Locke Lord’s Insurance & Reinsurance Newsletter provides topical snapshots of recent developments in the fast-changing world of insurance. For further information on any of the subjects covered in the newsletter, please contact one of the members of our Insurance team.
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Read More Locke Lord’s Insurance & Reinsurance Newsletter – September 2016
The EU-U.S. Privacy Shield (the “Privacy Shield”) has been promulgated through a joint effort between the United States (the “U.S.”) and the European Union (the “EU”) in order to facilitate the transfer of personal data from the EU to U.S. companies. The Privacy Shield officially went live on August 1…
The U.S. Eleventh Circuit Court of Appeals certified 2 questions under Florida law to the Florida Supreme Court relating to 3 STOLI life insurance policies. The Florida Supreme Court rephrased (and conflated) the 2 questions and stated the issue to be, “Can a party challenge the validity of a life…
Read More Florida Supreme Court Advises the Eleventh Circuit that A STOLI Policy Cannot Be Rescinded After the Contestability Period
A Georgia appellate court has ruled that there is no continuous trigger of coverage for an environmental claim when the subject policy responds to occurrences, not property damage, during the policy period. The insured sought coverage from the insurer for costs arising from a 1976 turbine fuel leak. The lower…
Read More Georgia appellate court: no continuous trigger when policy responds to occurrences, not property damage, during the period
The Louisiana Supreme Court has endorsed pro rata allocation of defense costs associated with hearing loss cases across triggered policy periods. The decision reversed a 2015 appellate ruling that pro rata allocation applied to the costs associated with the duty to indemnify but not the duty to defend, making a…
Read More Louisiana Extends Pro Rata Allocation to Defense Costs
“Quota Share Reinsurance”
A form of reinsurance whereby the reinsurer accepts a stated percentage of each and every risk underwritten by the reinsured company within a defined category of business and within the underlying insurance contract parameters on a pro rata basis and is usually paid a pro rata portion…
“SAP”
Insurance statutory accounting principles which are codified in the National Association of Insurance Commissioners’ Accounting Practices & Procedures Manual, and sometimes by “permitted practices” of the state insurance department; the term is oftentimes used as an accounting reference for insurance company financial matters in a stock purchase agreement and…
Read More InsureTerms™/Terminology for the Consummate Insurance & Reinsurance Lawyer: “SAP”
The Illinois Department of Insurance (“DOI”) has issued a notice of proposed rules to create 50 Ill. Adm. Code 941 regarding misrepresentations and false warranties. A previous version of the proposed rule was proposed in December of 2014 and withdrawn in October 2015. The DOI reason for the withdrawal was…
Read More Illinois Department of Insurance Proposes Rule on Misrepresentations and False Warranties
The Wyoming Supreme Court ruled on August 17, 2016 that an insurer “must be prejudiced before being entitled to deny coverage when the insured has failed to give notice ‘as soon as practicable.’” In addressing a certified question from the 8th Circuit Court of Appeals, the Wyoming opinion said it…
Read More Wyoming Requires Insurer Prejudice for Late NoticeIllinois State Treasurer Michael Frerichs has called for statewide hearings to educate the public on how life insurance companies avoid paying death benefits. The first hearing is scheduled for August 17th in Normal, Illinois. According to Frerichs, since 2011, the Illinois State Treasurer’s office has identified more than $550 million…
Read More Illinois Treasurer Holds Statewide Hearings on Life Insurers that Do Not Pay Death Benefits
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