fed
By Troutman Pepper Locke on
AIG announced yesterday that it had completed a sale of residential mortgage backed securities (“RMBS”) to Maiden Lane II, a fund established by the Federal Reserve Bank of New York (the “NY Fed”) as part of its plan to ensure AIG remains solvent. The assets, with a face value of $39.3 billion, were purchased by Maiden Lane II for $19.8 billion. The fund was established to eliminate the liquidity issues associated with AIG’s securities lending program. …
Read More AIG Completes Sale of Residential Mortgage Backed Securities to the NY Fed
The New York Insurance Department Will No Longer Approve D&O Policies Lacking “Duty-to-Defend” Coverage Feature
By Troutman Pepper Locke on
The New York Insurance Department has long prided itself for being an activist state regulator for insurance business underwritten in the world’s financial capital. …
Read More The New York Insurance Department Will No Longer Approve D&O Policies Lacking “Duty-to-Defend” Coverage Feature
New York Court of Appeals Recognizes Personal Jurisdiction Over Brazilian Domiciliaries Served In Brazil Under New York Law
By Troutman Pepper Locke on
Posted in Latin American Developments, New York Developments
New York state’s highest court recently held that service on Brazilian defendants in Brazil was effective under New York law even if it did not satisfy Brazilian standards for service of process.
General Contractor Entitled to Primary Coverage Under Its Own CGL Policy And As An Additional Insured Under Its Subcontractor’s CGL Policy
By Troutman Pepper Locke on
A New York state trial court recently ruled that general contractors/owners were entitled to primary coverage under both their own commercial general liability policy and under a subcontractor’s general commercial liability policy as an additional insured.
New York Insurance Department Issues Circular Letter Summarizing Late Notice Legislation and Advising Insurers to Promptly Revise and File Policy Forms Conforming With New Requirements
The New York Insurance Department has now issued Circular Letter No. 26 (2008) dated November 18, 2008 to remind liability insurers writing property/casualty policies of the changes resulting from the new law, which takes effect on January 17, 2009, and also to clarify certain aspects of the Legislation.