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Reinsurance

Breaking News: Willis Group Holdings Ltd Settles Reinsurance Dispute with CNA for 130 Million

CNA et al v. Willis Limited et al

According to its 8-K filing, Willis Limited, a subsidiary of WIllis Group Holdings Limited, acknowledged that it settled "the placement of personal accident reinsurance in London and elsewhere" with CNA Financial Corporation and Continental Casualty Company ("CCC") for a total sum of $130 million.  CNA had previously requested a sum of approximately $251 million for Willis' alleged negligence and/or "deceit" in English's Commercial Court.  The total figure will be paid in two installments.  The first installment of $60 million  will be paid …

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Environmental

Pennzoil to Pay $2M Deductible for Each Pollution-Related Condition Alleged in Four Underlying Complaints

Pennzoil-Quaker State Co. v. American Int’l Specialty Lines Ins. Co.

(S.D. Tex. Sept. 4, 2009)

Pennzoil-Quaker State Company sued its insurer, American International Specialty Lines Insurance (“AISLIC”) alleging breach of contract and a violation of Chapter 542 of the Texas Insurance Code. Pennzoil obtained a claims-made pollution legal liability policy from AISLIC for its Shreveport, Louisiana facility. In 2001, residents who lived near the Shreveport facility sued Pennzoil, alleging that Pennzoil released various pollutants into the air and groundwater surrounding the refinery, causing physical injury, …

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Professional Liability Monthly

Professional Liability Monthly provides a timely summary of decisions from across the country concerning professional liability policies

The publication is distributed monthly. Cases are organized by topic, and where available, hyperlinks are included providing recipients with direct access to the full decision. In addition, we provide the latest information regarding news in the professional liability industry. We appreciate your interest in our publication, and welcome your feedback. We also encourage you to share the publication with your colleagues. If others in your organization are interested in receiving the publication or if you would like to be removed from the distribution list, please …

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Professional Liability Monthly

Cases Cited in Professional Liability Monthly

Download Great American v. North Seattle Comm.

Download Sprint Nextel v Executive Risk

Download HLTH Corp. v. Federal Ins.

Download Herley Ind. v. Federal Ins.

Download Audit Bureau v. Axis Spec

Download Admiral Ins. v. SONICblue

Download California Diaries v. RSUI Indem.

Download Hilco Capital v. Federal Ins.

Download AIG v. Tussey

Download Mortgage Express v. Tudor Ins.

Download Chartrand v. Illinois Nat.

Download US Fidelity v. VOA Assoc

Download American Auto Ins. v. Lifeco

Download Westport v. Markham Group

Download Medical Protective Co. v. …

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Uncategorized

California Court Affirms Judgment Against Insurance Agent HRH

Williams v. Hilb, Rogal & Hobbs Ins. Services of California, Inc.

(Cal. App. September 9, 2009)

Following a bench trial, an insurance agency was found liable for negligence in advising on, procuring and maintaining an insurance package for a new business venture that did not include worker’s compensation insurance.  The court held that although an insurance agent does not have a duty to volunteer to an insured that the latter should procure specific insurance coverage, the rule changes under certain circumstances.  An agent …

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Reinsurance

District Court Dismisses Claims Against Reinsurer Based On Res Judicata Effect Of Prior Federal Arbitration Award.

Guarantee Trust Life Ins. Co. v. First Student Programs, LLC. et. al.

(United States District Court, Northern District Illinois, Eastern Division, September 8, 2009)

At issue in this reinsurance action is the res judicata effect of a prior arbitration award on the pending suit and whether insured’s compliant is barred by the arbitration award that resolved the dispute between reinsurer and the primary insurer.   Specifically, Guarantee Trust Life Insurance Company (GTL), which provides health insurance to college students, brought this lawsuit for reinsurance …

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Directors and Officers

District Court Rules that D&O Dispute Involving a Defunct Tax Shelter is Ripe and Allowed to Proceed Forward

Sprint Nextel Corp. v.  Executive Risk Indemn et. al.

(District Court of Kansas, September, 1, 2009)

 

Sprint Nextel Corporation has filed suit against a number of insurers providing Directors and Officers coverage seeking a declaration of rights under the respective policies for losses arising out of a 2003 securities litigation. Sprint Nextel has expended in excess of $2Million in costs resulting from the derivative action. 

 

The coverage dispute concerns, in part, which insurer is on the risk for the 2000 and 2001 …

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Directors and Officers

Insurers Settles With Broadcom For $118M For Backdating Suit

In Re Broadcom Corp.

(Central District, California)

 

A proposed partial settlement with numerous insurers is set to allow Broadcom Corp. to recovery $118 million for a derivative suit involving a $2.2 billion stop options backdating scheme.  Most of the funds come from the insurers providing Broadcom Corp. with directors and officers coverage.

 

The proposed settlement was filed Friday in the U.S. District Court for the Central District of California.  The settlement would resolve the consolidated federal derivative suit for most of …

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Reinsurance

Liberty Mutual Files New Complaint Against AIG For Alleging Underreporting Reinsurance Pool

National Council of Compensation Insurance, Inc. v. AIG et al (Northern District of Illinois, August 31, 2009)

Just a few days after District Court Judge Gettleman dismissed the lawsuit initiated by the National Workers' Compensation Reinsurance Pool for lack of standing, Liberty Mutual Insurance Co., among several other insurance companies, filed a new lawsuit against AIG on August 31, 2009 based upon the same facts.  Liberty Mutual alleges to have standing as being a member of the pool. 

The lawsuit alleges that AIG falsely provided false reports …

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