Department of Corporations amends its position on Lloyd's of London funds.SACRAMENTO - The California Department of Corporations has amended its case against Lloyd's of London Not to be confused with Lloyds Bank or Lloyd's Register. Lloyd's of London is a British insurance market. It serves as a meeting place where multiple financial backers or “members”, whether individuals (traditionally known as and is now seeking a lien against $500 million in bank funds on behalf of California investors known as "names," instead of a freeze on billions of dollars. But the state Department of Insurance and representatives of Lloyd's say the DOC case still poses a threat to policyholders, including California government agencies, to local insurance companies and to the stability of Lloyd's. "What we're concerned about is if California (DOC) succeeds (in seizing the $500 million), all the other states will line up; that becomes a precedent," said Lloyd's spokesman Jon Kaufman with the public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most firm Solem & Associates. The California DOC claims in its case that Lloyd's defrauded hundreds of Californians who invested in Lloyd's by becoming "names" - basically underwriters of Lloyd's insurance policies. Large insurance claims in 1989-1991 led to huge losses for the names, who are now being asked to pay for those claims as part of a corporate restructuring of troubled Lloyd's. The DOC claims the names were misled about the nature of their memberships and the riskiness of the coverage they were underwriting. The Insurance Department claims that by tying up funds to pay names, the DOC would be endangering the viability of smaller insurance companies that "reinsure re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. " through Lloyd's, in addition to entities with Lloyd's coverage, including California transit agencies and airports. "This (amended complaint amended complaint n. what results when the party suing (plaintiff or petitioner) changes the complaint he/she has filed. It must be in writing, and can be done before the complaint is served on any defendant, by agreement between the parties (usually their lawyers), from the DOC) doesn't change our position one iota," said Richard Wiebe, spokesman for the state Insurance Department. "The money in the (Lloyd's) fund is for policyholders, not for names, and it must remain unencumbered." The chief administrative officer A chief administrative officer (CAO) is responsible for administrative management of private, public or governmental corporations. The CAO is one of the highest ranking members of an organization, managing daily operations and usually reporting directly to the chief executive of the City and County of San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden released a statement last week saying that if a freeze or seizing of Lloyd's assets invalidated coverage, the city would be confronted with legal problems because it would be in breach of contract with contractors for whom it provides coverage. Meanwhile, in another curious turn of events, the downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or law firm Girardi & Keese - which represents Hollywood Boulevard For uses other than the original street, see Hollywood Boulevard (disambiguation). Hollywood Boulevard is a boulevard in Hollywood, Los Angeles, California, United States, beginning at Sunset Boulevard in the east and running northwest to Vermont Avenue, where it straightens out property and business owners suing the Lloyd's-insured Metropolitan Transportation Authority for $1 billion-plus in Metro Rail damage - is also representing names in a lawsuit against Lloyd's law firm LeBoeuf, Lamb, Greene & McRae. That case claims that the firm failed to disclose to potential names information it had about the riskiness of the coverage the names underwrote. "Our clients are people who got duped into becoming investors," said attorney Tom Girardi. "This law firm acted as lawyer for Lloyd's and as lawyer for names. "If these people (names) get money from (LeBoeuf, Lamb and its malpractice insurance carrier), they could use that to pay the Lloyd's losses. This could be hundreds of millions of dollars. ... The focus of all this litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. is to create funds to pay these claims so the thing will be viable." LeBoeuf, Lamb partners released a statement calling the names' suit against them "an outrageous tactic calculated to prevent LeBoeuf, Lamb from representing our client, Lloyd's of London." "The firm does not represent and has never been the attorneys for U.S. members (names) of Lloyd's," said the statement from LeBoeuf, Lamb partner Dean Hansell. |
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