I was recently asked to look into investment and disclosure requirements for health insurance companies authorized to issue policies in Hawaii.  A summary follows:

    Hawaii Law

    Investment requirements for all insurance companies are addressed in the Article VI of the Hawaii Insurance Code, Haw. Rev. Stat. §431:6-101-6-602.  Generally, any security or other investment purchased by an insurer…

    Last April we reviewed the Hawai`i Intermediate Court of Appeals' (ICA) decision that the Insurance Commissioner's assessments against insurers were unconstitutional taxes.  The Hawai`i Supreme Court recently affirmed in part, reversed in part.  See  Hawaii Insurers Council v. Lingle, 2008 Haw. LEXIS 287 (Haw. Dec. 18, 2008).

    In 1999, the legislature created the Insurance…

    Although the insurer's conduct did not amount to bad faith in Young v. Allstate Ins. Co., 119 Haw. 403 (Haw. 2008), the court held plaintiff's allegations of intentional infliction of emotional distress (IIED) were sufficient to survive a motion to dismiss.

    Plaintiff alleged she was stopped in traffic when a car operated by an…

    Our last post summarized a Texas case (Byrne, Ltd. v. Trinity Universal Ins. Co., 2008 Tex. App. LEXIS 9041 (Tex. Ct. App. Dec. 4, 2008)), which held the insurer must defend where the underlying complaint is silent as to when the injury occurred.  Today we shift gears and review a case favorable to insurers…

    The seminal Hawai`i case on injury in fact and trigger of coverage is Sentinel Ins. Co., Ltd. v. First Ins. Co. of Hawaii, Ltd. 76 Hawai`i 277, 875 P.2d 894 (1994), where the Hawai`i Supreme Court adopted the injury in fact trigger.  Since Sentinel, however, the Hawai`i Supreme Court has not returned to the issue.…

    Interpreting Louisiana law, the Fifth Circuit determined that damages for mental anguish were properly awarded based on the insurer's bad faith.  See Dickerson v. Lexington Ins. Co., 2008 WL 5295389 (5th Cir. Dec. 22, 2008).

    The insured's home was extensively damaged by Hurricane Katrina.  He held a homeowner's policy issued by Lexington.  The insured…

    Most of our prior posts regarding the efficient proximate cause doctrine arise from cases in Mississippi and Louisiana, two states heavily impacted by Hurricane Katrina.  See, e.g. posts here, here, and here.  Considering some creative arguments, the Sixth Circuit recently weighed in on the applicability of the efficient proximate cause doctrine under Michigan…

    In a decision policy holders will appreciate, the Washington Supreme Court recently held the insured could pursue bad faith claims for delay in processing the claim even when there is no coverage under the policy.  See St. Paul Fire and Marine Ins. Co. v. Onvia, Inc., 2008 Wash. LEXIS 1055 (Wash. Nov. 26, 2008).

    The…

     Two recent cases address a homeowner's ability to sue for an incorrect flood zone determination.  Both cases confirmed the homeowner has no private cause of action under the National Flood Insurance Program for an alleged inaccurate flood determination.  The door was left open, however, for state, common law claims under Mississippi law.

    In the…

    The Supreme Court recently granted certiorari in Travelers Indemnity Co. v. Baily, Case No. 08-295 (cert. granted Dec. 12, 2008).  Although Travelers is a bankruptcy case, it addresses whether a settlement with an insured and its insurers bars future direct action claims against the insurance companies. 

    The insured, Johns-Manville Corporation, was reorganized in 1986 under protection of the…