IPC Holdings, Ltd. (Nasdaq:IPCR) (BSX:IPCR BH) issued the following statement regarding yesterday's decision by the Supreme Court of Bermuda Commercial Court not to grant Validus Holdings, Ltd.'s request for an expedited trial on the litigation brought by Validus against IPC and Max Capital Group Ltd. (Nasdaq:MXGL) (BSX:MXGL BH).
"We are pleased with the Court's ruling. Despite Validus's efforts, the litigation, which we believe is without merit, will not be an impediment to closing our combination with Max and creating a world-class specialty insurer and
Carbon Monoxide Discharged from Furnance is “Pollutant” Released into Atmosphere
Nautilus Insurance Company v. Country Oaks Apartments, Ltd. (Click on the Case Name for full decision)
(5th Cir. ( Texas), April 22, 2009
The vent to a furnance was accidently blocked, causing the carbon monoxide that would otherwise have been discharged into the atmosphere to be dispersed into an apartment. The carbon monoxide consistuted a “pollutant” within the meaning of the absolute pollution exclusion and its discharge from the furnance constituted discharge into the “atmosphere."
By Daniel W. Gerber and Jeffrey …Continue Reading
Hiscox Announce Major Position Shift in US & London Markets
On April 20, 2009, Hiscox announced several group restructuring the United States and London markets. With respect to Hiscox USA, all business will be now run as a single operation with Richard Watson, former manager director of Hiscox’s Global Markets. Hiscox also announced that its London operation will focus exclusively in the London Market while Hiscox Global Markets division will now separate into the United States and London markets exclusively.
By Jeffrey L. Kingsley
AIG Appoints New Chairman and Chief Administrative Officer
AIG announced on April 27, 2009, that Matthew Winter, President and CFO of American General Life Companies, has been named Vice Chairman of AIG’s Transition Planning and Administration Division. Jeffrey Hurd has been named Chief Administrative Officer and will be responsible for AIG’s global operations.
By Jeffrey L. Kingsley
STAY DENIED PENDING ARBITRATION BECAUSE AGREEMENT DOES NOT CONTAIN AN ARBITRATION PROVISION
EASTERN DISTRICT OF ILLINOIS
CONTINENTAL CAS. CO. V. COMMERCIAL RISK RE-INSURANCE CO.
(CIVIL ACTION NO.: 07-C-6912, April 15, 2009)
Defendants filed an application for a pre-trial stay pending arbitration and application to appoint a referee regarding several reinsurance agreements and a separate "commutation agreement." Pursuant to the "commutation agreement," certain reinsurance agreements between the parties were terminated by consent. Under that agreement, it contained the provision that the parties would submit to the exclusive jurisdiction of the State of Illinois. The "commutation agreement" did …Continue Reading
Recent Proposed Legislation
Assembly Bill 145
(Introduced Jan. 22, 2009, Last Action Apr. 13, 2009)
This bill amends existing law that prohibits a motor carrier of property from contracting or subcontracting with or otherwise engaging the services of another carrier until the contracting carrier provides a certification of compliance with safety inspection certificate, permit and financial responsibility requirement.
Senate Bill 2252
(Introduced Feb. 26, 2009, Last Action Apr. 20, 2009)
This bill relates to professional liability insurance and requires that certain written claims or actions for …Continue Reading
Spouse Has No Individual Tort Claim Against Health Insurer
The Mega Life and Health Ins. Co. v. The Superior Court of Riverside County
(Ct. App.Ca., April 14, 2009)
A spouse can recover on a tort claim for fraud based on the issuance of a health insurance policy to his deceased wife. The spouse, however, has no separate and individual tort claim based on the policy.
Here is the full case
By Daniel W. Gerber and Kimberly Whistler
OCCURRENCE/TRIGGER OF COVERAGE – Emergency Demolition of Structure Was an Intentional Act and Not an Occurrence
Village of Springville v. Argonaut Insurance et. al.
(N.Y.A.D. 4th Dept., April 24, 2009)
In a case successfully handled by the authors, the Appellate Court declared that the insurer was not required to defend the policyholder against a federal claim asserting constitutional violations arising from a Village’s demolition of a fire-damaged building.
In January, 2005 a fire occurred causing significant damage to a structure. As a result of the fire, Village officials determined that it was necessary to demolish the remnants of …Continue Reading
Enforceability of Arbitration Bond Addressed
EVERTEST NATIONAL INSURANCE CO. V. SUTTON et al.
(CIVIL ACTION NO.: 08-CV-4643 – April 7, 2009)
THIRD CIRCUIT DISMISSED APPEAL REGARDING THE ENFORCEABILITY OF AN ARBITRATION BOND BASED ON LACK OF JURISDICTION
Appellants appealed a decision from an order by the United States District Court for the District of New Jersey in which it required them to post security with an arbitration panel following an arbitration decision in which the reinsurer was required to pay 70 million dollars following the first phase of …Continue Reading
Court Upholds Sanctions for Party’s Failure to Arbitrate in Good Faith
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK V.
EMC NATIONAL LIFE COMPANY
(CIVIL ACTION NO.: 07-CV-0828 – April 9, 2009)
Appellant appealed a judgment from the United States District Court for the Southern District Court of New York vacating a portion of an arbitration award on the grounds that the arbitration panel went beyond its authority in awarding attorneys’ fees and arbitrator’s fees as sanctions for a party’s failure to arbitrate in good faith pursuant to the parties’ coinsurance agreement.
The arbitration section …Continue Reading