Litigation

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

American International Group Inc. has sued two financial firms alleging that they engaged in fraud and unjust enrichment by issuing exotic securities they claimed were backed by prime mortgage-backed securities.

American International Group Inc. could be on the hook for total claims of perhaps $800 million or more involving profits on real estate deals involving AIG’s Global Real Estate unit, according to a lawsuit that could come to trial in New York as early as this summer.

A Chinese drywall supplier's insurers have agreed to pay up to $8 million to settle court claims against the company over damage to homes from the corrosive product, according to a proposed settlement filed Tuesday.

There may never be another mass tort that combines widespread bodily injury with long-tail exposure as effectively as the “miracle mineral” of asbestos. But there are some interesting parallels between asbestos and a developing threat known as “fly ash.”

On the final day of the conference, agents met to hear a panel discussion with three insurance-industry CEOs and the president of the Insurance Information Institute on the state of the industry.