Injunctive Relief: Be Careful What You Wish For

When crafting requests for injunctive relief, lawyers often counsel clients against overreaching. That’s because should a client seek an order that goes too far, there’s a risk that the request will be rejected wholesale, leaving the client with no relief at all.

Of course, there’s always a chance that a client’s request for injunction will be granted as well. Which means clients must be prepared for the legal and public relations consequences of getting what they asked for. That being said, when framing the injunctive relief to be sought, every client needs to contemplate a very straightforward question: “am I prepared for what happens if the court says yes?” (Read More)

Insurtech and Cybersecurity Underwriting

The underwriting of cybersecurity insurance policies has long been a challenge. That seems to be changing. At-Bay, a new entrant to the cyber insurance space working out of Mountain View, California and Tel Aviv, promises to harness new technology to improve the process and help insureds better control their cyber risks. (Read More)

Buying Insurance? There's an App for That

Lemonade, an insurance startup offering renters, condominium, and homeowners insurance, has recently expanded to offer policies in California and Illinois, after launching in New York last year. The company hopes to market insurance to millennials by borrowing marketing strategies that have served other industries well in reaching that demographic: a charitable element, along with app-based service and purchasing. (Read More)

Regulators Rebuffed: CA Court Rejects $27 Million “Broker Fees” Fine

For decades, the California Department of Insurance (CDI) has interpreted the California Insurance Code in a manner that recognizes broker-charged fees as part of a “premium” that may be imputed to the insurer for purposes of rate-setting and rate-filing regulations. This position has long been a roadblock for brokers in the non-standard automobile insurance industry. However, in a considerable setback for the CDI, an Orange County Superior Court has invalidated this interpretation in its review of a CDI enforcement action against an insurer. On August 12, 2016, in Mercury Insurance Company v. Jones, the court ruled that broker fees charged for services other than the procurement of insurance should not be considered a component of “premium” for purposes of rate regulations. On these grounds, the court reversed the CDI’s imposition of a record-breaking $27 million civil penalty against Mercury Insurance Company. (Read More)