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District Court Holds That Sworn Statements Are Not Covered By Lloyd’s E&O Policy
On July 27, U.S. District Judge Michael Mills for the Northern District of Mississippi held that Lloyd’s of London would not be required to defend Mid-Delta Insurance Agency, Inc. (MDIA) under an errors and omissions policy against claims that MDIA employee Randal Henson made misrepresentations to an insurer.
Initially, MDIA and Henson filed suit in an attempt to force Lloyd’s and the United States Liability Insurance Co. to defend them against allegations that Henson misrepresented information on a client’s application for a commercial policy (issued …
Continue ReadingColorado Secular, For-Profit Employer Granted Temporary Injunction From ACA Contraception Rule
Newland v. Sebelius
U.S. Dist. Ct., Dist. of Colorado, July 27, 2012
The plaintiff in this case is a for-profit, secular employer, that adheres to the Catholic denomination of the Christian faith. The company directors “seek to run Hercules in a manner that reflects their sincerely held religious beliefs” and have implemented within the company a program designed to build their corporate culture based on Catholic principles.
Because the Catholic Church condemns the use of contraception, the company’s self-insured plan does not cover abortifacent drugs, …
Continue ReadingFourth Circuit: No Coverage for Defrocked Priest’s Sexual Abuse
Ranta v. Catholic Mut. Relief Soc’y of Am.
(4th Cir. (S.C.) July 24, 2012)
The Fourth Circuit recently upheld a denial of coverage to a Catholic priest accused of sexually abusing the plaintiff, finding that the molestation did not amount to an “occurrence” within the meaning of the policy.
The plaintiff filed suit against Wayland Yoder Brown, a defrocked Catholic priest and convicted pedophile, the Roman Catholic Diocese of Savannah, and the Diocese’s former and current bishops, alleging that Brown sexually molested, raped, and …
Continue ReadingInsurer to Pay for Museum’s Oil Cleanup
Peabody Essex Museum, Inc. v. U.S. Fire Insurance Company
(D. Mass. July 18, 2012)
On July 18, 2012 the U.S. District Court for the District of Massachusetts affirmed a lower court finding that U.S. Fire Insurance Company should have to pay 43% of the $1.5 million clean up costs for an oil spill on the property of the Peabody Essex Museum. U.S. Fire had filed a motion to reconsider following the determination of U.S. District Court Judge Nathaniel M. Gertner last August. Calling the matter …
Continue ReadingJuly Edition of Reinsurance Review is Now Available
For a free copy of this month’s edition, click here.
To receive this publication for free each month, please contact Jeff Kingsley at [email protected].…
Continue ReadingCases for Reinsurance Review – July 2012 Edition
Cases provided courtesy of LexisNexis.
Continue ReadingObama Extends Federal Flood Insurance Program, OK’s Use of Private Reinsurers
On July 6, 2012, President Obama signed the Biggert-Waters Flood Insurance Reform Act of 2012 extending the National Flood Insurance Program’s authority through September 30, 2017. The law extends the National Flood Insurance Program (NFIP) for five years and makes reforms to the program.
It also calls for reforms including the phasing out of subsidies for many properties, raising the cap on annual premium increases from 10 to 20 percent, allowing multifamily properties to purchase NFIP policies, imposing minimum deductibles for flood claims, requiring the …
Continue ReadingConnecticut Federal Court: No A.I. Coverage Simply Because Named Insured Employed Injured Plaintiffs
Northeast Utilities Serv. Co. v. St. Paul Fire & Marine Ins. Co.
(D. Conn. July 12, 2012)
A Connecticut federal judge recently ruled that a liability insurer was not obligated to provide additional insured coverage to a utility company absent allegations or evidence that the named insured subcontractor’s acts or omissions led to a fatal electrical explosion killing one of its employees.
Northeast Utilities (NU) entered into a Master Services Agreement with American Electrical Testing Co. (AET), under which AET agreed to furnish supervision, labor, …
Continue ReadingSummit Highlights Takaful and Retakaful as Emerging Areas of Risk Protection and Transfer
The International Takaful Summit was held in London on 11 and 12 July 2012 and brought together Takaful and Retakaful practitioners, service providers, and scholars from around the world.
Takaful is a Shariah-compliant mechanism analogous to insurance, although many speakers were at pains to emphasise that it was not simply Shariah insurance. The development of Takaful has followed the strong development of Islamic finance.
Malaysia and the states of the GCC dominate the Takaful market, although the growth rate elsewhere among Muslim communities is strong. …
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