Regulation/Legislation

While there is sizable demand from insureds for coverage against the increasing tide of wage-and-hour claims made under the Fair Labor Standards Act, carriers remain largely reluctant to write policies—fearing a good chance of losing their shirts if they do.

A group of banks seeking to prevent guaranty insurer MBIA Insurance Corp. from splitting into two companies says the company underestimated its losses by as much as $10 billion to the N.Y. State Insurance Dept.

The Texas Windstorm Insurance Association chose to immediately relieve its general manager of his duties rather than keep him until a replacement is found.

Employers are increasingly being confronted with users of medical marijuana on the payroll. Thus far, the courts have sided with the right to terminate or deny employment, but employers are still being advised to shore up drug policies to avoid liability from potentially impaired workers.

As demonstrated by the case of Lilly Ledbetter, which spawned the Fair Pay Act of 2009, what appears a non-issue today might not be tomorrow. This makes the purchase of employment practices insurance vital for small and midsize businesses, according to Burns & Wilcox Manager Dick Weaver

Illinois Insurance Director Michael McRaith was appointed as the first director of the Federal Insurance Office, a move that drew praise from insurance industry members.