The Nonadmitted and Reinsurance Reform Act of 2010 (“NRRA”) provisions are applicable in Puerto Rico. The Office of the Commissioner of Insurance issued a circular letter setting forth the standards for the placement of...more
QBE Seguros brought a successful action declaring a marine insurance policy was void ab initio under the doctrine of uberrimae fidei and the breach of the warranty of truthfulness in the application for insurance....more
9/5/2018
/ Applications ,
Bad Faith ,
Breach of Warranty ,
Consequential Damages ,
Counterclaims ,
Insurance Claims ,
Insurance Industry ,
Marine Insurance ,
Material Misrepresentation ,
Policy Terms ,
Property Damage ,
Puerto Rico ,
Vessels ,
Void ab initio
Petitioner, a captive insurer domiciled in Anguilla, applied to be a tax-exempt small insurance company under IRC section 501(c)(15), and filed returns on this basis, making an election under IRC section 953(d)....more
County of Suffolk v. Lexington Ins. Co., Case Number 604661-2017, Supreme Court of the State of New York, Suffolk County -
Under New York law, the requirement of a fortuitous loss is a necessary element for coverage to...more
4/17/2018
/ Breach of Contract ,
Covenant of Good Faith and Fair Dealing ,
Denial of Insurance Coverage ,
Duty to Defend ,
E&O Insurance ,
Energy Sector ,
Insurance Industry ,
Insurance Litigation ,
Justifiable Reliance ,
Leases ,
NY Supreme Court ,
Parking Lots ,
Promissory Estoppel ,
Solar Panels ,
State and Local Government ,
State Contractors ,
Wrongful Acts
The filed-rate doctrine precluded recovery of deficiency assessments the Workers’ Compensation Reinsurance Association (WCRA) levied against employers which were alleged to have been wrongfully collected in 2013 and 2014 when...more
When is a misrepresentation material on an application for insurance coverage? The Ninth Circuit affirmed a decision from the Central District of California, finding that an answer on an application for D&O insurance was a...more
Finding Montana law was inapplicable to the subject insurance policy under both federal maritime choice-of-law principles and the policy language, the Ninth Circuit Court of Appeals determined that an arbitration clause was...more
2/5/2018
/ American Arbitration Association ,
Appeals ,
Arbitration ,
Arbitration Agreements ,
Choice-of-Law ,
Federal Arbitration Act ,
Forum Selection ,
Insurance Industry ,
Insurance Litigation ,
Marine Insurance ,
McCarran-Ferguson Act ,
Policy Terms ,
State and Local Government ,
Venue
Seeking reimbursement of fees paid, allegedly by mistake, under the transitional reinsurance program in the Patient Protection and Affordable Care Act (“ACA”), the trustees of the Twin City Pipe Trades Welfare Fund’s sued the...more
Following a jury trial, Utica Mutual Insurance Company was awarded $35 million, plus interest ($29,092,191.78) on its claims against Fireman’s Fund Insurance Company to enforce the terms of the certificates of reinsurance...more
After 14 years, the Commissioner of Insurance of the Virgin Islands has been discharged as conservator of Phoenix Fire and Marine Insurance Company (“Phoenix”). The Commissioner reported that: $15,936,228.13 had been paid to...more
Defendant Golden Isles Reinsurance Company, Limited (“Golden Isles”) sought detailed information regarding individual claims Canal Insurance Company (“Canal”) submitted for reimbursement under the parties’ reinsurance...more
Applying Delaware law, a South Carolina District Court found Plaintiff had properly pled its causes of action for breach of contract, breach of fiduciary duty, negligence/gross negligence and negligent misrepresentation...more
10/25/2017
/ Banking Sector ,
Breach of Contract ,
Breach of Duty ,
Duty of Care ,
Fiduciary Duty ,
Fronting Policies ,
Good Faith ,
Gross Negligence ,
Insurance Industry ,
Insurance Litigation ,
Motion to Dismiss ,
Negligence ,
Negligent Misrepresentation ,
Trust Accounting ,
US Bank National Association
The bill defines a dormant captive insurance company as one that (1) did not contract for any direct premium or reinsurance premium for a full calendar year, (2) is not obligated as an insurance company under any contract of...more
This case involves a tax dispute centering on whether certain “purported” insurance and reinsurance transactions “lacked economic substance.” Following an in camera review of communications identified in Respondents’...more
The parties in this case presented to a court the issue of whether a reinsurance syndicate for which Federal Insurance acted as “a front” was a real party in interest and should be involved in an arbitration between Federal...more
Respondent moved for an immediate stay of an arbitration of claims relating to the purchase of insurance and to vacate the panel’s interim award requiring the posting of pre-hearing security. Petitioner moved to confirm the...more
The question presented to the Court was “whether federal law has opened the door for state law to ‘reverse preempt’ the diversity jurisdiction statute.” The McCarran-Ferguson Act was enacted by Congress to prevent federal...more
After previously holding that various claims against the insured, Pella, alleged property damage caused by an “occurrence,” thus triggering Liberty Mutual Insurance Company’s (“Liberty”) coverage obligations under various CGL...more
A Texas federal court addressed a dispute as to whether the insurance policy at issue contained an arbitration agreement and whether it required arbitration of the particular claim. Looking at the “Law and Practice” provision...more
A Plaintiff annuity holder was prohibited from pursuing her federal racketeering claims against an insurance company and its affiliates, as doing so would impair state regulation of insurance business, contrary to the...more
Under Alabama law, “arbitration may be compelled under the doctrine of ‘intertwining’ where arbitrable and nonarbitrable claims are so closely related that the party to a controversy subject to arbitration is equitably...more
We previously reported on the New York Department of Financial Services’ proposed cybersecurity regulations. During the public comment period, the DFS received over 150 comments. In response, the DFS announced on December 28,...more
2/27/2017
/ Banking Sector ,
Chief Information Security Officer (CISO) ,
Confidential Information ,
Cybersecurity ,
Cybersecurity Framework ,
Data Protection ,
Disclosure Requirements ,
Financial Institutions ,
Financial Services Industry ,
Information Technology ,
Insurance Industry ,
Notice Requirements ,
NYDFS ,
Personally Identifiable Information ,
Risk Assessment ,
Risk Management ,
Third-Party Service Provider
We previously reported on the New York Department of Financial Services’ proposed cybersecurity regulations. During the public comment period, the DFS received over 150 comments. In response, the DFS announced on December 28,...more
1/17/2017
/ Banking Sector ,
Chief Information Security Officer (CISO) ,
Comment Period ,
Confidential Information ,
Cybersecurity ,
Cybersecurity Framework ,
Data Protection ,
Disclosure Requirements ,
Encryption ,
Financial Institutions ,
Financial Services Industry ,
Insurance Industry ,
Notice Requirements ,
NYDFS ,
Personally Identifiable Information ,
Popular ,
Risk Assessment ,
Risk Management ,
Third-Party Service Provider
The Second Circuit certified to the New York Court of Appeals the question of whether its 2004 decision (Excess Insurance Co. v. Factory Mutual Insurance Co., 3 N.Y.3d 577 (2004)) imposed
“either a rule of construction, or...more
Applying Wisconsin law, the Seventh Circuit Court of Appeals determined the parties did not have an agreement to arbitrate because, even though their excess/reinsurance agreement contained “follow form” language, and the...more