New York Developments

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A New York appellate court recently held that a coverage action was not rendered merely “academic” by the dismissal of the underlying property damage action because the insured continued to have a claim for litigation expenses incurred in defense of the underlying action. …
Read More New York Appellate Court: Insurer Not Entitled to Dismissal of Coverage Action Just Because Underlying Suit Is Dismissed

The New York Appellate Division, First Department, recently denied a reinsurer’s motion for summary judgment, finding that an issue of fact existed as to whether a cedent’s allocation of an underlying claim to a reinsured policy was made in bad faith and constituted an ex gratia payment. 

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Read More New York Court Finds That a Factual Issue Exists as to Whether a Cedent’s Allocation was in Bad Faith and Constitutes an Ex Gratia Payment

As part of raising the proposed $1 billion Upstate Revitalization Fund in New York Governor Eliot Spitzer’s Executive Budget, Spitzer has requested that surcharges on all automobile policies issued in New York be raised by $15; the current surcharge is $5. 

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Read More New York Governor Spitzer Proposes Additional $15 Fee On All Auto Policies

Under recently-enacted legislation, New York State has switched to a loss cost system for determining workers’ compensation rates.   The New York Compensation Insurance Rating Board (“NYCIRB”) has been tasked with developing loss cost values, and each insurer will submit its own loss cost multiplier to the New York State Insurance Department (the “Department”) for approval. …
Read More New York Adopts Loss Cost System For Setting Workers’ Compensation Rates

As the credit crunch of the subprime meltdown continues, a recent question has been whether a government or private bailout of the troubled bond insurers is on the way.  While early reactions were positive, recent events seem to indicate that a bailout by state and federal regulators or private industry is getting more unlikely by the day. …
Read More Bond Insurers – Bailout on the Way?

By Order dated December 27, 2007 a New York appeals court rejected an absent class member’s bid to obtain the work product of lead counsel in the CA Inc. securities class action.  The absent class member, billionaire Sam Wyly, a major CA shareholder, alleged that the $134 million settlement of the CA securities class action obtained by lead counsel was inadequate. 

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Read More Absent Class Member Not Entitled to Privileged Work-Product of Lead Counsel

In C v D [2007] EWCA Civ 1282, D insured C under a Bermuda Form policy that provided for London arbitration and was governed by New York Law. C commenced arbitration proceedings in London against D for unpaid monies and the Tribunal held that C was entitled to recover in full. 

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Read More Bermuda Form: The Court of Appeal upholds an anti-suit injunction to prevent a challenge to an English Arbitration award in the US

A New York appellate panel recently affirmed a lower court’s decision finding that each worker’s injuries from exposure to chemicals found in popcorn flavoring resulted from separate occurrences for purposes of applying a “per occurrence” deductible under certain general liability insurance policies. 

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Read More New York Court Holds That Injuries Caused By Exposure to Popcorn Chemicals Resulted From Multiple Occurrences

Individual self-insured employers in New York may encounter major changes to how their workers’  compensation plans are secured if recommendations proposed by New York’s Workers’ Compensation Board (the “Board”) become law.  The Board issued a report recommending that self-insuring employers be required to join a guarantee pool instead of the present system where individual self-insuring employers post a security deposit, such as a letter of credit or surety bond, equivalent to their outstanding workers’ compensation claims. …
Read More New York Workers’ Compensation Board Proposes Self-Insurer Guarantee Pooling