Janice Kupukaa filed a medical practice lawsuit against Kaiser Permanente (“Kaiser”), a medical facility, and other entities and individuals in Hawaii state court. Kaiser was insured under primary insurances policies issued by Texas Farmers Insurance Company (“Texas Farmers”), which covered the period of 4/9/99-4/9/00, 4/9/00-4/9/01 and 4/9/01-4/9/02, respectively.
Reinsurance
California Federal Court Concludes That Reinsurer Is Not Subject To Tort Liability For Alleged Breach Of A Reinsurance Contract Under California Law
By Troutman Pepper Locke on
Recently, the United States District Court for the Central District of California concluded in a matter of first impression that a reinsured cannot recover in tort for a reinsurer’s alleged breach of the implied covenant of good faith and fair dealing. …
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Florida Senate Passes Bill to Reduce Insurers’ Catastrophe Coverage Limits
By Troutman Pepper Locke on
The Florida Senate Banking & Insurance Committee passed legislation last month that would reduce the state-funded reinsurance, which insurers are permitted to purchase in addition to the Florida Hurricane Catastrophe Fund coverage (Cat Fund). The measure, backed by Florida’s Chief Financial Officer Alex Sink, is designed to shed some of the state’s hurricane risk.
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New Hampshire Supreme Court Considers Offset Issue in the Home Insurance Company Liquidation
By Troutman Pepper Locke on
The New Hampshire Supreme Court will hear oral argument on April 30, 2008, in In the matter of the Liquidation of The Home Ins. Co., No. 2007-0794, N.H.), to consider whether the Superior Court erred in ruling that the a setoff claimed by Century Indemnity Company (“CIC”) lacked the mutuality necessary to trigger setoff under the New Hampshire Insurers Rehabilitation and Liquidation Act (the “Liquidation Act”).
NAIC to Complete Reinsurance Regulatory Framework by the end of 2008
By Troutman Pepper Locke on
This post serves as an update to our postings on June 7, September 12, October 9, October 19 and December 11, 2007. The NAIC Reinsurance (E) Task Force (“Task Force”) met during the Spring NAIC meeting last month to discuss a memorandum from the NAIC Staff dated March 19, 2008.
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Resolution Issued by Ukrainian Court Rejects Enforcement of Arbitration Awards Under New York Convention
By Troutman Pepper Locke on
A member of the U.S.-Ukraine Business Council recently predicted that a resolution issued by the Ukrainian High Commercial Court may lead to that country’s secession from the U.N. Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “Convention”).
U.S. Supreme Court Rejects Expanded Judicial Review of Arbitration Awards
By Troutman Pepper Locke on
In a much anticipated decision, the U.S. Supreme Court recently held that the Federal Arbitration Act’s (“FAA”) statutory grounds for vacating and modifying arbitration awards are “exclusive,” and thus cannot be expanded, even if expressly agreed upon by the arbitrating parties.
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Reinsurer Argues that California Law Prohibits Tort Recovery for Bad Faith in the Reinsurance Context
By Troutman Pepper Locke on
On March 17, 2008, in a case pending in the United States District Court for The Central District of California, California Joint Power Insurance Authority v. Munich Reinsurance America, Inc., Case No. CV08-00956, Munich Reinsurance America, Inc. (“Munich Re America”) filed a motion to dismiss the count of the complaint filed by plaintiff California Joint Power Insurance Authority (“CJIPA”) seeking tort and punitive damages for an alleged breach of the implied covenant of good faith and fair dealing under the reinsurance agreement entered into between the parties.
Arbitration Prevails: U.S. Supreme Court Holds that Federal Arbitration Act Supersedes State Law Vesting Another Forum with Jurisdiction Over a Dispute
By Troutman Pepper Locke on
Consistent with the strong federal policy favoring the enforcement of arbitration agreements, the United States Supreme Court recently held that when parties agree to arbitrate all questions arising under a contract, the Federal Arbitration Act (“FAA”) supersedes state laws lodging primary jurisdiction in another forum.
Treasury Secretary Proposes Sweeping Changes to Federal Oversight that Affects the Insurance Industry
By Troutman Pepper Locke on
On March 31, 2008, Treasury Secretary Henry M. Paulson, Jr. released the Department of the Treasury Blueprint for a Modernized Financial Regulatory Structure (the “Blueprint”) in a speech given at the Treasury Department. The Blueprint is a series of recommendations for regulatory reform for U.S. financial services industries intended to broaden consumer protections, increase efficiencies, and provide market stability through stream-lined regulatory oversight. A high-level view of the Blueprint was originally introduced on June 27, 2007.