Litigation

Ambac Financial Group Inc. reported a 2010 fourth-quarter loss of close to $82 million on the combination of decline in new business and decrease in investment gains.

Banks fighting the split of MBIA into two companies said they submitted affidavits from four former New York insurance superintendents stating that the department violated its duty by allowing the insurer to make the move.

Florida OIR appears ready to battle lawsuit from public adjusters.

Now more than at any time since the savings and loan crisis in the 1980s, directors and officers of financial institutions must be aware of liability risks related to performance of their duties. The FDIC is on a litigation campaign.

Is a construction defect an occurrence covered by a commercial general liability policy? That's the key question for homebuilders and contractors facing Chinese drywall damage claims. The insurance and liability issues are becoming increasingly complicated by conflicting state court rulings over the lingering coverage question.

Construction-insurance pros see some signs for market improvements in 2012 and 2013, as the economy recovers and projects continue in key industries, such as health care and education. A second round of stimulus funding would also help.