When an insurance company fails to act in accordance with deadlines established by the Texas Prompt Payment of Claims Act, it faces stiff consequences—specifically, 18% penalty interest on amounts owed to the insured.

Failing to make the cut for the May 26^th House calendar, Senate Bill 1628 is dead.  
 

Last summer, the Texas Supreme Court’s decision in Greene v. Farmers Ins. Exchange, 2014 TEX. LEXIS 757 (Tex. 2014) left many of us scratching our heads. In Greene, the Court reached the surprising conclusion – at odds with prior rulings – that the vacancy clause of a Texas homeowners policy is not “breached” by the insured’s failure to occupy the residence premises, because it does not confer an obligation upon the insured to occupy the property, but merely defines the scope of what the policy insures.

With insured losses reaching a record $23 billion as a result of the 9/11 attacks, businesses were unable to purchase insurance protection against future terrorist events. This left significant sectors of the economy vulnerable, including the real estate, transportation, construction, energy and utility industries. As a result, in 2002, Congress enacted the Terrorism Risk Insurance Act (“TRIA”) as government-backed reinsurance to insurance companies following a declared terrorism event. TRIA provides terrorism insurance accessibility to businesses by requiring business insurers to offer terrorism coverage for the types of claims experienced in the 9/11 attacks.

I buy my son a remote-controlled helicopter every Christmas. It’s just one of many quirky traditions in my family. Because my son is now officially an adult (if 30 years old qualifies as adulthood), I thought he might enjoy an upgrade this year. So, I investigated drones. I was surprised to find a varied selection of drones equipped with different technological abilities like high-powered cameras, infrared sensors, facial recognition technology, license plate readers, and complex autonomous anti-collision systems. 

In the wake of the two recent Malaysia Airlines tragedies and escalating global conflicts, speculation is swirling on the international front about the future of aviation insurance. While standard aviation hull and liability insurance applies to airline accidents caused by pilot error or aircraft safety issues, war risk insurance kicks in when an airline mishap is caused by an act of war or terrorism, as in the case of the MH17 Malaysia Airlines crash and the shelling of Libya’s main airport just over a week ago.

Among other wailing and teeth-gnashing in the wake of President Obama’s re-election are industry predictions that insurance companies will be subject to enhanced federal oversight during the second term. Based on early reactions, the federal microscope seems to be most unwelcome.

Amy Elizabeth Stewart, of Dallas’ Amy Stewart PC, will present “Insurance 101: Fundamentals of Liability Insurance for In-House Counsel” to the Dallas Bar Asociation’s Corporate Counsel Section on Tuesday, Nov. 6 at noon at the Belo Mansion, 2101 Ross Ave. The one-hour presentation provides one hour of MCLE credit. There is no charge for DBA members, although there is a lunch buffet available for purchase. Non-members must pay a fee in order to receive MCLE credit. For more info ...

For those of you waiting breathlessly for the Federal Insurance Office’s reports on reinsurance and insurance regulation, you may want to find a comfortable chair. Some analysts predict the overdue reports probably won’t be coming out until after the November election. Apparently, nobody is looking to alienate state regulators or the insurance industry at this delicate time. Why poke a bear if you don’t have to? Nevermind that these reports were due month ...

Insurance giant AIG, the company that gave us the “too-big-to-fail” ethos in the first place, was notified by the feds this week that it may officially be deemed too big to fail and, thus, subject to enhanced scrutiny and regulatory oversight. In the wake of the 2008 financial crisis, “too big to fail” is the nomenclature commonly applied to banks and other financial institutions the failure of which would significantly threaten the United States' financial stabil ...

Since the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 nearly two years ago, corporate policyholders and industry insiders alike have anticipated its impact on the insurance industry.  Among other measures, the unprecedented financial reform law mandated significant federal regulation of insurance, created generous incentives for whistleblowers that provide quality information regarding potential securities violations, imposed aggressive pe ...

Among other sweeping reforms designed to mitigate against the next financial crisis, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) created the first federal regulatory agency focused on insurance, an industry historically subject primarily to state regulation under the McCarren-Ferguson Act of 1945.  Undoubtedly prompted by the near-failure of insurance giant AIG, the Federal Insurance Office Act of 2010 established the Federal Insurance Office (FIO) within the U. ...