Litigation

The Independent Insurance Agents & Brokers of New York reports it will file its appeal of a court decision upholding Regulation 194 in the next several weeks.

Allstate Corp.’s Encompass Insurance says it has come out on top in a legal battle with chiropractors in Massachusetts.

New rules that expose executives and directors of troubled financial-services institutions to unexpected negative consequences—including the possible loss of their salaries and other compensation—have sparked the creation a new insurance coverage.

Unlike last year’s flood of “pre-claim inquiry” offerings that focused on coverage for the investigation-response costs of individual executives and directors, Chartis’ new “Investigation Edge” offering, a standalone policy introduced in March, addresses corporate costs, including the massive expenses associated with producing documents required by the Securities & Exchange Commission.

With new coverages evolving and the SEC setting its sights on increased enforcement activities, specialty insurance coverage for regulatory investigations is a hot topic among buyers and sellers of management liability insurance. Brokers assess the options and price trends.

For public companies navigating the continuing fallout from the global financial meltdown, dealing with regulatory investigations is about as inevitable as death and taxes. D&O insurance products are evolving to cover some of the costs.