LexisNexis® Legal Newsroom
SEC Reaches $137M Settlement With Bank Of America Subsidiary In Municipal Bond Investigation

WASHINGTON, D.C. - (Mealey's) A former subsidiary of Bank of America Corp. that is now part of Merrill Lynch, Pierce, Fenner and Smith LLP on Dec. 7 agreed to a $137 million settlement of a Securities and Exchange Commission investigation into allegations of bid rigging during the investment of proceeds...

COMMISSION NAMES ADVISER AND FINDER IN FRAUD ACTION

The SEC filed an action against a Texas and Mexico based unregistered investment adviser, Jorge Gomez, charging that he misappropriated millions of dollars from one client. The Commission's complaint also named as a defendant the broker and investment adviser for whom he acted as a "finder,"...

Southern District of California Holds that Professional Liability Carrier Breached Its Duty to Defend Because the Underlying Action Alleged Both Non-Covered Professional Services and Potentially Covered Professional Services

Isaacs v. Chartis Specialty Ins. Co. , 2014 U.S. Dist. LEXIS 44053 (S.D. Cal. Mar. 31, 2014), [ enhanced enhanced version available to lexis.com subscribers ]. In Isaacs , the district court held that the insurer breached its duty to defend an underlying action alleging that the insureds were negligent...

Fourth Circuit Limits Liability under Maryland Mortgage Finder’s Fee Act

By Daniel J. Tobin, Alan S. Kaplinsky, Richard J. Andreano, John D. Socknat, and Michael S. Waldron In two recent opinions, the U.S. Court of Appeals for the Fourth Circuit substantially limited the potential scope of liability under the Maryland Finder’s Fee Act, [ enhanced version available...

Broker May Be on the Hook for Insured’s Failure to Provide Timely Notice Of a $5M Claim

When an insured is denied coverage for a claim it is not unusual for someone to suggest that the fault lies with the insured’s broker for its failure to have obtained it. [On one hand, broker liability cases are not true coverage cases. On the other hand, they are nothing short of coverage cases...

Vermont Updates Mortgage Broker Rules

The Vermont Department of Financial Regulation has adopted regulations that update the rules for the licensing and regulation of mortgage brokers. The regulation sets forth standards on: · Individuals who may be authorized to act as a mortgage loan originator (MLO) under the mortgage broker's...

Appellate Division Holds That Buyer Can Sue Seller's Broker For Failing To Relay Offer To Seller

In a decision issued earlier this month, the Appellate Division reinstated a lawsuit against a real estate broker who failed to relay an offer from the buyer to its client, the seller. If you are thinking, as I was, "of course the court would do this, why wouldn't you be able to sue" then...

Insurance Broker Was Not Liable for Failing to Timely Tender an Insured’s Claim Because the Policy Would Not Have Covered the Claim Even if it Were Timely Tendered

Ecolite Concrete USA, Inc. v. G.S. Levine Ins. Services, Inc ., 2014 Cal. App. Unpub. LEXIS 9271 (Cal. App. Dec. 31, 2014), [ enhanced version available to lexis.com subscribers ]. In Ecolite Concrete , the California Court of Appeal affirmed the trial court’s ruling that an insurance broker...

The Trouble With Certificates

By Douglas M. Palais Even though issuing certificates is an important part of the service that you provide to your customers, from an E & O standpoint, they must be handled with extreme care. The following points are not comprehensive, but demonstrate a few of the specific risks and offer some...

2015 Post-Season Florida Insurance Report

Political Overview Republicans fared well in the election cycle that preceded the 2015 Florida Legislative Session. Despite a tight race, Republican Governor Rick Scott won re-election as did the other three GOP Cabinet members. Additionally, Republicans took six House seats from the Democrats...

Unique Look at One of the Newest Aspects of Construction Defect Coverage (And a Broker Warning)

If you do construction defect coverage work, then you’ve definitely seen an endorsement, on a general liability policy, that is along the lines of this (but with more detail): If liability arises out of the insured’s use of a sub-contractor, no coverage is owed to the insured if the sub-contractor...