Day: March 9, 2009

A Weeks Worth of National Underwriter Breaking News at the Do Slabb Inn: Special Warren Edition

Come gather ’round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You’ll be drenched to the bone.
If your time to you
Is worth savin’
Then you better start swimmin’
Or you’ll sink like a stone
For the times they are a-changin’.

Put your Dylan on and let’s begin at Berkshire Hathaway subsidiary General Re (not that the reader would know that from the story):

Convicted former Gen Re executive Christopher P. Garand was sentenced to serve a year and a day in prison on his conviction of being involved in a scheme to manipulate American International Group’s financial statement.

In addition to his prison sentence, the former senior vice president and assistant general counsel also was sentenced today to serve two years of supervised release and pay a $150,000 fine by Federal District Court Judge Christopher F. Droney, sitting in Hartford, Conn.

Mr. Garand, along with four others, was convicted in February 2008 of 16 counts that included conspiracy, securities fraud, making false statements to the Securities and Exchange Commission, and mail fraud.

The five executives were convicted of a scheme between General Re Corp. and AIG to inflate AIG’s earnings with two sham reinsurance transactions. The deal increased AIG’s loss reserves by $250 million in the fourth quarter of 2000 and $250 million in the first quarter of 2001, masking declines in loss reserves.

After investigators uncovered the activity, AIG restated its earnings, costing shareholders more than $500 million. Continue reading “A Weeks Worth of National Underwriter Breaking News at the Do Slabb Inn: Special Warren Edition”

Becky Mowbray Profiles Recent Policyholder Court Wins in the Times Picayune

And of course such a profile had to include extensive quotes from Rick Trahant who needs no introduction here at Slabbed and Soren Gisleson whom Nowdy has had the opportunity to chat with via email. Louisiana Insurance Commish Jim Donelon throws a wet blanket on the Ike theory but then again Rick isn’t on Mr. Donelon’s Christmas list in any event. Here is the profile:

After siding with insurance companies in early rulings after Hurricane Katrina, the 5th U.S. Circuit Court of Appeal has suddenly cranked out a stream of policyholder-friendly rulings in hurricane cases.

In recent weeks, the region’s federal appellate court has affirmed an award in favor of a homeowner, overturned a decision in favor of an insurer, said that homeowners can collect mental anguish damages when insurers don’t pay, and revived a whistle-blower lawsuit alleging that insurers ripped off the government in paying flood claims.

The apparent change of heart has left many giddy plaintiff attorneys wondering whether the Texas judges involved in the favorable decisions have been moved by the experience of Hurricane Ike slamming their home state.

“Now, going to work, they see all the damage a Category 1 windstorm did to downtown Houston,” Rick Trahant said. “I think, as people, they can’t help but to be affected by what they’ve seen in their own state in Texas.” Continue reading “Becky Mowbray Profiles Recent Policyholder Court Wins in the Times Picayune”

OMG, Nowdy went to Plato’s Cave looking for the illusion of coverage in anti-concurrent causation (but don’t start any rumors, she has three children)

Talk about having doubt about the meaning, what do you make of this?

I was looking through my Bloglines feedreader last night under my folder labeled “anti-concurrent cause,” and saw this really good post from the Slabbed blog.   This is a fascinating discussion not only of Katrina damage, but of the theory of illusory insurance coverage.  It’s old, now, the post, from the nostalgia file, but it is still worth talking about.

I thought Sop was “illusionating” when he told me about the reference; but, the compliment is real and so is later disclaimer:

So I can’t agree with the premise presented, both by the author, nowdoucit, and quoted material from policyholder lawyer Chip Merlin, that anti-concurrent cause language is in any way ambiguous or illusory.

My first response, however, is neither ambiguous nor illusory.  It’s simply a thank you to David Rossmiller for opening a timely discussion on anti-concurrent causation and another thank you to Chip Merlin for holding up his end of the conversation and our shared position.

Disagreeing with the premise, however, is contrary to fact established in Dickinson v Nationwide. Continue reading “OMG, Nowdy went to Plato’s Cave looking for the illusion of coverage in anti-concurrent causation (but don’t start any rumors, she has three children)”

If I had listened to CNBC “I’d have a million dollars today”

Provided I had started with one hundred million dollars.

Jon Stewart shares a few ugly truths about the business media.  LOL H/T- Steve

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