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Under prior law (Law No. 17418, Article 162), Argentina treated reinsurance as an international undertaking and permitted the ceding company and the reinsurer to choose the appropriate law and jurisdiction in their contract.  Recent Resolution 33.320/2008, however, provides that all new reinsurance contracts involving local insurers, whether treaty or facultative, must stipulate that the contract is subject to Argentinean law and jurisdiction. …
Read More Argentina: New Resolution Requires That Reinsurance Contracts Conform To Argentinean Law and Jurisdiction

In Cain Petroleum Inc. v. Zurich American Insurance Company, A134133 (Or. Ct. App. Dec. 3, 2008), a company that operated gasoline stations sought coverage for a contaminant release under its “Storage Tank System Third Party Liability and Cleanup Policy,” which provided coverage for environmental cleanup costs and third party liability caused by releases from a “scheduled storage tank system” at 17 “scheduled location[s]” after a specific “retroactive date.” 

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Read More Environmental Claims – Limitation to Specified Storage Tanks Upheld

On January 16, 2009, United States District Judge Rebecca R. Pallmeyer, of the U.S. District Court, Northern District of Illinois, Eastern Division, granted summary judgment in favor of defendants UnitedHealth Group, Inc. and Pacificare Health Systems, Inc. on all claims in the antitrust litigation with institutional pharmacy Omnicare, Inc. 

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Read More Illinois Federal Court Dismisses Antitrust Suit Brought by Institutional Pharmacy Against Insurer

Reuters reports that bond insurer Assured Guaranty Ltd.’s proposed acquisition of Belgian lender Dexia’s U.S. bond insurance unit cleared an antitrust hurdle with the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. …
Read More U.S. Bond Insurer Clears an Antitrust Hurdle in Acquisition of U.S. Bond Insurance Unit of Belgian Lender

This summer, the Delaware Chancery Court arguably expanded the potential liability of independent directors of Delaware corporations by declining to grant summary judgment in favor of non-conflicted, independent directors that had allegedly accepted a buyout offer without performing standard due diligence about the fairness of the deal. 

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Read More Delaware Supreme Court May Uphold Expansion of the Potential Liability of Independent Directors

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. 

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Read More New York State Court Reverses Demand Futility Dismissal Although Board Had Formed an SLC Before Litigation Was Filed

The Second Circuit Court of Appeals has affirmed the dismissal of an “F-Cubed” securities class action — i.e., a securities class action brought by foreign investors who purchased shares in a foreign company on a foreign stock exchange — on subject matter jurisdiction grounds. …
Read More Second Circuit Affirms Dismissal Of “F-Cubed” Securities Class Action

Hutchinson Technology, Inc., a firm with a dual focus on computer hardware technology and health care technology, recently filed suit against UBS AG, UBS Financial Services and UBS Securities LLC (“UBS”) for allegedly fraudulently inducing Hutchinson to purchase millions of dollars in auction rate securities (ARS). …
Read More Hutchinson Technology Files Suit Against UBS Claiming That Auction Rate Securities Regulatory Settlements Are Not Enough

The United States District Court for the District of Colorado recently held that a warranty letter’s prior knowledge exclusion barred coverage for defense costs incurred by the insured directors and officers in an enforcement action initiated by the SEC. A copy of the decision can be found here. 

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Read More Prior Knowledge Exclusion in Warranty Letter Relieves D&O’s Insurer’s Obligation to Pay Increased Limits

Thomaz Menezes, president of Marsh Brazil and Latin America, reportedly recently commented that the broker expects insurance premium rates to rise in the Brazilian market in 2009 due to the global financial crisis and resulting rise in claims.  In particular, Menezes reportedly commented that Marsh expects director and officer liability premium rates to rise between 10% and 30% and premium rates for property and engineering insurance to rise approximately 10%. …
Read More Brazil: Market Expected to Harden in 2009